SAP Stock Analysis (NYSE:SAP)
SAP Analysis Video
View SAP stock analysis video. This is our SAP analyst opinion covering the buy and sell arguments for SAP stock.
SAP SE (ADR) Stock Rating (3.4/5)
Our SAP stock opinion is based on fundamentals of the company. This SAP stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy SAP stock?
- SAP's average operating margin of 21.1% was exceptional.
- LTM Net margins were good at 15.8% for SAP.
- The company has an operating cash flow which is 5.5 times the net income.
- SAP has an attractive ROIC (Return on Invested Capital) of 12.4%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for SAP at 14.6%.
- SAP has a healthy FCF (Free Cash Flow) margin of 54.3%.
Should you sell SAP stock?
- SAP has a debt/equity ratio of 0.31, which is worse than the average in the Computer and Technology sector.
- The company is trading at a price to sales multiple of 4.8, which is overvalued in comparison to the Computer-Software industry average multiple of 2.7.