SAP Stock Analysis (NYSE:SAP)

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$106.81 $0.22 (0.21%) SAP stock closing price May 25, 2017 (Closing)
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SAP
Updated on : May 25, 2017
previous close
SAP 106.8 (0%)
NASDAQ 6205.3 (0%)
Closing Price On: May 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
21.1%
Sector Average:
5.9%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.77B
Debt/Equity Ratio:
 0.31
Compared to the industry
Cash Flow
Operating cash flow:
$3.06B
Net Income:
$555.2M
Dividend Yield
SAP dividend yield:
0.87%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SAP PS :
5.2
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.4%
Return on Equity:
14.6%
Free Cash Flow Margin:
54.3%
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SAP Analysis Video

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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 had a healthy average operating margin of 21.1% over the last 4 quarters.
  • Net margins stood at a healthy 15.8% (average) for SAP in the Trailing Twelve Months.
  • The operating cash flow looks good at 5.5 times the net income.
  • SAP's return on invested capital of 12.4% is good.
  • SAP has a good Return On Equity (ROE) of 14.6%.
  • The company has a good Free Cash Flow (FCF) 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 5.2, which is overvalued in comparison to the Computer-Software industry average multiple of 2.7.

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