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 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.