SAP Stock Analysis, Valuation (NYSE:SAP)

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$110.27 $0.64 (0.58%) SAP stock closing price Sep 22, 2017 (Closing)
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SAP
Updated on : Sep 22, 2017
previous close
SAP 110.3 (0%)
NASDAQ 6426.9 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.1%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
7.84B
Debt/Equity Ratio:
 0.29
Compared to the industry
Cash Flow
Operating cash flow:
$805.4M
Net Income:
$734.7M
Dividend Yield
SAP dividend yield:
0.89%
PROS      CONS
Operating Margins
Net Margins
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:
11.5%
Return on Equity:
13.8%
Free Cash Flow Margin:
12.7%
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SAP Stock Analysis

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View SAP stock analysis video. This is our analyst opinion covering the buy and sell arguments for SAP stock.

SAP SE (ADR) Stock Rating 3.3/5

Our SAP stock opinion is based on fundamentals of the company. This SAP stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy SAP stock?

  • The TTM operating margin was good at 19.1% for SAP.
  • Net margins came in at average 14.8% for SAP over the last twelve months.
  • SAP has an attractive ROIC (Return on Invested Capital) of 11.5%
  • SAP has a good Return On Equity (ROE) of 13.8%.
  • The company has a good Free Cash Flow (FCF) margin of 12.7%.

Should you sell SAP stock?

  • SAP has a debt/equity ratio of  0.29, 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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