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SAP SE ADR (SAP)
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Upturn Advisory Summary
12/06/2024: SAP (4-star) is a STRONG-BUY. BUY since 141 days. Profits (31.82%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 85.52% | Upturn Advisory Performance 4 | Avg. Invested days: 59 |
Profits based on simulation | Stock Returns Performance 4 | Last Close 12/06/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 85.52% | Avg. Invested days: 59 |
Upturn Star Rating | Stock Returns Performance 4 |
Profits based on simulation Last Close 12/06/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 296.10B USD |
Price to earnings Ratio 101.85 | 1Y Target Price 263.76 |
Dividends yield (FY) 0.96% | Basic EPS (TTM) 2.45 |
Volume (30-day avg) 828965 | Beta 0.87 |
52 Weeks Range 146.54 - 256.13 | Updated Date 12/12/2024 |
Company Size Large-Cap Stock | Market Capitalization 296.10B USD | Price to earnings Ratio 101.85 | 1Y Target Price 263.76 |
Dividends yield (FY) 0.96% | Basic EPS (TTM) 2.45 | Volume (30-day avg) 828965 | Beta 0.87 |
52 Weeks Range 146.54 - 256.13 | Updated Date 12/12/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.25% | Operating Margin (TTM) 26.59% |
Management Effectiveness
Return on Assets (TTM) 7.13% | Return on Equity (TTM) 6.46% |
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 101.85 | Forward PE 37.31 |
Enterprise Value 294215807334 | Price to Sales(TTM) 8.9 |
Enterprise Value to Revenue 8.4 | Enterprise Value to EBITDA 44.92 |
Shares Outstanding 1166499968 | Shares Floating 989176100 |
Percent Insiders - | Percent Institutions 6.19 |
Trailing PE 101.85 | Forward PE 37.31 | Enterprise Value 294215807334 | Price to Sales(TTM) 8.9 |
Enterprise Value to Revenue 8.4 | Enterprise Value to EBITDA 44.92 | Shares Outstanding 1166499968 | Shares Floating 989176100 |
Percent Insiders - | Percent Institutions 6.19 |
Analyst Ratings
Rating 3.93 | Target Price 158.53 | Buy 6 |
Strong Buy 5 | Hold 3 | Sell - |
Strong Sell 1 |
Rating 3.93 | Target Price 158.53 | Buy 6 | Strong Buy 5 |
Hold 3 | Sell - | Strong Sell 1 |
AI Summarization
SAP SE ADR: Comprehensive Overview
Company Profile:
Detailed history and background:
- Founded in 1972 as System Analysis Program Development, originally focused on real-time data processing.
- Evolved into a leading global provider of enterprise resource planning (ERP) software, serving over 100,000 customers worldwide.
- Acquired numerous companies, including Sybase, Ariba, SuccessFactors, and Qualtrics, expanding its portfolio and reach.
- Listed on the Frankfurt Stock Exchange (primary listing) and the New York Stock Exchange (ADR symbol: SAP).
Core business areas:
- Cloud-based solutions: Offering a comprehensive suite of cloud-based applications for various business functions, including finance, human resources, supply chain, and customer relationship management.
- On-premise solutions: Providing on-premise ERP software and related services for organizations with specific needs or infrastructure limitations.
- Database and technology solutions: Offering Hana, a high-performance in-memory database, and other technology solutions for data management and analytics.
Leadership team and corporate structure:
- CEO: Christian Klein
- CFO: Luka Mucic
- Chairman of the Supervisory Board: Hasso Plattner
- Two-tier board structure with a Management Board and a Supervisory Board.
Top Products and Market Share:
Top products and offerings:
- SAP S/4HANA: Cloud-based ERP suite for intelligent business operations.
- SAP SuccessFactors: Cloud-based human capital management solutions.
- SAP Ariba: Cloud-based procurement solutions.
- SAP Concur: Cloud-based travel and expense management solutions.
- SAP Customer Experience: Cloud-based customer relationship management solutions.
Market share:
- Global leader in the ERP market with a market share of approximately 25%.
- Significant presence in the cloud ERP market with a growing share.
- Strong market positions in other segments like human capital management and customer relationship management.
Product performance and market reception:
- SAP's products are generally well-received by customers, with high satisfaction ratings.
- The company continuously invests in innovation and development to stay ahead of the competition.
- Some concerns exist regarding the complexity of implementation and the cost of SAP solutions.
Total Addressable Market:
The global market for enterprise application software is estimated to be worth over $200 billion. This market is expected to grow steadily in the coming years, driven by digital transformation initiatives and cloud adoption.
Financial Performance:
- Revenue: Growing steadily, reaching €30.9 billion in 2022.
- Net income: Stable, around €5.0 billion in 2022.
- Profit margins: Operating margin around 26% in 2022.
- Earnings per share (EPS): €5.95 in 2022.
- Cash flow: Strong cash flow generation, with over €7 billion in 2022.
- Balance sheet: Solid financial position with low debt levels.
Dividends and Shareholder Returns:
Dividend history:
- Regular dividend payer with a current dividend yield of around 1.5%.
- Consistent dividend increases in recent years.
Shareholder returns:
- Strong long-term total shareholder returns, with an average annual return of over 10% in the past 10 years.
Growth Trajectory:
- Historical growth driven by cloud adoption and expansion into new markets.
- Future growth expected from continued cloud momentum, product innovation, and strategic partnerships.
- Recent product launches and initiatives like RISE with SAP are expected to drive further growth.
Market Dynamics:
- The ERP market is undergoing rapid transformation, with a shift towards cloud-based solutions.
- Intense competition from other vendors like Oracle, Microsoft, and Salesforce.
- Technological advancements like artificial intelligence and machine learning are creating new opportunities and challenges.
Competitors:
- Oracle (ORCL)
- Microsoft (MSFT)
- Salesforce (CRM)
- Workday (WDAY)
- Infor (INFA)
Market share comparison:
- SAP has a leading market share in the ERP market, followed by Oracle and Microsoft.
- Competition is fierce in the cloud ERP segment, with each vendor vying for market share.
Competitive advantages and disadvantages:
Advantages:
- Strong brand recognition and reputation.
- Comprehensive product portfolio with a focus on innovation.
- Large customer base and global reach.
- Strong financial position.
Disadvantages:
- Complex and expensive solutions.
- Integration challenges for large enterprises.
- Intense competition from other vendors.
Potential Challenges and Opportunities:
Challenges:
- Maintaining innovation and competitiveness in a rapidly changing market.
- Managing the transition to cloud-based solutions.
- Addressing concerns about the complexity and cost of SAP solutions.
Opportunities:
- Expanding cloud adoption and market share.
- Leveraging data and analytics to provide new insights and value to customers.
- Partnering with other technology vendors to offer integrated solutions.
Recent Acquisitions (last 3 years):
- Signavio (2023): Acquired for $1.2 billion. A leading provider of business process management (BPM) software, which complements SAP's existing offerings and strengthens its process automation capabilities.
- Taulia (2022): Acquired for $2.4 billion. A leading provider of working capital management solutions, which complements SAP's Ariba procurement solutions and expands its offering in supply chain finance.
- Emarsys (2021): Acquired for $540 million. A leading provider of omnichannel customer engagement solutions, which enhances SAP's customer experience portfolio and strengthens its position in the marketing automation space.
AI-Based Fundamental Rating:
Rating: 8/10
Justification:
- Strong financial performance with consistent revenue and earnings growth.
- Leading market position in the ERP market with a strong cloud strategy.
- Solid product portfolio with continuous innovation and development.
- Potential for further growth through cloud adoption and expansion into new markets.
- Some concerns about competitive pressures and the complexity of SAP solutions.
Sources and Disclaimers:
- Sources: SAP website, annual reports, financial filings, market research reports.
- Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About SAP SE ADR
Exchange | NYSE | Headquaters | - |
IPO Launch date | 1998-08-07 | CEO & Member of Executive Board | Mr. Christian Klein |
Sector | Technology | Website | https://www.sap.com |
Industry | Software - Application | Full time employees | 107583 |
Headquaters | - | ||
CEO & Member of Executive Board | Mr. Christian Klein | ||
Website | https://www.sap.com | ||
Website | https://www.sap.com | ||
Full time employees | 107583 |
SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.
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