SAP SE (DE:SAP)
XETRA:SAP
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SAP SE
(XETRA:SAP)
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Rating:76Outperform
Price Target:
€158.00
▲(1.13% Upside)
Action:Upgraded
Date:06/02/26
The score is led by strong financial performance (materially improved margins, solid balance sheet, and robust free cash flow), supported by positive but not fully long-term-confirmed technicals (above key short/medium-term averages but below the 200-day). Valuation is reasonable but not cheap at a ~24 P/E with a modest dividend yield.
Positive Factors
Improved profitability and margins
SAP’s materially improved profitability—TTM net margin ~20% and EBIT margin >30%—reflects stronger operating leverage and pricing power in core enterprise suites. Higher, sustainable margins increase free cash generation capacity and provide resilience across economic cycles.
Negative Factors
Inconsistent revenue growth trend
While recent TTM revenue looks strong, the growth signal is uneven versus prior annual trends, indicating potential volatility in new bookings or cloud migration timing. Inconsistent top-line momentum can complicate planning and pressure long-term forecast credibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and margins
SAP’s materially improved profitability—TTM net margin ~20% and EBIT margin >30%—reflects stronger operating leverage and pricing power in core enterprise suites. Higher, sustainable margins increase free cash generation capacity and provide resilience across economic cycles.
Read all positive factors
SAP SE (SAP) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€163.76B
Dividend Yield1.13%
Average Volume (3M)1.54M
Price to Earnings (P/E)22.3
Beta (1Y)1.01
Revenue Growth6.24%
EPS Growth30.65%
CountryDE
Employees108,187
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)6.41
Shares Outstanding1,228,504,300
10 Day Avg. Volume1,114,652
30 Day Avg. Volume1,544,298
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)5.43
Price to Sales (P/S)6.60
P/FCF Ratio29.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€205.59Price Target Upside31.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)7.22
Revenue Forecast (FY)€40.16B
SAP SE Business Overview & Revenue Model
Company Description
Globally, SAP SE stands as a leading provider of enterprise application software, organized into three core divisions: Applications, Technology & Support; Qualtrics; and Services. The company's extensive product suite features SAP S/4HANA, an adva...
How the Company Makes Money
SAP primarily makes money from (1) software subscriptions (especially cloud subscriptions), (2) software licenses (historically important, with ongoing revenue from maintenance/support), and (3) services. The largest and most strategic revenue str...
SAP SE Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.34B | 36.80B | 34.18B | 31.21B | 29.52B | 26.95B |
| Gross Profit | 27.33B | 27.04B | 24.93B | 22.53B | 21.48B | 19.73B |
| EBITDA | 13.42B | 13.17B | 6.47B | 7.16B | 6.32B | 10.33B |
| Net Income | 7.48B | 7.33B | 3.12B | 6.14B | 2.28B | 5.26B |
Balance Sheet | ||||||
| Total Assets | 73.46B | 70.36B | 74.12B | 68.33B | 72.16B | 71.17B |
| Cash, Cash Equivalents and Short-Term Investments | 10.04B | 9.77B | 11.24B | 11.28B | 9.70B | 11.66B |
| Total Debt | 0.00 | 8.07B | 10.65B | 8.79B | 13.09B | 15.14B |
| Total Liabilities | 28.10B | 25.13B | 28.31B | 24.93B | 29.31B | 29.65B |
| Stockholders Equity | 44.86B | 44.75B | 45.44B | 43.16B | 40.19B | 38.85B |
Cash Flow | ||||||
| Free Cash Flow | 8.03B | 8.26B | 4.42B | 5.55B | 4.77B | 5.42B |
| Operating Cash Flow | 8.84B | 9.00B | 5.22B | 6.33B | 5.65B | 6.22B |
| Investing Cash Flow | -356.00M | -1.39B | -667.00M | 906.00M | 667.00M | -3.06B |
| Financing Cash Flow | -9.84B | -8.17B | -3.40B | -7.73B | -6.34B | -56.00M |
SAP SE Technical Analysis
Negative
156.24
Price Trends
148.30
Negative
156.74
Negative
185.69
Negative
Market Momentum
-0.89
Positive
42.85
Neutral
7.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SAP, the sentiment is Negative. The current price of 156.24 is above the 20-day moving average (MA) of 153.71, above the 50-day MA of 148.30, and below the 200-day MA of 185.69, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SAP.
SAP SE Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €163.76B | 22.26 | 17.25% | 1.13% | 6.24% | 30.65% | |
75 Outperform | €143.55M | 14.52 | 23.52% | 0.63% | 3.67% | 18.47% | |
70 Outperform | €1.19B | 24.40 | 58.60% | 1.88% | 10.92% | 6.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | €710.04M | -30.44 | -26.06% | ― | 9.19% | -37.73% |
* General Sector Average
DE:SAP
SAP SE
143.18
-109.97
-43.44%
DE:AOF
ATOSS Software
74.20
-59.05
-44.32%
DE:MSGL
msg life
3.86
0.44
12.87%
DE:PSAN
PSI AG fuer Produkte und Systeme der Informationstechnologie
45.20
16.70
58.60%
DE:SJJ
Serviceware SE
12.30
-2.70
-18.00%
DE:FAA
Fabasoft AG
14.10
-2.25
-13.77%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.