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SAP SE (DE:SAP)
XETRA:SAP
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SAP SE (SAP) AI Stock Analysis

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DE:SAP

SAP SE

(XETRA:SAP)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
€271.00
▲(17.01% Upside)
SAP SE's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth, profitability, and cash flow management. However, the technical analysis presents mixed signals with bearish momentum, and the valuation indicates potential overvaluation, which tempers the overall score.
Positive Factors
Strong Financial Position
SAP's robust financial health, characterized by low leverage and a healthy equity ratio, ensures resilience against economic fluctuations and supports sustained growth.
Cash Generation Ability
Strong cash flow growth enhances SAP's financial flexibility, enabling it to invest in growth initiatives and weather potential downturns effectively.
Major Partnership Expansion
The expanded partnership with AWS on sovereign cloud solutions strengthens SAP's market position in Europe, catering to digital sovereignty needs and driving long-term growth.
Negative Factors
EU Antitrust Probe
The EU antitrust investigation could lead to regulatory challenges and potential fines, impacting SAP's operations and competitive positioning in the long term.
Competitive Pressure
The antitrust probe highlights competitive pressures in the software support market, which may force SAP to alter its business practices, affecting profitability.
Potential Overvaluation Concerns
Perceived overvaluation could limit stock price appreciation and investor interest, impacting SAP's ability to raise capital or pursue strategic investments.

SAP SE (SAP) vs. iShares MSCI Germany ETF (EWG)

SAP SE Business Overview & Revenue Model

Company DescriptionSAP SE (SAP) is a German multinational software corporation that specializes in enterprise resource planning (ERP) software and related services. Founded in 1972, SAP provides a comprehensive suite of applications for businesses of all sizes, enabling them to manage operations, financials, human resources, supply chains, and customer relations efficiently. The company operates in various sectors including manufacturing, healthcare, finance, and retail, offering both on-premise and cloud solutions to enhance business processes and drive digital transformation.
How the Company Makes MoneySAP generates revenue primarily through software licensing, cloud subscriptions, and consulting services. The software licensing model allows companies to purchase licenses for SAP's ERP and other applications, while the cloud subscription model enables customers to access SAP solutions via the cloud on a recurring basis, providing a more predictable revenue stream. Additionally, SAP earns revenue from consulting services that assist organizations in implementing and optimizing its software solutions. Significant partnerships with major tech companies and a growing ecosystem of third-party developers further enhance SAP's revenue potential by integrating their solutions with SAP's offerings and expanding market reach.

SAP SE Financial Statement Overview

Summary
SAP SE's financial performance is robust, highlighted by strong revenue growth, high profitability, and effective cash flow management. The company has low leverage and a healthy equity ratio, indicating financial stability and a strong position for sustained growth.
Income Statement
88
Very Positive
SAP SE has demonstrated strong revenue growth of 5.0% over the past year, with impressive gross and EBIT margins of 73.7% and 26.8% respectively for the TTM. Net profit margin at 18.2% indicates robust profitability. The company has maintained consistent revenue growth over the years, showcasing its competitive edge in the software industry.
Balance Sheet
85
Very Positive
The balance sheet reveals a healthy equity ratio of 59.9%, signifying financial stability. The debt-to-equity ratio is 0.21, indicating low leverage, which reduces financial risk. Return on equity at 16.0% for the TTM reflects efficient use of equity to generate profits. The company maintains a strong asset base, crucial for future growth.
Cash Flow
82
Very Positive
SAP SE's operating cash flow to net income ratio of 1.11 indicates solid cash generation relative to earnings. The free cash flow grew significantly by 46.1% from the previous year, enhancing financial flexibility. The free cash flow to net income ratio of 0.99 suggests that the company effectively converts its earnings into cash, supporting its operations and growth initiatives.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue35.89B34.18B31.21B29.52B26.95B27.34B
Gross Profit26.41B24.93B22.53B21.48B19.73B19.45B
EBITDA11.14B6.47B7.16B6.32B10.33B9.41B
Net Income6.54B3.12B6.14B2.28B5.26B5.14B
Balance Sheet
Total Assets68.40B74.12B68.33B72.16B71.17B58.46B
Cash, Cash Equivalents and Short-Term Investments10.18B11.24B11.28B9.70B11.66B6.95B
Total Debt8.75B10.65B8.79B13.09B15.14B15.46B
Total Liabilities27.00B28.31B24.93B29.31B29.65B28.54B
Stockholders Equity41.00B45.44B43.16B40.19B38.85B29.72B
Cash Flow
Free Cash Flow6.46B4.42B5.55B4.77B5.42B6.38B
Operating Cash Flow7.25B5.22B6.33B5.65B6.22B7.19B
Investing Cash Flow-449.00M-667.00M906.00M667.00M-3.06B-2.99B
Financing Cash Flow-6.35B-3.40B-7.73B-6.34B-56.00M-4.00B

SAP SE Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price231.60
Price Trends
50DMA
233.01
Positive
100DMA
246.12
Negative
200DMA
248.95
Negative
Market Momentum
MACD
-0.02
Negative
RSI
57.84
Neutral
STOCH
81.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SAP, the sentiment is Neutral. The current price of 231.6 is above the 20-day moving average (MA) of 225.20, below the 50-day MA of 233.01, and below the 200-day MA of 248.95, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 81.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:SAP.

SAP SE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€1.77B38.5974.27%1.91%10.61%12.46%
68
Neutral
€12.68B68.1523.55%0.50%25.33%6.58%
67
Neutral
€270.30B41.0415.83%1.00%10.29%159.53%
67
Neutral
€1.36B10.82179.08%9.74%26.28%
63
Neutral
€788.59M26.2235.14%3.95%-16.41%-1.83%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:SAP
SAP SE
235.00
29.01
14.08%
DE:AOF
ATOSS Software
111.80
-19.25
-14.69%
DE:NEM
Nemetschek
110.00
13.69
14.22%
DE:TMV
TeamViewer AG
8.74
-2.96
-25.30%
DE:MUM
Mensch und Maschine Software SE
47.95
-4.43
-8.46%
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.Date of analysis: Oct 01, 2025