SAP SE (DE:SAP)
XETRA:SAP
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SAP SE
(XETRA:SAP)
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Rating:67Neutral
Price Target:
€151.00
▲(8.24% Upside)
Action:ReiteratedDate:01/31/26
The score is primarily supported by strong financial performance (high margins, improved 2025 profitability, solid free cash flow, and reduced leverage). This is meaningfully offset by weak technicals, with the stock trading below all key moving averages and negative momentum indicators. Valuation is moderately premium with only modest support from the dividend yield.
Positive Factors
High gross & operating margins
SAP's software economics produce very high gross margins and a material 2025 step-up in operating profitability. Persistently strong margins give the company durable cash generation, funding R&D, cloud investments and shareholder returns while insulating profit resilience versus peers.
Negative Factors
Earnings & cash-flow volatility
Material swings in net income and cash flow across recent years undermine predictability for capital allocation and operational planning. Even with a strong 2025, recurring volatility can complicate budgeting, weaken investor confidence and raise the cost of raising capital when needed.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross & operating margins
SAP's software economics produce very high gross margins and a material 2025 step-up in operating profitability. Persistently strong margins give the company durable cash generation, funding R&D, cloud investments and shareholder returns while insulating profit resilience versus peers.
Read all positive factors
SAP SE (SAP) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€162.87B
Dividend Yield1.13%
Average Volume (3M)1.54M
Price to Earnings (P/E)33.2
Beta (1Y)1.00
Revenue Growth9.70%
EPS Growth161.70%
CountryDE
Employees108,187
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.62
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
€238.18Price Target Upside70.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)7.19
Revenue Forecast (FY)€40.34B
SAP SE Business Overview & Revenue Model
Company Description
SAP SE, together with its subsidiaries, operates as an enterprise application software company worldwide. The company operates through three segments: Applications, Technology & Support; Qualtrics; and Services. It offers SAP S/4HANA, an ERP suite...
How the Company Makes Money
SAP primarily generates revenue through (1) cloud subscription and support fees, and (2) software licenses and related support and services. Cloud revenue is largely recurring and comes from subscription contracts for SAP’s cloud applications and ...
SAP SE Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.80B | 34.18B | 31.21B | 29.52B | 26.95B |
| Gross Profit | 27.04B | 24.93B | 22.53B | 21.48B | 19.73B |
| EBITDA | 13.17B | 6.47B | 7.16B | 6.32B | 10.33B |
| Net Income | 7.33B | 3.12B | 6.14B | 2.28B | 5.26B |
Balance Sheet | |||||
| Total Assets | 70.36B | 74.12B | 68.33B | 72.16B | 71.17B |
| Cash, Cash Equivalents and Short-Term Investments | 9.77B | 11.24B | 11.28B | 9.70B | 11.66B |
| Total Debt | 8.07B | 10.65B | 8.79B | 13.09B | 15.14B |
| Total Liabilities | 25.13B | 28.31B | 24.93B | 29.31B | 29.65B |
| Stockholders Equity | 44.75B | 45.44B | 43.16B | 40.19B | 38.85B |
Cash Flow | |||||
| Free Cash Flow | 8.26B | 4.42B | 5.55B | 4.77B | 5.42B |
| Operating Cash Flow | 9.00B | 5.22B | 6.33B | 5.65B | 6.22B |
| Investing Cash Flow | -1.39B | -667.00M | 906.00M | 667.00M | -3.06B |
| Financing Cash Flow | -8.17B | -3.40B | -7.73B | -6.34B | -56.00M |
SAP SE Technical Analysis
Negative
139.50
Price Trends
163.96
Negative
185.02
Negative
211.29
Negative
Market Momentum
-6.71
Positive
30.41
Neutral
35.52
Neutral
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 139.5 is below the 20-day moving average (MA) of 153.38, below the 50-day MA of 163.96, and below the 200-day MA of 211.29, indicating a bearish trend. The MACD of -6.71 indicates Positive momentum. The RSI at 30.41 is Neutral, neither overbought nor oversold. The STOCH value of 35.52 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | €1.19B | 37.95 | 58.60% | 1.88% | 10.61% | 12.46% | |
67 Neutral | €162.87B | 33.16 | 16.82% | 1.13% | 9.70% | 161.70% | |
64 Neutral | €117.15M | 15.51 | 23.52% | 0.63% | 4.70% | -0.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | €705.34M | -4.16 | -26.06% | ― | 9.19% | -37.73% |
* General Sector Average
DE:SAP
SAP SE
139.50
-83.29
-37.38%
DE:AOF
ATOSS Software
74.50
-50.45
-40.38%
DE:MSGL
msg life
3.84
0.62
19.25%
DE:PSAN
PSI AG fuer Produkte und Systeme der Informationstechnologie
45.00
21.00
87.50%
DE:SJJ
Serviceware SE
12.45
-1.25
-9.12%
DE:FAA
Fabasoft AG
10.65
-5.16
-32.62%
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.