# SAP Se (SAP.XETRA)

Canonical: https://gigainvestors.com/s/SAP.XETRA

Analysis as of: 2026-10-16T07:33:31.867Z. Financial observations: FY1996–FY2026.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 201.25 per share; close as of 2026-10-15.

Estimated value: low EUR 62.11 per share, central EUR 69.59 per share, high EUR 79.56 per share. Buy at or below the central value EUR 69.59 per share. Valuation as of 2026-10-16T07:33:31.867Z; scenarios are not confidence intervals.

Expected annual return: 5.2% at the stated quote. About 5.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; DE 10-year bond 3.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.23×

- FY2019: 0.23×

- FY2020: 0.24×

- FY2021: 0.23×

- FY2022: 0.15×

- FY2023: 0.21×

- FY2024: 0.14×

- FY2025: 0.26×

- LTM to Jun 2026: 0.27×

### moat: pass

- ROIC, median of available years: 46.7%

- ROIC, second-lowest year: 28.9%

- Typical minus recent gross margin: -1.8 pp

- Typical gross margin (annual median): 71.1%

- Recent gross margin (lower of latest and 3-year median): 72.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 12.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 54.3%

- FY2017: 71.2%

- FY2018: 56.9%

- FY2019: 48.2%

- FY2020: 45.3%

- FY2021: 44.7%

- FY2022: 28.9%

- FY2023: 38.3%

- FY2024: 22.5%

- FY2025: 48.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.10×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 25B

- Net income, five-year total: EUR 22B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -5.1 pp

- Working capital / revenue, final three-year average: 18.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.06×

- FY2022: 1.41×

- FY2023: 1.07×

- FY2024: 1.04×

- FY2025: 1.03×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 56.9% vs 38.3%

- Per-share earnings: 3.04 to 3.05 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: EUR 146B

- Cumulative retained earnings: EUR 25B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.0%

- Per-share value change: EUR 0.01

- Per-share value, starting three-year median: EUR 3.04

- Per-share value, ending three-year median: EUR 3.05

- Buybacks concentrated in cheaper years (correlation): 0.29

- Average buyback yield: 0.8%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 17B

- Cumulative net income, 10 years: EUR 43B

- ROIC, first three-year median: 56.9%

- ROIC, last three-year median: 38.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 3.04

- FY2017: EUR 3.36

- FY2018: EUR 3.42

- FY2019: EUR 2.78

- FY2020: EUR 4.35

- FY2021: EUR 4.46

- FY2022: EUR 2.80

- FY2023: EUR 3.05

- FY2024: EUR 2.65

- FY2025: EUR 6.09

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -2.8%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 18.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.28×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.70×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.2%

- FY2017: -2.4%

- FY2018: -0.4%

- FY2019: -0.3%

- FY2020: -3.5%

- FY2021: -1.4%

- FY2022: -3.3%

- FY2023: -3.9%

- FY2024: -2.8%

- FY2025: -2.8%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 25% since Jan 2025 · "SAP falls as Goldman lowers gross margin forecast on rising hardware costs" (finance.yahoo.com, Jun 2026) · sales +3.8%

Story as of 2026-10-16T09:59:56.577Z; price observation 2026-10-15.

Price needs cash profits to grow 15.4% a year for ten years

- 2025-04-22: SAP Earnings Top Views On Strong Cloud Computing Growth ([finance.yahoo.com](https://finance.yahoo.com/m/7ce6a90a-1807-3901-bed5-eb6cfeaecc0c/sap-earnings-top-views-on.html))

- 2025-07-22: SAP reports mixed Q2 results as cloud revenue slows ([finance.yahoo.com](https://finance.yahoo.com/news/sap-reports-mixed-q2-results-210524886.html))

- 2026-06-10: SAP falls as Goldman lowers gross margin forecast on rising hardware costs ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sap-falls-goldman-lowers-gross-111436765.html))

- 2026-07-03: Why SAP (XTRA:SAP) Is Up 7.1% After AI-Focused Overhaul And New Consumption-Based Pricing ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/why-sap-xtra-sap-7-171352512.html))

### Sales · FY2025–2026

sales +3.8%; source https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm; observed 2026-02-26.

- FY2017: EUR 23B 

- FY2018: EUR 25B 

- FY2019: EUR 28B 

- FY2020: EUR 27B 

- FY2021: EUR 27B 

- FY2022: EUR 31B 

- FY2023: EUR 31B 

- FY2024: EUR 34B 

- FY2025: EUR 37B 

- FY2026: EUR 38B 

### Gross margin · FY2025

gross margin 72.9%; source https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm; observed 2026-02-26.

- FY2016: 70.2% 

- FY2017: 69.9% 

- FY2018: 69.8% 

- FY2019: 69.7% 

- FY2020: 71.2% 

- FY2021: 73.2% 

- FY2022: 71.1% 

- FY2023: 72.4% 

- FY2024: 73.0% 

- FY2025: 72.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are EUR 36.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm (filed 2026-02-26); FY2025: revenue 36800000000; grossProfit 26814000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SAP.XETRA: SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide. It offers SAP Business AI; 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, time, payroll, talent and employee experience management, and analytics and planning; 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 business process operations; industry solutions that provide customers and partners with industry-specific solutions; and SAP LeanIX to visualize enterprise architecture, assess interdependencies and the potential impact of IT modernization, and manage the transition toward the target landscape. Further, the company provides WalkMe to execute workflows; SAP Enable Now, which offers e-learning content embedded in SAP workflows; Taulia solutions for working capital management; and sustainability solutions and services. Additionally, it provides services and support solutions. The company has a strategic collaboration with Fresenius SE & Co. KGaA and Avelios Medical GmbH for the development of a cloud-native, hospital information system that enables digitalization of clinical and administrative processes with AI integration. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

### Why customers stay

Margins ranged from 72.4% to 73% during 2023–25; it earns 46.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 72.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 73%.

- Source: https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 72.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.5429196017450741],[2017,0.7118488528508525],[2018,0.5685702338690801],[2019,0.48173217654630235],[2020,0.4530385571221181],[2021,0.4471979450259958],[2022,0.2893017052491188],[2023,0.3830330254479796],[2024,0.22505036496913775],[2025,0.48573796377205636]]; median 0.4673853668342102. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 1.9 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 1001000000; owner earnings 3909000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 3000000; upkeep 1272000000; owner earnings 4008000000. Growth capex / owner earnings = 0.0007485029940119761.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 96000000; upkeep 1362000000; owner earnings 4083000000. Growth capex / owner earnings = 0.02351212343864805.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 817000000; owner earnings 4376000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 816000000; owner earnings 5736000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 800000000; owner earnings 5564400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 874000000; owner earnings 4635000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 785000000; owner earnings 3861800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 797000000; owner earnings 3264000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 739000000; owner earnings 7396200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,1378000000],[2017,1499000000],[2018,1671000000],[2019,1790000000],[2020,1864000000],[2021,2182000000],[2022,2865000000],[2023,2395000000],[2024,2565000000],[2025,2743000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm (filed 2026-02-26); FY2025: cash repurchases 1937000000 EUR.

### Are managers owners

Insiders own 10.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SAP.XETRA SharesStats.PercentInsiders = 10.591000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15.4% yearly over ten years; actual growth was 7.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.20909543417023924. Price 201.25; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.1000834028356965 → FY2025 6.29463829787234. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 80.24 per share

- 2016-11: EUR 78.88 per share

- 2016-12: EUR 82.81 per share

- 2017-01: EUR 84.63 per share

- 2017-02: EUR 87.95 per share

- 2017-03: EUR 91.98 per share

- 2017-04: EUR 92.07 per share

- 2017-05: EUR 95.44 per share

- 2017-06: EUR 91.45 per share

- 2017-07: EUR 89.68 per share

- 2017-08: EUR 88.10 per share

- 2017-09: EUR 92.69 per share

- 2017-10: EUR 97.66 per share

- 2017-11: EUR 94.65 per share

- 2017-12: EUR 93.45 per share

- 2018-01: EUR 90.83 per share

- 2018-02: EUR 86.20 per share

- 2018-03: EUR 84.97 per share

- 2018-04: EUR 92.42 per share

- 2018-05: EUR 96.34 per share

- 2018-06: EUR 98.95 per share

- 2018-07: EUR 99.85 per share

- 2018-08: EUR 103.62 per share

- 2018-09: EUR 106.00 per share

- 2018-10: EUR 94.66 per share

- 2018-11: EUR 90.92 per share

- 2018-12: EUR 86.93 per share

- 2019-01: EUR 90.25 per share

- 2019-02: EUR 94.20 per share

- 2019-03: EUR 103.00 per share

- 2019-04: EUR 114.58 per share

- 2019-05: EUR 110.42 per share

- 2019-06: EUR 120.76 per share

- 2019-07: EUR 111.72 per share

- 2019-08: EUR 108.60 per share

- 2019-09: EUR 107.88 per share

- 2019-10: EUR 118.80 per share

- 2019-11: EUR 123.48 per share

- 2019-12: EUR 120.32 per share

- 2020-01: EUR 117.82 per share

- 2020-02: EUR 111.56 per share

- 2020-03: EUR 102.80 per share

- 2020-04: EUR 108.94 per share

- 2020-05: EUR 113.50 per share

- 2020-06: EUR 124.32 per share

- 2020-07: EUR 133.78 per share

- 2020-08: EUR 138.04 per share

- 2020-09: EUR 132.76 per share

- 2020-10: EUR 91.49 per share

- 2020-11: EUR 101.98 per share

- 2020-12: EUR 107.22 per share

- 2021-01: EUR 104.80 per share

- 2021-02: EUR 102.06 per share

- 2021-03: EUR 104.42 per share

- 2021-04: EUR 116.76 per share

- 2021-05: EUR 113.52 per share

- 2021-06: EUR 118.84 per share

- 2021-07: EUR 120.84 per share

- 2021-08: EUR 127.46 per share

- 2021-09: EUR 116.88 per share

- 2021-10: EUR 125.32 per share

- 2021-11: EUR 113.18 per share

- 2021-12: EUR 124.90 per share

- 2022-01: EUR 110.40 per share

- 2022-02: EUR 101.32 per share

- 2022-03: EUR 101.12 per share

- 2022-04: EUR 97.56 per share

- 2022-05: EUR 92.79 per share

- 2022-06: EUR 86.93 per share

- 2022-07: EUR 90.68 per share

- 2022-08: EUR 84.94 per share

- 2022-09: EUR 84.12 per share

- 2022-10: EUR 97.67 per share

- 2022-11: EUR 104.46 per share

- 2022-12: EUR 96.39 per share

- 2023-01: EUR 108.38 per share

- 2023-02: EUR 107.48 per share

- 2023-03: EUR 116.06 per share

- 2023-04: EUR 122.86 per share

- 2023-05: EUR 122.18 per share

- 2023-06: EUR 125.14 per share

- 2023-07: EUR 124.40 per share

- 2023-08: EUR 128.82 per share

- 2023-09: EUR 122.82 per share

- 2023-10: EUR 126.74 per share

- 2023-11: EUR 145.48 per share

- 2023-12: EUR 139.48 per share

- 2024-01: EUR 160.80 per share

- 2024-02: EUR 172.88 per share

- 2024-03: EUR 180.46 per share

- 2024-04: EUR 169.70 per share

- 2024-05: EUR 165.96 per share

- 2024-06: EUR 189.52 per share

- 2024-07: EUR 195.02 per share

- 2024-08: EUR 197.72 per share

- 2024-09: EUR 204.40 per share

- 2024-10: EUR 214.80 per share

- 2024-11: EUR 224.90 per share

- 2024-12: EUR 236.30 per share

- 2025-01: EUR 268.50 per share

- 2025-02: EUR 265.30 per share

- 2025-03: EUR 244.40 per share

- 2025-04: EUR 255.30 per share

- 2025-05: EUR 265.90 per share

- 2025-06: EUR 258.15 per share

- 2025-07: EUR 250.80 per share

- 2025-08: EUR 231.70 per share

- 2025-09: EUR 227.90 per share

- 2025-10: EUR 224.45 per share

- 2025-11: EUR 208.55 per share

- 2025-12: EUR 208.35 per share

- 2026-01: EUR 170.56 per share

- 2026-02: EUR 170.96 per share

- 2026-03: EUR 146.90 per share

- 2026-04: EUR 145.50 per share

- 2026-05: EUR 155.26 per share

- 2026-06: EUR 134.00 per share

- 2026-07: EUR 157.68 per share

- 2026-08: EUR 190.90 per share

- 2026-09: EUR 185.66 per share

- 2026-10: EUR 197.28 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 44.19 per share, central EUR 53.17 per share, high EUR 61.50 per share

- FY2017: low EUR 42.19 per share, central EUR 47.48 per share, high EUR 54.53 per share

- FY2018: low EUR 50.82 per share, central EUR 61.49 per share, high EUR 70.55 per share

- FY2019: low EUR 51.85 per share, central EUR 64.40 per share, high EUR 74.50 per share

- FY2020: low EUR 48.60 per share, central EUR 54.56 per share, high EUR 62.48 per share

- FY2021: low EUR 52.09 per share, central EUR 57.97 per share, high EUR 65.81 per share

- FY2022: low EUR 55.33 per share, central EUR 61.89 per share, high EUR 70.62 per share

- FY2023: low EUR 54.94 per share, central EUR 61.27 per share, high EUR 69.70 per share

- FY2024: low EUR 56.47 per share, central EUR 63.03 per share, high EUR 71.75 per share

- FY2025: low EUR 59.09 per share, central EUR 66.17 per share, high EUR 75.61 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:17.270Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1000184/000110465926020058/sap-20251231x20f.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.