Recent News
On November 14, 2025 SAP proposed concessions to address an EU antitrust probe on on‑premise maintenance and support, offering remedies such as easier switching for customers and the removal of reinstatement fees. On December 2, 2025 SAP published a feature on an expanded partnership with the U.S. General Services Administration to accelerate federal cloud modernisation. On January 7, 2026 SAP named David Robinson president of SAP North America, assigning him responsibility for market units and sales across the Americas.
Technical Analysis
ADX at 16.64 indicates no established trend; trend strength remains weak and limits conviction for directional breakout trades relative to the valuation anchor.
DI+ sits at 24.33 and shows an increasing trend, which signals renewed buyer interest against prior selling pressure and supports a near-term bullish tilt versus current price levels.
DI‑ at 26.95 shows a peak‑and‑reversal pattern, which registers as bullish under the directional indicator rules and reinforces the DI+ signal despite ADX weakness.
MACD reads ‑1.32 with the signal at ‑1.29 and shows a peak‑and‑reversal pattern; the MACD position below its signal line indicates bearish momentum and implies downward pressure on price until the MACD begins to increase or crosses above the signal line.
MRO equals 12.94 and sits positive with a peak‑and‑reversal; price sits above the model target, implying potential for a corrective move lower toward fair value established by WMDST.
RSI at 43.11 with a peak‑and‑reversal shows recent momentum loss and remains below neutral, favoring sellers over buyers while remaining far from oversold extremes.
Price at $235.84 trades below the 20‑day ($242.69), 50‑day ($244.47) and 200‑day ($272.10) averages and below the 12‑ and 26‑day EMAs; this alignment against moving averages signals a bearish bias that increases the likelihood of mean reversion moves toward the valuation mean. The close lies below the 1‑sigma lower Bollinger band ($237.96) but above the 2‑sigma lower band ($233.23), placing price near lower volatility limits where short squeezes or technical bounces often occur.
Volume at ~2.08M sits above the 10‑, 50‑ and 200‑day averages, indicating stronger trading interest on recent moves; 42‑day beta ~0.99 and 52‑week beta ~0.88 show market‑correlated volatility but below many high‑growth software peers, which tempers large directional moves.
Fundamental Analysis
EPS outperformed estimates in the most recent report: actual EPS $1.85 versus estimate $1.74, a $0.11 beat equal to a 6.32% surprise. That beat supports the operating performance narrative and factors into the WMDST valuation.
Profitability shows strength: EBIT $3.057B and EBIT margin 33.68%, above the industry peer mean and above the industry peer median for EBIT margin. EBIT margin rose QoQ by 9.76% and YoY by 19.27%, reflecting improving operating leverage on recurring revenue streams.
Operating margin stands at 27.22%, above the industry peer mean and below the industry peer median; gross margin at 73.50% highlights high software economics and substantial operating leverage potential as cloud mix grows.
Top‑line trends show mixed timing: total revenue $9.076B with revenue growth of 0.54% overall, revenue growth QoQ at 250.32% and revenue growth YoY at ‑75.14%. Those figures indicate sharp quarter‑to‑quarter dynamics; combine with improved margin expansion and the EPS beat to view revenue cadence as volatile but margin‑accretive in the reported period.
Cash flow and liquidity remain solid: free cash flow $1.301B, free cash flow yield 0.41% which sits above the industry peer mean, operating cash flow $1.502B, and cash & short‑term investments $9.934B. Free cash to net income equals 64.92%, supporting funding for cloud investments without heavy balance‑sheet strain.
Capital structure remains conservative: total debt $9.121B, debt to assets 13.34%, debt to EBITDA ~2.70x, and interest coverage ~9.8x. These metrics indicate manageable leverage and adequate interest coverage relative to operating cash flow generation.
Return metrics remain modest versus high‑growth software expectations: ROE 4.68% and ROA 2.93%, each slightly below the industry peer mean. Asset turnover at 0.133 is roughly in line with the industry peer mean. The mix of high margins, moderate returns, and large intangible asset base implies earnings quality driven by recurring cloud contracts rather than capex‑intensive growth.
Valuation signals: P/E ~137.94x, forward P/E ~163.38x, price/book ~7.47x, enterprise value / revenue and enterprise multiples appear elevated in absolute terms. Despite those multiples, WMDST values the stock as under‑valued based on normalized cash flow and margin trajectories and the balance‑sheet cushion described above.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-22 |
| NEXT REPORT DATE: | 2026-01-21 |
| CASH FLOW | Begin Period Cash Flow | $ 7.9 B |
| Operating Cash Flow | $ 1.5 B | |
| Capital Expenditures | $ -201.00 M | |
| Change In Working Capital | $ -1.10 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 612.0 M | |
| End Period Cash Flow | $ 8.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 9.1 B | |
| Forward Revenue | $ 2.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.4 B | |
| Depreciation | $ 318.0 M | |
| Depreciation and Amortization | $ 318.0 M | |
| Research and Development | $ 1.6 B | |
| Total Operating Expenses | $ 6.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 6.7 B | |
| EBITDA | $ 3.4 B | |
| EBIT | $ 3.1 B | |
| Operating Income | $ 2.5 B | |
| Interest Income | $ 524.0 M | |
| Interest Expense | $ 312.0 M | |
| Net Interest Income | $ 212.0 M | |
| Income Before Tax | $ 2.7 B | |
| Tax Provision | $ 694.0 M | |
| Tax Rate | 25.3 % | |
| Net Income | $ 2.0 B | |
| Net Income From Continuing Operations | $ 2.1 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.74 | |
| EPS Actual | $ 1.85 | |
| EPS Difference | $ 0.11 | |
| EPS Surprise | 6.322 % | |
| Forward EPS | $ 2.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 68.4 B | |
| Intangible Assets | $ 31.4 B | |
| Net Tangible Assets | $ 11.4 B | |
| Total Current Assets | $ 18.9 B | |
| Cash and Short-Term Investments | $ 9.9 B | |
| Cash | $ 8.6 B | |
| Net Receivables | $ 5.8 B | |
| Inventory | — | |
| Long-Term Investments | $ 4.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 2.1 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 17.1 B | |
| Net Debt | — | |
| Total Debt | $ 9.1 B | |
| Total Liabilities | $ 25.2 B | |
| EQUITY | ||
| Total Equity | $ 42.8 B | |
| Retained Earnings | $ 45.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.76 | |
| Shares Outstanding | 1.165 B | |
| Revenue Per-Share | $ 7.79 | |
| VALUATION | Market Capitalization | $ 319.7 B |
| Enterprise Value | $ 318.9 B | |
| Enterprise Multiple | 94.48 | |
| Enterprise Multiple QoQ | -11.423 % | |
| Enterprise Multiple YoY | 5.338 % | |
| Enterprise Multiple IPRWA | high: 725.943 median: 119.829 mean: 110.122 SAP: 94.48 low: -500.562 |
|
| EV/R | 35.133 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.598 | |
| Asset To Liability | 2.719 | |
| Debt To Capital | 0.176 | |
| Debt To Assets | 0.133 | |
| Debt To Assets QoQ | 4.293 % | |
| Debt To Assets YoY | 1749.653 % | |
| Debt To Assets IPRWA | high: 1.164 mean: 0.271 median: 0.231 SAP: 0.133 low: 0.001 |
|
| Debt To Equity | 0.213 | |
| Debt To Equity QoQ | -0.122 % | |
| Debt To Equity YoY | 1649.343 % | |
| Debt To Equity IPRWA | high: 2.803 mean: 0.498 median: 0.216 SAP: 0.213 low: -1.761 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.468 | |
| Price To Book QoQ | -7.477 % | |
| Price To Book YoY | 20.91 % | |
| Price To Book IPRWA | high: 32.156 mean: 16.083 median: 15.962 SAP: 7.468 low: -17.466 |
|
| Price To Earnings (P/E) | 137.94 | |
| Price To Earnings QoQ | -17.748 % | |
| Price To Earnings YoY | -22.248 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 158.886 median: 153.023 SAP: 137.94 low: -396.374 |
|
| PE/G Ratio | 10.556 | |
| Price To Sales (P/S) | 35.223 | |
| Price To Sales QoQ | -3.917 % | |
| Price To Sales YoY | 17.204 % | |
| Price To Sales IPRWA | high: 95.267 median: 42.816 mean: 42.469 SAP: 35.223 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 163.376 | |
| Forward PE/G | 12.502 | |
| Forward P/S | 143.669 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 19.088 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.133 | |
| Asset Turnover Ratio QoQ | 5.856 % | |
| Asset Turnover Ratio YoY | 9.679 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 SAP: 0.133 mean: 0.131 median: 0.13 low: -0.008 |
|
| Receivables Turnover | 1.571 | |
| Receivables Turnover Ratio QoQ | 19.714 % | |
| Receivables Turnover Ratio YoY | 7.86 % | |
| Receivables Turnover Ratio IPRWA | high: 6.055 mean: 1.737 median: 1.695 SAP: 1.571 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 58.077 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -23.127 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | 187.869 % | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 median: 49.222 mean: 32.932 SAP: -23.127 low: -144.827 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.053 | |
| CapEx To Revenue | -0.022 | |
| CapEx To Depreciation | -0.632 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 42.8 B | |
| Net Invested Capital | $ 42.8 B | |
| Invested Capital | $ 42.8 B | |
| Net Tangible Assets | $ 11.4 B | |
| Net Working Capital | $ 1.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.581 | |
| Current Ratio | 1.105 | |
| Current Ratio QoQ | 7.187 % | |
| Current Ratio YoY | 0.522 % | |
| Current Ratio IPRWA | high: 8.127 mean: 2.142 median: 1.124 SAP: 1.105 low: 0.159 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.703 | |
| Cost Of Debt | 2.609 % | |
| Interest Coverage Ratio | 9.798 | |
| Interest Coverage Ratio QoQ | -5.203 % | |
| Interest Coverage Ratio YoY | -1.282 % | |
| Interest Coverage Ratio IPRWA | high: 225.0 mean: 22.534 SAP: 9.798 median: 6.076 low: -266.667 |
|
| Operating Cash Flow Ratio | 0.128 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 81.204 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.0 % | |
| Revenue Growth | 0.543 % | |
| Revenue Growth QoQ | 250.323 % | |
| Revenue Growth YoY | -75.137 % | |
| Revenue Growth IPRWA | high: 28.215 % mean: 5.24 % median: 4.971 % SAP: 0.543 % low: -13.442 % |
|
| Earnings Growth | 13.068 % | |
| Earnings Growth QoQ | 1037.337 % | |
| Earnings Growth YoY | 10.577 % | |
| Earnings Growth IPRWA | high: 200.0 % SAP: 13.068 % mean: 8.067 % median: 6.422 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 73.502 % | |
| Gross Margin QoQ | 0.226 % | |
| Gross Margin YoY | 0.22 % | |
| Gross Margin IPRWA | high: 90.981 % median: 78.097 % mean: 76.71 % SAP: 73.502 % low: 26.432 % |
|
| EBIT Margin | 33.682 % | |
| EBIT Margin QoQ | 9.763 % | |
| EBIT Margin YoY | 19.266 % | |
| EBIT Margin IPRWA | high: 76.323 % SAP: 33.682 % median: 29.144 % mean: 25.109 % low: -105.646 % |
|
| Return On Sales (ROS) | 27.215 % | |
| Return On Sales QoQ | -0.701 % | |
| Return On Sales YoY | -3.633 % | |
| Return On Sales IPRWA | high: 76.795 % median: 31.435 % SAP: 27.215 % mean: 24.137 % low: -133.444 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.3 B | |
| Free Cash Flow Yield | 0.407 % | |
| Free Cash Flow Yield QoQ | -43.551 % | |
| Free Cash Flow Yield YoY | -20.971 % | |
| Free Cash Flow Yield IPRWA | high: 10.114 % SAP: 0.407 % median: 0.246 % mean: 0.244 % low: -10.76 % |
|
| Free Cash Growth | -45.474 % | |
| Free Cash Growth QoQ | 33.901 % | |
| Free Cash Growth YoY | 1091.042 % | |
| Free Cash Growth IPRWA | high: 368.524 % median: -5.783 % mean: -13.142 % SAP: -45.474 % low: -324.945 % |
|
| Free Cash To Net Income | 0.649 | |
| Cash Flow Margin | 24.052 % | |
| Cash Flow To Earnings | 1.089 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.93 % | |
| Return On Assets QoQ | 24.363 % | |
| Return On Assets YoY | 40.191 % | |
| Return On Assets IPRWA | high: 13.583 % mean: 2.949 % SAP: 2.93 % median: 1.678 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | 5.961 % | |
| Return On Equity (ROE) | 0.047 | |
| Return On Equity QoQ | 13.095 % | |
| Return On Equity YoY | 31.859 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.055 mean: 0.052 SAP: 0.047 low: -0.395 |
|
| DuPont ROE | 4.782 % | |
| Return On Invested Capital (ROIC) | 5.335 % | |
| Return On Invested Capital QoQ | 32.547 % | |
| Return On Invested Capital YoY | -138.514 % | |
| Return On Invested Capital IPRWA | high: 14.226 % SAP: 5.335 % mean: 3.439 % median: 3.218 % low: -12.344 % |
|