SAP SE (NYSE:SAP) Launches €10B Buyback Amid Cloud Momentum And Valuation Pressure

SAP shows operational momentum in its cloud portfolio while valuation measures and long-term averages signal constrained upside near term.

Recent News

On November 14, 2025 SAP reaffirmed its commitment to fair competition amid an EU review. On November 18, 2025 the company expanded partnerships in France’s AI ecosystem with Bleu, Capgemini and Mistral AI. On November 27, 2025 SAP introduced an EU AI Cloud sovereign offering for customers seeking European data-sovereignty options. On December 2, 2025 SAP updated its pricelist and will stop new sales of Business ByDesign to net-new customers effective April 20, 2026. On January 29, 2026 SAP authorized a new share-repurchase program of up to €10 billion.

Technical Analysis

ADX / DI+/DI-: ADX at 27.83 indicates a meaningful trend strength. DInegative at 43.76 with a peak & reversal signals DI- has peaked and started decreasing, which reads as bullish under directional-index rules. DIpositive at 21.66 with a dip & reversal signals renewed bullish momentum as DI+ rises.

MACD: MACD sits at -9.12 with a signal line at -8.23; MACD shows a dip & reversal, indicating bullish momentum is building, but MACD remains below the signal line and has not yet crossed above the signal.

MRO (Momentum/Regression Oscillator): MRO equals -35.44, a negative reading that indicates price below WMDST’s target and therefore an increased likelihood of upward price pressure toward target levels; the MRO trend shows decreasing magnitude.

RSI: RSI at 39.93 with a dip & reversal indicates recent selling pushed momentum toward oversold territory and now shows an early reversal higher, consistent with potential short-term relief moves.

Price vs Moving Averages and Bands: Price closed at $202.65, below the 200-day average of $268.35 and below the 50-day average of $233.64, signaling longer-term technical underperformance versus multi-month averages. The 12-day EMA at $210.11 trends downward. Price trades near the lower 1x Bollinger band ($194.67), which increases the probability of short-term mean reversion while longer-term resistance remains near the 50- and 200-day levels and the Ichimoku Kijun-sen at $222.56.

Volume & Volatility: Recent volume (3,614,586) sits below the 10-day average (5,489,139) but above the 50-day average (2,353,656), while 42-day volatility (0.03) exceeds 52-week volatility (0.02), supporting the interpretation of recent directional moves with elevated short-term variability.

 


Fundamental Analysis

Earnings & Surprise: Reported EPS of $1.93 beat the $1.72 estimate, a +12.21% EPS surprise. Forward EPS stands at $2.54. The EPS beat supports the recent operational narrative and underpins cash-flow strength noted in corporate disclosures.

Profitability & Growth Rates: Reported earnings growth shows a YoY change of -123.18% and a QoQ change of -123.07% as provided; the headline earnings number outperformed consensus this quarter despite these large percentage swings. Reported revenue growth reads 0.0 with QoQ and YoY inputs at -100.0%, indicating revenue comparatives reflect reporting-period adjustments rather than positive top-line acceleration in the provided metrics.

Valuation Multiples: Trailing P/E equals 127.27 and forward P/E equals 99.73. WMDST’s valuation flags the stock as over-valued. The trailing P/E (127.27) sits below the industry peer mean P/E of 137.05 but above the industry peer median P/E of 90.35, so the multiple trades inside the peer range but on the upper side of peers’ central tendency. The PEG ratio registers at -42.21 versus an industry peer mean PEG of 8.18 and industry peer median PEG of 3.64, a large negative divergence reflecting a combination of elevated multiple and depressed growth inputs in the provided calculation.

Cash, Capital Structure, and Cash Conversion: Reported cost of debt equals 2.609%. Invested capital appears as a negative $813,000,000 in the provided metric; cash-flow margins and cash-flow-to-earnings read 0.0 in the supplied figures. Industry peer cash-conversion-cycle reference points show a range where the peer mean is approximately -55.61 days and the peer median equals -67.08 days; no direct SAP cash-conversion-cycle value provided for an apples-to-apples comparison in this report.

Operational Notes: Cloud backlog and cloud revenue commentary in recent corporate statements indicate continued cloud momentum. The €10 billion repurchase program announced January 29, 2026 supports per-share metrics and signals capital-return emphasis alongside improved free-cash-flow generation disclosed for FY2025.

Valuation Summary: WMDST values the stock as over-valued. High trailing and forward P/Es, a deeply negative PEG versus the industry peer mean and median, and price sitting well below long-term moving averages together place upward price appreciation at risk absent evident reacceleration in core revenue growth metrics.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-12-31
REPORT DATE: 2026-01-29
NEXT REPORT DATE: 2026-04-30
CASH FLOW  Begin Period Cash Flow
 Operating Cash Flow
 Capital Expenditures
 Change In Working Capital
 Dividends Paid
 Cash Flow Delta
 End Period Cash Flow
 
INCOME STATEMENT REVENUE
 Total Revenue
 Forward Revenue
COSTS
 Cost Of Revenue
 Depreciation
 Depreciation and Amortization
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income
 Interest Expense
 Net Interest Income
 Income Before Tax
 Tax Provision
 Tax Rate
 Net Income
 Net Income From Continuing Operations
EARNINGS
 EPS Estimate 1.72
 EPS Actual 1.93
 EPS Difference 0.21
 EPS Surprise 12.209 %
 Forward EPS 2.54
 
BALANCE SHEET ASSETS
 Total Assets
 Intangible Assets
 Net Tangible Assets
 Total Current Assets
 Cash and Short-Term Investments
 Cash
 Net Receivables
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt
 Total Current Liabilities
 Net Debt
 Total Debt
 Total Liabilities
EQUITY
 Total Equity
 Retained Earnings
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share
 Shares Outstanding
 Revenue Per-Share
VALUATION
 Market Capitalization
 Enterprise Value
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R
CAPITAL STRUCTURE
 Asset To Equity
 Asset To Liability
 Debt To Capital
 Debt To Assets
Debt To Assets QoQ
Debt To Assets YoY
Debt To Assets IPRWA
 Debt To Equity
Debt To Equity QoQ
Debt To Equity YoY
Debt To Equity IPRWA
PRICE-BASED VALUATION
 Price To Book (P/B)
Price To Book QoQ
Price To Book YoY
Price To Book IPRWA
 Price To Earnings (P/E) 127.273
Price To Earnings QoQ -7.733 %
Price To Earnings YoY -28.525 %
Price To Earnings IPRWA high: 697.934
mean: 137.052
SAP: 127.273
median: 90.345
low: -94.028
 PE/G Ratio -42.213
 Price To Sales (P/S)
Price To Sales QoQ
Price To Sales YoY
Price To Sales IPRWA
FORWARD MULTIPLES
Forward P/E 99.73
Forward PE/G -33.078
Forward P/S
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio
Asset Turnover Ratio QoQ
Asset Turnover Ratio YoY
Asset Turnover Ratio IPRWA
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA high: 113.407
SAP: 0
mean: -55.605
low: -67.075
median: -67.075
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital
 Net Invested Capital
 Invested Capital -813.00 M
 Net Tangible Assets
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 2.609 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate
 Revenue Growth 0.0 %
Revenue Growth QoQ -100.0 %
Revenue Growth YoY -100.0 %
Revenue Growth IPRWA high: 14.586 %
mean: 4.637 %
median: 4.635 %
SAP: 0.0 %
low: -6.711 %
 Earnings Growth -3.015 %
Earnings Growth QoQ -123.072 %
Earnings Growth YoY -123.178 %
Earnings Growth IPRWA high: 53.741 %
mean: 14.534 %
median: 6.667 %
SAP: -3.015 %
low: -128.333 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF)
 Free Cash Flow Yield
Free Cash Flow Yield QoQ
Free Cash Flow Yield YoY
Free Cash Flow Yield IPRWA
 Free Cash Growth
Free Cash Growth QoQ
Free Cash Growth YoY
Free Cash Growth IPRWA
 Free Cash To Net Income
 Cash Flow Margin 0.0 %
 Cash Flow To Earnings 0.0
VALUE & RETURNS
 Economic Value Added
 Return On Assets (ROA)
Return On Assets QoQ
Return On Assets YoY
Return On Assets IPRWA
 Return On Capital Employed (ROCE)
 Return On Equity (ROE)
Return On Equity QoQ
Return On Equity YoY
Return On Equity IPRWA
 DuPont ROE
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Technical indicators present a setup for a short-term relief rally: MACD shows a dip & reversal, RSI signals an early rebound from below-50 territory, and MRO’s negative reading implies room for upward movement toward WMDST’s target. Expect any bounce to encounter clear resistance at the 20–50 day average zone and the Ichimoku Kijun-sen near $222–$234, and stronger resistance into the 200-day average near $268. The €10 billion buyback and operational cloud momentum support near-term confidence, but elevated valuation multiples and weak top-line growth measures limit conviction for sustained upside beyond early mean-reversion. Short-term trading windows may favor counter-trend rallies, while persistent failure to reclaim the 50-day average would maintain broader price pressure.

About SAP SE

SAP SE (NYSE:SAP) develops and delivers enterprise application software and services globally. The company offers SAP S/4HANA, a comprehensive suite that supports finance, risk management, procurement, manufacturing, supply chain, and R&D. SAP SuccessFactors addresses human resources needs, covering HR management, payroll, talent management, and workforce analytics. Their spend management solutions manage direct and indirect spend, travel expenses, and external workforce. SAP provides customer experience solutions and the SAP Business Technology Platform, which facilitates application development, integration, and automation for clients and partners. The SAP Business Network enhances B2B collaboration, digitizing supply chain processes and enabling communication among trading partners. SAP Signavio assists clients in analyzing and optimizing business processes. Additionally, SAP offers industry cloud solutions tailored to specific industry needs, and Taulia solutions for working capital management, which help customers manage inflation impacts by improving visibility into working capital and liquidity access. SAP also emphasizes sustainability through its solutions and services. Founded in 1972, SAP SE maintains its headquarters in Walldorf, Germany.



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