Recent News
Feb 2026: SAP proposed a €2.50 per-share dividend, with payment scheduled for May 8, 2026, and a stated payout ratio near 40.7%. Feb 2026: The company launched a share buy-back program of up to €2.6 billion running from Feb 5 through July 27, 2026. Jan 14, 2026: SAP published Business AI release highlights, naming Snowflake integration and other cloud AI features targeted for early 2026 availability. Dec 2025–Jan 2026: Multiple security updates and product certification changes appeared, including patches addressing critical vulnerabilities and retirement of selected certification exams effective end of December 2025.
Technical Analysis
ADX & Directional Indicators: ADX at 30.07 indicates a strong directional environment. DI- (37.35) exceeds DI+ (19.40), yet DI- is decreasing, which signals a shift toward bullish directional pressure. DI+ shows a peak-and-reversal, which signals recent loss of upside momentum. Together these point to a dominant downside trend that may be losing conviction and setting up for a directional shift that would support mean reversion.
MACD: MACD currently reads -5.81 with a peak-and-reversal in its trend, indicating bearish momentum. However, MACD sits above its signal line (-6.09), creating a short-term bullish crossover signal; this combination implies longer-run momentum remains negative while a near-term momentum lift could produce a bounce toward short-term averages.
MRO (Momentum/Regression Oscillator): MRO at -35.68 indicates the price sits below the WMDST target and therefore carries upside potential from mean reversion. The magnitude of the negative MRO supports a material price gap to the model target, reinforcing the valuation-based case for a recovery rather than further rapid downside.
RSI and Price Position vs Averages: RSI at 39.39 with a peak-and-reversal shows selling pressure recently peaked and momentum softened; RSI under 50 implies mild oversold conditions. The share price ($189.94) trades below the 20-day average ($197.01), 50-day average ($214.35), and 200-day average ($258.34), which keeps longer-term technical bias negative while leaving room for a mean-reversion move back toward the 20-day area.
Bollinger Bands, EMAs and Volume: The price sits below the 1x lower Bollinger band ($192.05) and above the 2x lower band ($187.09), a position consistent with potential short-term support and a volatility-compression rebound. The 12-day EMA shows a peak-and-reversal, confirming the short-term down-leg. On volume, current print (3,392) sits slightly above the 10-day average (2,392) but remains far below 50/200-day averages, which limits the conviction behind large intraday moves and suggests any bounce may start light in liquidity.
Fundamental Analysis
Profitability & Margins: EBIT equals $2,188,000,000 and EBIT margin stands at 29.05%. That margin sits below the industry peer mean (47.29%) and industry peer median (60.27%), indicating lower operating profitability versus the peer central tendency despite solid absolute margin levels. Operating margin equals 24.20% and gross margin equals 71.42%.
Revenue And Growth: Total revenue reached $9,684,000,000. Revenue growth shows a QoQ increase of 11.34% but a YoY contraction of -37.44%. The contrast—strong sequential growth versus steep year-over-year decline—suggests seasonal or lapping effects; QoQ strength supports near-term topline momentum while YoY weakness signals the company still works through larger annual comparisons.
Earnings And Cash Flow: Reported EPS came in at $1.93 versus an estimate of $1.72, producing an EPS surprise ratio of 12.21%. Net income totaled $1,680,000,000 and operating cash flow reached $1,297,000,000. Free cash flow equals $1,117,000,000 with a free cash flow yield of 0.39%, which sits above the industry peer mean (0.20%). Free cash growth shows QoQ and YoY declines, indicating cash generation remains positive but exhibits contraction versus prior periods.
Capital Structure & Returns: Total debt equals $7,476,000,000 with debt-to-EBITDA at 2.38 and interest coverage near 10.90x, reflecting manageable leverage and ample interest coverage. Return on equity stands at 3.77%, below the industry peer mean (8.77%) and median (9.84%), signaling lower shareholder return generation relative to peers.
Valuation: WMDST values the stock as under-valued. Price-to-earnings sits at 127.27, essentially in line with the industry peer mean (127.47) and above the industry peer median (102.12); price-to-book equals 6.42, below the industry peer mean (11.09) and median (9.18). Free cash flow yield above the industry peer mean and solid cash balances ($8.22B cash, $9.77B cash and short-term investments) support the WMDST under-valued call while high absolute multiples and YoY revenue contraction temper the valuation uplift.
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 | $ 8.6 B |
| Operating Cash Flow | $ 1.3 B | |
| Capital Expenditures | $ -180.00 M | |
| Change In Working Capital | $ -804.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -334.00 M | |
| End Period Cash Flow | $ 8.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 9.7 B | |
| Forward Revenue | $ 4.2 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.8 B | |
| Depreciation | $ 325.0 M | |
| Depreciation and Amortization | $ 325.0 M | |
| Research and Development | $ 1.7 B | |
| Total Operating Expenses | $ 7.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 6.9 B | |
| EBITDA | $ 2.5 B | |
| EBIT | $ 2.2 B | |
| Operating Income | $ 2.3 B | |
| Interest Income | $ -818.00 M | |
| Interest Expense | $ -367.00 M | |
| Net Interest Income | $ -617.00 M | |
| Income Before Tax | $ 2.6 B | |
| Tax Provision | $ 825.0 M | |
| Tax Rate | 32.29 % | |
| Net Income | $ 1.7 B | |
| Net Income From Continuing Operations | $ 1.7 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.72 | |
| EPS Actual | $ 1.93 | |
| EPS Difference | $ 0.21 | |
| EPS Surprise | 12.209 % | |
| Forward EPS | $ 2.51 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 70.4 B | |
| Intangible Assets | $ 31.3 B | |
| Net Tangible Assets | $ 13.3 B | |
| Total Current Assets | $ 20.3 B | |
| Cash and Short-Term Investments | $ 9.8 B | |
| Cash | $ 8.2 B | |
| Net Receivables | $ 5.8 B | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 2.4 B | |
| Short-Term Debt | $ 1.6 B | |
| Total Current Liabilities | $ 17.4 B | |
| Net Debt | — | |
| Total Debt | $ 7.5 B | |
| Total Liabilities | $ 25.3 B | |
| EQUITY | ||
| Total Equity | $ 44.6 B | |
| Retained Earnings | $ 47.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 38.28 | |
| Shares Outstanding | 1.168 B | |
| Revenue Per-Share | $ 8.32 | |
| VALUATION | Market Capitalization | $ 286.1 B |
| Enterprise Value | $ 283.8 B | |
| Enterprise Multiple | 90.431 | |
| Enterprise Multiple QoQ | -4.286 % | |
| Enterprise Multiple YoY | -27.788 % | |
| Enterprise Multiple IPRWA | high: 416.607 SAP: 90.431 mean: 71.138 median: 61.115 low: -363.609 |
|
| EV/R | 29.303 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.578 | |
| Asset To Liability | 2.782 | |
| Debt To Capital | 0.144 | |
| Debt To Assets | 0.106 | |
| Debt To Assets QoQ | -20.328 % | |
| Debt To Assets YoY | 116.616 % | |
| Debt To Assets IPRWA | high: 0.87 mean: 0.171 SAP: 0.106 median: 0.087 low: 0.001 |
|
| Debt To Equity | 0.168 | |
| Debt To Equity QoQ | -21.303 % | |
| Debt To Equity YoY | 109.548 % | |
| Debt To Equity IPRWA | high: 2.989 mean: 0.254 SAP: 0.168 median: 0.147 low: -1.778 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.416 | |
| Price To Book QoQ | -14.086 % | |
| Price To Book YoY | 0.971 % | |
| Price To Book IPRWA | high: 26.941 mean: 11.094 median: 9.178 SAP: 6.416 low: -16.001 |
|
| Price To Earnings (P/E) | 127.273 | |
| Price To Earnings QoQ | -7.733 % | |
| Price To Earnings YoY | -28.525 % | |
| Price To Earnings IPRWA | high: 522.411 mean: 127.474 SAP: 127.273 median: 102.121 low: -262.004 |
|
| PE/G Ratio | -42.213 | |
| Price To Sales (P/S) | 29.54 | |
| Price To Sales QoQ | -16.133 % | |
| Price To Sales YoY | -4.067 % | |
| Price To Sales IPRWA | high: 116.554 mean: 45.821 median: 44.141 SAP: 29.54 low: 0.808 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 99.73 | |
| Forward PE/G | -33.078 | |
| Forward P/S | 67.527 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.191 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.14 | |
| Asset Turnover Ratio QoQ | 5.193 % | |
| Asset Turnover Ratio YoY | 7.007 % | |
| Asset Turnover Ratio IPRWA | high: 0.4 SAP: 0.14 mean: 0.13 median: 0.125 low: 0.0 |
|
| Receivables Turnover | 1.674 | |
| Receivables Turnover Ratio QoQ | 6.561 % | |
| Receivables Turnover Ratio YoY | 4.56 % | |
| Receivables Turnover Ratio IPRWA | high: 5.582 SAP: 1.674 mean: 1.561 median: 1.485 low: 0.392 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 54.501 | |
| 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 | 3.41 | |
| CapEx To Revenue | -0.019 | |
| CapEx To Depreciation | -0.554 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 48.8 B | |
| Net Invested Capital | $ 50.4 B | |
| Invested Capital | $ 50.4 B | |
| Net Tangible Assets | $ 13.3 B | |
| Net Working Capital | $ 2.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.561 | |
| Current Ratio | 1.163 | |
| Current Ratio QoQ | 5.259 % | |
| Current Ratio YoY | 3.688 % | |
| Current Ratio IPRWA | high: 7.11 mean: 1.841 median: 1.386 SAP: 1.163 low: 0.466 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.382 | |
| Cost Of Debt | 2.609 % | |
| Interest Coverage Ratio | 10.903 | |
| Interest Coverage Ratio QoQ | 11.278 % | |
| Interest Coverage Ratio YoY | -270.861 % | |
| Interest Coverage Ratio IPRWA | high: 148.909 median: 66.552 mean: 47.246 SAP: 10.903 low: -122.007 |
|
| Operating Cash Flow Ratio | 0.135 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 85.464 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.874 % | |
| Revenue Growth | 6.699 % | |
| Revenue Growth QoQ | 1133.702 % | |
| Revenue Growth YoY | -37.439 % | |
| Revenue Growth IPRWA | high: 19.11 % SAP: 6.699 % mean: 5.983 % median: 4.635 % low: -9.105 % |
|
| Earnings Growth | -3.015 % | |
| Earnings Growth QoQ | -123.072 % | |
| Earnings Growth YoY | -123.178 % | |
| Earnings Growth IPRWA | high: 153.333 % mean: 14.352 % median: 7.865 % SAP: -3.015 % low: -163.636 % |
|
| MARGINS | ||
| Gross Margin | 71.417 % | |
| Gross Margin QoQ | -2.837 % | |
| Gross Margin YoY | -3.532 % | |
| Gross Margin IPRWA | high: 94.68 % mean: 71.919 % SAP: 71.417 % median: 68.036 % low: 37.597 % |
|
| EBIT Margin | 29.048 % | |
| EBIT Margin QoQ | -13.758 % | |
| EBIT Margin YoY | 42.756 % | |
| EBIT Margin IPRWA | high: 78.69 % median: 60.268 % mean: 47.287 % SAP: 29.048 % low: -68.729 % |
|
| Return On Sales (ROS) | 24.195 % | |
| Return On Sales QoQ | -11.097 % | |
| Return On Sales YoY | 18.906 % | |
| Return On Sales IPRWA | high: 76.917 % median: 47.094 % mean: 37.176 % SAP: 24.195 % low: -76.387 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.1 B | |
| Free Cash Flow Yield | 0.39 % | |
| Free Cash Flow Yield QoQ | -4.177 % | |
| Free Cash Flow Yield YoY | -237.324 % | |
| Free Cash Flow Yield IPRWA | high: 5.274 % SAP: 0.39 % mean: 0.204 % median: 0.164 % low: -3.727 % |
|
| Free Cash Growth | -14.143 % | |
| Free Cash Growth QoQ | -68.899 % | |
| Free Cash Growth YoY | -91.298 % | |
| Free Cash Growth IPRWA | high: 265.627 % SAP: -14.143 % mean: -23.974 % median: -77.08 % low: -192.165 % |
|
| Free Cash To Net Income | 0.665 | |
| Cash Flow Margin | 24.267 % | |
| Cash Flow To Earnings | 1.399 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.421 % | |
| Return On Assets QoQ | -17.372 % | |
| Return On Assets YoY | 8.711 % | |
| Return On Assets IPRWA | high: 16.838 % median: 5.909 % mean: 4.999 % SAP: 2.421 % low: -10.846 % |
|
| Return On Capital Employed (ROCE) | 5.313 % | |
| Return On Equity (ROE) | 0.038 | |
| Return On Equity QoQ | -19.504 % | |
| Return On Equity YoY | 6.954 % | |
| Return On Equity IPRWA | high: 0.298 median: 0.098 mean: 0.088 SAP: 0.038 low: -0.282 |
|
| DuPont ROE | 3.845 % | |
| Return On Invested Capital (ROIC) | 3.781 % | |
| Return On Invested Capital QoQ | -29.128 % | |
| Return On Invested Capital YoY | -120.574 % | |
| Return On Invested Capital IPRWA | high: 20.316 % median: 9.056 % mean: 7.445 % SAP: 3.781 % low: -11.474 % |
|