Provide enterprise software solutions for various business functions. Offer cloud-based applications for finance, HR, and supply chain management. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 8% a year over the last 4 years. Every year shown ended in profit.
The market pays 28.9× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 55% of them.
Analysts' average target sits 15% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly above the class average — a step short of the very top.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Sales are growing strongly for its sector.
Clearly above the class average — a step short of the very top.
No real weak spot in any of the five subjects — a balanced report card.
The stock trades 34% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 19% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 8% a year on average.
There is $11.3B in the vault; even if every debt were paid off, $2.0B would remain.
Our checks did not surface a specific risk to flag here. That is not the same as there being none.
On our five-subject report card, SAP sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: SAP is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.