Skip to Content
Morningstar

SAP SE SAP

Morningstar Rating
Unlock
Stock XETR Rating as of
€175.76 +0.98 (0.56%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

SAP’s Narrow Moat Is Exposed Amid Cloud Migrations

Julie Bhusal Sharma

SAP is a best-in-breed enterprise resource planning provider and holds dominant market share in global ERP software. However, SAP is phasing out its support of its on-premises ERP software such that by 2040 all of its ERP customers will need to shift to a cloud solution. We think that this vulnerability is a significant threat to SAP’s switching costs, as competitors like Workday offer compelling cloud ERP solutions, while forced migration opens up opportunity to question a company’s best fit for ERP needs. In turn, we believe SAP’s narrow moat, derived from its switching costs, is trending negative. However, it is still early in SAP's transition of on-premises users to the cloud, which leads us to believe its negative trend could be prolonged.

Read Full Report

Price vs Fair Value

View History
SAP is trading at a 562% premium.
Price
€174.78
Fair Value
€349.00
Uncertainty
Medium
1-Star Price
€336.90
5-Star Price
€81.50
Economic Moat
Pshqlr
Capital Allocation
Sgz

Bulls Say, Bears Say

Bulls

SAP should be able to migrate the majority of its on-premises ERP customers to S/4HANA while continuing to add hefty net new customers to the platform.

Bears

SAP’s S/4HANA mandated transition could cause even greater customer churn as customers are forced to reassess their ERP and database providers.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SAP is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
€174.78
Day Range
€175.56–177.48
52-Week Range
€118.52–184.48
Bid/Ask
€0.00 / €0.00
Market Cap
€205.15 Bil
Volume/Avg
1.4 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
32.86
Price/Sales
6.49
Dividend Yield (Trailing)
1.26%
Dividend Yield (Forward)
1.26%
Total Yield
1.94%

Company Profile

Founded in 1972 by former IBM employees, SAP provides database technology and enterprise resource planning software to enterprises around the world. Across more than 180 countries, the company serves 440,000 customers, approximately 80% of which are small- to medium-size enterprises.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
107,602
Website
https://www.sap.com

Competitors

Valuation

View More
Metric
SAP
ORCL
WDAY
Price/Earnings (Normalized)
 32.8624.6233.41
Price/Book Value
 4.7443.746.81
Price/Sales
 6.497.367.41
Price/Cash Flow
 44.7320.3524.03
Price/Earnings
SAP
ORCL
WDAY

Financial Strength

Metric
SAP
ORCL
WDAY
Quick Ratio
 1.120.691.88
Current Ratio
 1.250.852.00
Interest Coverage
 4.753.952.23
Quick Ratio
SAP
ORCL
WDAY

Profitability

Metric
SAP
ORCL
WDAY
Return on Assets (Normalized)
 11.27%11.69%17.96%
Return on Equity (Normalized)
 18.79%749.60%37.52%
Return on Invested Capital (Normalized)
 15.28%20.33%23.89%
Return on Assets
SAP
ORCL
WDAY
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Software - Application Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Salesforce Inc
CRM
QqgkkmsnTpd$224.7 Bil
 SAP SE ADR
SAP
PrkQwrpm$219.1 Bil
 Intuit Inc
INTU
KgqhwqmvTrt$166.5 Bil
 ServiceNow Inc
NOW
WlcdxghcdwThg$149.6 Bil
 Uber Technologies Inc
UBER
BsrkrbspVgcjf$146.4 Bil
 Shopify Inc Registered Shs -A- Subord Vtg
SHOP
DgrqbprZchh$87.2 Bil
 Cadence Design Systems Inc
CDNS
GjvjtrhkQwzgpk$85.0 Bil
 Roper Technologies Inc
ROP
KmdzlpznrsDlwl$58.8 Bil
 Workday Inc Class A
WDAY
LqmyjrmcLqtc$55.6 Bil
 Dassault Systemes SE ADR
DASTY
KjjmswkqDbbs$50.2 Bil

Sponsor Center