Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin26.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin19.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt1.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.4B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.8B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book4.06x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$8.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income10.3%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$9.2B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About SAP SE
SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide. It offers SAP Business AI; SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR, time, payroll, talent and employee experience management, and analytics and planning; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand business process operations; industry solutions that provide customers and partners with industry-specific solutions; and SAP LeanIX to visualize enterprise architecture, assess interdependencies and the potential impact of IT modernization, and manage the transition toward the target landscape. Further, the company provides WalkMe to execute workflows; SAP Enable Now, which offers e-learning content embedded in SAP workflows; Taulia solutions for working capital management; and sustainability solutions and services. Additionally, it provides services and support solutions. The company has a strategic collaboration with Fresenius SE & Co. KGaA and Avelios Medical GmbH for the development of a cloud-native, hospital information system that enables digitalization of clinical and administrative processes with AI integration. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.
SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide. It offers SAP Business AI; SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR, time, payroll, talent and employee experience management, and analytics and planning; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand business process operations; industry solutions that provide customers and partners with industry-specific solutions; and SAP LeanIX to visualize enterprise architecture, assess interdependencies and the potential impact of IT modernization, and manage the transition toward the target landscape. Further, the company provides WalkMe to execute workflows; SAP Enable Now, which offers e-learning content embedded in SAP workflows; Taulia solutions for working capital management; and sustainability solutions and services. Additionally, it provides services and support solutions. The company has a strategic collaboration with Fresenius SE & Co. KGaA and Avelios Medical GmbH for the development of a cloud-native, hospital information system that enables digitalization of clinical and administrative processes with AI integration. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering SAP SE at $155.22.
The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.
At $155.22, the stock trades at a 114% premium to its Graham Number of $72.40. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
72.9%▼
73.0%▲
72.2%▼
72.8%
Operating Margin %
26.1%▲
22.8%▲
19.3%▼
20.5%
Net Income %
19.5%▲
9.1%▼
19.7%▲
7.7%
Diluted EPS
6.10▲
2.65▼
5.17▲
1.95
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$70.4B
$74.2B
$68.3B
$72.2B
N/A
Total Debt
$7.5B▼
$10.7B▲
$8.8B▼
$13.1B•
N/A
Working Capital
$2.8B▲
$2.3B▼
$5.9B▲
$1.1B•
N/A
Years to Pay Debt
1.04
3.41
1.43
5.73
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$8.4B▲
$4.4B▼
$5.5B▲
$4.8B•
N/A
Owner Earnings
$9.2B
$5.2B
$8.3B
$4.7B
N/A
CapEx % of Net Income
10.3%
25.5%
12.8%
38.4%
N/A
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
258,874
-992,592
-102,028
-416,530
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
11,171,000
9,517,000
7,666,000
7,780,000
Total Unusual Items
902,000
-2,928,000
-313,000
-1,300,000
Total Unusual Items Excluding Goodwill
902,000
-2,928,000
-313,000
-1,300,000
Net Income From Continuing Operation Net Minority Interest
7,161,000
3,124,000
3,776,000
3,643,000
Reconciled Depreciation
1,311,000
1,280,000
1,373,000
1,569,000
Reconciled Cost Of Revenue
9,986,000
9,243,000
8,674,000
8,038,000
EBITDA
12,073,000
6,589,000
7,353,000
6,480,000
EBIT
10,762,000
5,309,000
5,980,000
4,911,000
Net Interest Income
-230,000
-64,000
-311,000
-195,000
Interest Expense
492,000
545,000
639,000
398,000
Interest Income
428,000
631,000
486,000
203,000
Normalized Income
6,517,874
5,059,408
3,986,972
4,526,470
Net Income From Continuing And Discontinued Operation
7,161,000
3,124,000
6,139,000
2,284,000
Total Expenses
27,180,000
26,367,000
25,194,000
23,469,000
Total Operating Income As Reported
9,617,000
4,665,000
5,799,000
5,914,000
Diluted Average Shares
1,175,000
1,180,000
1,180,000
1,175,000
Basic Average Shares
1,166,000
1,166,000
1,167,000
1,170,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
7,161,000
3,124,000
6,139,000
2,284,000
Net Income Common Stockholders
7,161,000
3,124,000
6,139,000
2,284,000
Net Income
7,161,000
3,124,000
6,139,000
2,284,000
Minority Interests
-165,000
-26,000
175,000
576,000
Net Income Including Noncontrolling Interests
7,326,000
3,150,000
5,963,000
1,709,000
Net Income Discontinuous Operations
0
0
2,363,000
-1,359,000
Net Income Continuous Operations
7,326,000
3,150,000
3,600,000
3,068,000
Tax Provision
2,944,000
1,614,000
1,741,000
1,446,000
Pretax Income
10,270,000
4,764,000
5,341,000
4,513,000
Other Income Expense
879,000
-2,980,000
-361,000
-1,343,000
Other Non Operating Income Expenses
-23,000
-52,000
-48,000
-43,000
Special Income Charges
-3,000
-3,144,000
-215,000
38,000
Gain On Sale Of Business
-18,000
-12,000
176,000
Restructuring And Mergern Acquisition
3,000
3,144,000
215,000
138,000
Gain On Sale Of Security
905,000
216,000
-98,000
-1,338,000
Net Non Operating Interest Income Expense
-230,000
-64,000
-311,000
-195,000
Total Other Finance Cost
166,000
150,000
158,000
143,000
Interest Expense Non Operating
492,000
545,000
639,000
398,000
Interest Income Non Operating
428,000
631,000
486,000
203,000
Operating Income
9,620,000
7,808,000
6,014,000
6,051,000
Operating Expense
17,194,000
17,124,000
16,520,000
15,431,000
Other Operating Expenses
49,000
85,000
4,000
116,000
Research And Development
6,633,000
6,514,000
6,324,000
6,080,000
Selling General And Administration
10,512,000
10,525,000
10,192,000
9,235,000
Selling And Marketing Expense
8,879,000
9,090,000
8,828,000
7,946,000
General And Administrative Expense
1,633,000
1,435,000
1,364,000
1,289,000
Other Gand A
1,633,000
1,435,000
1,364,000
1,289,000
Gross Profit
26,814,000
24,932,000
22,534,000
21,482,000
Cost Of Revenue
9,986,000
9,243,000
8,674,000
8,038,000
Total Revenue
36,800,000
34,176,000
31,207,000
29,519,000
Operating Revenue
36,800,000
34,176,000
31,207,000
29,519,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
60,945
61,915
61,275
61,387
Ordinary Shares Number
1,167,559
1,166,589
1,167,229
1,167,118
Share Issued
1,228,504
1,228,504
1,228,504
1,228,504
Net Debt
1,937,000
4,102,000
Total Debt
7,476,000
10,651,000
8,791,000
13,085,000
Tangible Book Value
13,290,000
11,468,000
11,571,000
3,274,000
Invested Capital
50,378,000
54,374,000
50,327,000
51,131,000
Working Capital
2,840,000
2,319,000
5,930,000
1,069,000
Net Tangible Assets
13,290,000
11,468,000
11,571,000
3,274,000
Capital Lease Obligations
1,684,000
1,715,000
1,621,000
2,140,000
Common Stock Equity
44,586,000
45,438,000
43,157,000
40,186,000
Total Capitalization
48,780,000
50,738,000
49,184,000
47,147,000
Total Equity Gross Minority Interest
45,074,000
45,806,000
43,406,000
42,848,000
Minority Interest
488,000
368,000
249,000
2,662,000
Stockholders Equity
44,586,000
45,438,000
43,157,000
40,186,000
Other Equity Interest
396,000
4,692,000
2,367,000
3,799,000
Treasury Stock
6,948,000
5,954,000
4,741,000
4,341,000
Retained Earnings
47,345,000
42,907,000
42,457,000
36,418,000
Additional Paid In Capital
2,564,000
2,564,000
1,845,000
3,081,000
Capital Stock
1,229,000
1,229,000
1,229,000
1,229,000
Common Stock
1,229,000
1,229,000
1,229,000
1,229,000
Total Liabilities Net Minority Interest
25,288,000
28,431,000
24,925,000
29,311,000
Total Non Current Liabilities Net Minority Interest
7,872,000
9,349,000
10,284,000
11,858,000
Other Non Current Liabilities
394,000
450,000
587,000
796,000
Employee Benefits
524,000
749,000
698,000
705,000
Tradeand Other Payables Non Current
564,000
522,000
913,000
972,000
Non Current Deferred Liabilities
216,000
414,000
300,000
274,000
Non Current Deferred Revenue
144,000
88,000
33,000
33,000
Non Current Deferred Taxes Liabilities
72,000
326,000
267,000
241,000
Long Term Debt And Capital Lease Obligation
5,624,000
6,720,000
7,354,000
8,752,000
Long Term Capital Lease Obligation
1,430,000
1,420,000
1,327,000
1,791,000
Long Term Debt
4,194,000
5,300,000
6,027,000
6,961,000
Long Term Provisions
550,000
494,000
432,000
359,000
Current Liabilities
17,416,000
19,082,000
14,641,000
17,453,000
Other Current Liabilities
1,132,000
1,373,000
315,000
474,000
Current Deferred Liabilities
6,581,000
5,978,000
4,975,000
5,309,000
Current Deferred Revenue
6,581,000
5,978,000
4,975,000
5,309,000
Current Debt And Capital Lease Obligation
1,852,000
3,931,000
1,437,000
4,333,000
Current Capital Lease Obligation
254,000
295,000
294,000
349,000
Current Debt
1,598,000
3,636,000
1,143,000
3,984,000
Other Current Borrowings
1,100,000
3,138,000
1,143,000
3,056,000
Commercial Paper
498,000
498,000
0
928,000
Pensionand Other Post Retirement Benefit Plans Current
3,915,000
4,511,000
4,760,000
4,156,000
Current Provisions
537,000
716,000
235,000
90,000
Payables And Accrued Expenses
3,399,000
2,573,000
2,919,000
3,091,000
Payables
3,399,000
2,573,000
2,919,000
3,091,000
Total Tax Payable
968,000
585,000
1,136,000
945,000
Accounts Payable
2,431,000
1,988,000
1,783,000
2,146,000
Total Assets
70,362,000
74,237,000
68,331,000
72,159,000
Total Non Current Assets
50,106,000
52,836,000
47,760,000
53,638,000
Other Non Current Assets
1,000
1,000
-1,000
2,347,000
Non Current Prepaid Assets
626,000
430,000
386,000
512,000
Non Current Deferred Assets
5,845,000
6,166,000
5,351,000
5,114,000
Non Current Deferred Taxes Assets
2,163,000
2,674,000
2,197,000
2,095,000
Non Current Accounts Receivable
573,000
635,000
618,000
541,000
Financial Assets
547,000
593,000
294,000
332,000
Investments And Advances
6,722,000
6,548,000
5,249,000
5,294,000
Investmentin Financial Assets
6,580,000
6,404,000
5,114,000
5,143,000
Available For Sale Securities
6,580,000
6,404,000
5,114,000
5,143,000
Long Term Equity Investment
142,000
144,000
135,000
151,000
Investmentsin Associatesat Cost
142,000
144,000
135,000
151,000
Goodwill And Other Intangible Assets
31,296,000
33,970,000
31,586,000
36,912,000
Other Intangible Assets
2,282,000
2,706,000
2,505,000
3,835,000
Goodwill
29,014,000
31,264,000
29,081,000
33,077,000
Net PPE
4,497,000
4,493,000
4,276,000
4,934,000
Gross PPE
4,497,000
4,493,000
4,276,000
4,934,000
Leases
1,370,000
1,391,000
1,320,000
1,758,000
Construction In Progress
195,000
156,000
162,000
142,000
Other Properties
107,000
66,000
55,000
43,000
Machinery Furniture Equipment
1,328,000
1,379,000
1,309,000
1,406,000
Land And Improvements
1,497,000
1,501,000
1,430,000
1,585,000
Current Assets
20,256,000
21,401,000
20,571,000
18,522,000
Other Current Assets
265,000
88,000
44,000
30,000
Current Deferred Assets
1,412,000
1,350,000
1,246,000
1,036,000
Prepaid Assets
1,256,000
988,000
844,000
828,000
Receivables
7,551,000
7,737,000
6,969,000
6,767,000
Other Receivables
885,000
543,000
429,000
454,000
Taxes Receivable
876,000
963,000
648,000
531,000
Accounts Receivable
5,790,000
6,231,000
5,892,000
5,782,000
Cash Cash Equivalents And Short Term Investments
9,772,000
11,238,000
11,468,000
9,861,000
Other Short Term Investments
1,552,000
1,629,000
3,344,000
853,000
Cash And Cash Equivalents
8,220,000
9,609,000
8,124,000
9,008,000
Cash Equivalents
4,310,000
5,647,000
4,755,000
5,831,000
Cash Financial
3,910,000
3,962,000
3,369,000
3,176,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
8,417,000
4,410,000
5,461,000
4,770,000
Repurchase Of Capital Stock
-1,937,000
-2,106,000
-949,000
-1,500,000
Repayment Of Debt
-3,490,000
-1,495,000
-4,413,000
-1,855,000
Issuance Of Debt
2,000
2,767,000
13,000
158,000
Capital Expenditure
-739,000
-797,000
-785,000
-877,000
End Cash Position
8,220,000
9,609,000
8,124,000
9,008,000
Beginning Cash Position
9,609,000
8,124,000
9,008,000
8,898,000
Effect Of Exchange Rate Changes
-836,000
333,000
-388,000
134,000
Changes In Cash
-553,000
1,152,000
-496,000
-24,000
Financing Cash Flow
-8,745,000
-3,961,000
-8,131,000
-6,337,000
Cash From Discontinued Financing Activities
0
0
20,000
-263,000
Cash Flow From Continuing Financing Activities
-8,744,000
-3,961,000
-8,150,000
-6,074,000
Net Other Financing Charges
-3,000
-12,000
-14,000
-12,000
Interest Paid Cff
-574,000
-550,000
-393,000
Cash Dividends Paid
-2,743,000
-2,565,000
-2,395,000
-2,865,000
Common Stock Dividend Paid
-2,743,000
-2,565,000
-2,395,000
-2,865,000
Net Common Stock Issuance
-1,937,000
-2,106,000
-949,000
-1,500,000
Common Stock Payments
-1,937,000
-2,106,000
-949,000
-1,500,000
Net Issuance Payments Of Debt
-3,488,000
1,272,000
-4,400,000
-1,697,000
Net Long Term Debt Issuance
-3,488,000
1,272,000
-4,400,000
-1,697,000
Long Term Debt Payments
-3,490,000
-1,495,000
-4,413,000
-1,855,000
Long Term Debt Issuance
2,000
2,767,000
13,000
158,000
Investing Cash Flow
-965,000
-93,000
1,389,000
667,000
Cash From Discontinued Investing Activities
0
0
5,523,000
-32,000
Cash Flow From Continuing Investing Activities
-966,000
-94,000
-4,135,000
698,000
Net Other Investing Changes
1,000
1,000
1,000
1,000
Interest Received Cfi
420,000
563,000
469,000
Net Investment Purchase And Sale
-66,000
1,132,000
-2,659,000
1,870,000
Sale Of Investment
5,779,000
7,533,000
907,000
4,190,000
Purchase Of Investment
-5,845,000
-6,401,000
-3,566,000
-2,320,000
Net Business Purchase And Sale
-702,000
-1,114,000
-1,259,000
-390,000
Sale Of Business
0
0
289,000
Purchase Of Business
-702,000
-1,114,000
-1,259,000
-679,000
Net Intangibles Purchase And Sale
-618,000
-675,000
-686,000
-782,000
Sale Of Intangibles
121,000
122,000
99,000
95,000
Purchase Of Intangibles
-739,000
-797,000
-785,000
-877,000
Operating Cash Flow
9,156,000
5,207,000
6,246,000
5,647,000
Cash From Discontinued Operating Activities
0
0
113,000
-29,000
Cash Flow From Continuing Operating Activities
9,157,000
5,205,000
6,135,000
5,674,000
Taxes Refund Paid
-2,198,000
-2,277,000
-2,161,000
-1,642,000
Interest Received Cfo
563,000
469,000
156,000
56,000
Interest Paid Cfo
-550,000
-393,000
-244,000
-198,000
Change In Working Capital
-664,000
623,000
-27,000
-143,000
Change In Other Working Capital
1,347,000
899,000
433,000
720,000
Change In Other Current Assets
-1,315,000
-632,000
-700,000
-1,213,000
Change In Payables And Accrued Expense
-308,000
603,000
633,000
154,000
Change In Payable
-308,000
603,000
633,000
154,000
Change In Account Payable
-308,000
603,000
633,000
154,000
Change In Receivables
-388,000
-247,000
-393,000
196,000
Other Non Cash Items
-1,258,000
-1,568,000
-614,000
36,000
Stock Based Compensation
1,695,000
2,385,000
2,220,000
1,431,000
Deferred Tax
2,944,000
1,614,000
1,741,000
1,446,000
Deferred Income Tax
2,944,000
1,614,000
1,741,000
1,446,000
Depreciation Amortization Depletion
1,311,000
1,280,000
1,373,000
1,569,000
Depreciation And Amortization
1,311,000
1,280,000
1,373,000
1,569,000
Net Income From Continuing Operations
7,326,000
3,150,000
3,601,000
3,067,000
4/7
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
$72.40
Margin of Safety
0%
Market Cap / Net Assets
4.0x
Net Assets: $45.1B
Warren's Owner Earnings
$9.2B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/7 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$36.8B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.16x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
1.57%
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $1.95 to $6.10 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+212.8% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
21.4x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
4.06x P/B (P/E×P/B: 87.1)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $36.8Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.16xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 1.57%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $1.95 to $6.10 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 21.4xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what SAP SE is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-4.31
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$91.55
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
14.4%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
10.3%
25.5%
12.8%
38.4%
N/A
Repurchase of Capital Stock
-$1.9B
-$2.1B
-$949M
-$1.5B
N/A
Free Cash Flow
$8.4B▲
$4.4B▼
$5.5B▲
$4.8B•
N/A•
Warren's Owner Earnings
$9.2B
$5.2B
$8.3B
$4.7B
N/A
Peers & Industry
No auto-detected peers for Software - Application. You can manually compare SAP against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.00%
Low — management has little skin in the game
Return on Equity (ROE)
16.1%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
10.2%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$1.9B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-29.8% YoY
Debt is declining — management is deleveraging
Leadership Team
Christian Klein
CEO & Member of Executive Board
Age 45
Pay: $6,099,817
0.085% of net income
Dominik Asam
CFO & Member of Executive Board
Age 56
Pay: $2,932,270
0.041% of net income
Sebastian Steinhaeuser
Chief Strategy Officer & COO and Member of Executive Board
Age 39
Pay: $2,468,670
0.034% of net income
Top Institutional Holders
Institution
% Owned
Shares
Fisher Asset Management, LLC
1.24%
14,534,441
Eagle Capital Management LLC
0.67%
7,848,603
FMR, LLC
0.56%
6,581,080
Capital International Investors
0.43%
5,011,856
Shaw D.E. & Co., Inc.
0.36%
4,256,672
Morgan Stanley
0.31%
3,616,017
Goldman Sachs Group Inc
0.28%
3,300,374
Windacre Partnership LLC
0.24%
2,762,125
Risk Analysis
Beta (Market Risk)
0.73
Low volatility — more stable than the market
Short Interest
1.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.17x
Conservative balance sheet — low financial risk
Current Ratio
1.07x
Adequate liquidity
52-Week Price Range
Low: $154.12Current: $155.22High: $313.28
Currently at 1% of 52-week range
SAP SE (SAP) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $72.40. Margin of safety: 0%. Gross profit margin: 72.9%. Operating margin: 26.1%. Net margin: 19.5%. Market cap: $183.0B. Sector: Technology. Industry: Software - Application. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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