SAP (SAP SE) Profitability Rank: 8 (As of Mar. 2026) — 11% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SAP SAP SE SAP
77 GF Score
Price $158.35
GF Value $255.84
Valuation Significantly Undervalued
View Full Analysis

What is SAP SE Profitability Rank?

SAP SE SAP -0.43% 77 Profitability Rank is 8 as of Mar. 2026, which is 11% below its 10-year median of 9.00. GuruFocus rates SAP with a GF Score™ of 77/100 and a GF Value™ of $255.84 (Significantly Undervalued).

SAP SE has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

SAP SE's Operating Margin % for the quarter that ended in Mar. 2026 was 28.80%. As of today, SAP SE's Piotroski F-Score is 7.


SAP SE Profitability Rank Related Terms


SAP vs UBER, SHOP, CRM: Profitability Rank Comparison

For the Software - Application subindustry, SAP SE's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SAP SE Profitability Rank vs Software Industry

For the Software industry and Technology sector, SAP SE's Profitability Rank distribution charts can be found below:

* The bar in red indicates where SAP SE's Profitability Rank falls into.


SAP
77GF Score
SAP SE SAP
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SAP SE Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

SAP SE has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

SAP SE's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=3181.503 / 11046.243
=28.80 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

SAP SE has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

SAP SE operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 8 mean?
SAP SE (SAP) has a Profitability Rank of 8 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on SAP SE and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, SAP SE's Profitability Rank has ranged from 7.00 to 10.00.
Is SAP SE's Profitability Rank too high?
SAP SE's current Profitability Rank of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, SAP SE has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Profitability Rank compare to UBER and SHOP?
SAP SE's Profitability Rank of 8 can be compared against companies in the Software industry. Historically, SAP SE's own Profitability Rank has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Software company?
A good Profitability Rank depends on the Software industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on SAP SE and its competitors. SAP SE's current Profitability Rank is 8, which is 11% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SAP SE stock overvalued right now?
Based on GuruFocus' analysis, SAP SE (SAP) is currently considered Significantly Undervalued. The stock's GF Value™ is $255.84, compared to a current price of $158.35 — trading 38.1% below its estimated fair value. The current Profitability Rank is 8, which is 11% below median its 10-year median of 9.00. SAP SE's overall GF Score™ is 77/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For SAP SE (SAP), the current Profitability Rank is 8 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is SAP SE (SAP) Overvalued in 2026?

Based on GuruFocus' analysis, SAP SE stock appears to be undervalued. The current stock price of $158.35 is trading 38.1% below its estimated GF Value™ of $255.84. GuruFocus considers SAP SE to be Significantly Undervalued.

Key valuation signals for SAP:

  • Profitability Rank: 8 (11% below median its 10-year median of 9.00)
  • GF Value™: $255.84 vs. price of $158.35 (38.1% below fair value)
  • GF Score™: 77/100

No single metric tells the full story. See the SAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SAP SE Business Description

Address Dietmar-Hopp-Allee 16, Walldorf, BW, DEU, 69190
Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.
77GF Score

Get the complete analysis for SAP

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$158.35
Price
$255.84
GF Value