GURUFOCUS.COM » STOCK LIST » Technology » Software » SAP SE (XTER:SAP) » Definitions » Profitability Rank

SAP SE (XTER:SAP) Profitability Rank : 7 (As of Mar. 2025)


View and export this data going back to 1988. Start your Free Trial

What is SAP SE Profitability Rank?

SAP SE has the Profitability Rank of 7.

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. 2025 was 25.88%. As of today, SAP SE's Piotroski F-Score is 7.


Competitive Comparison of SAP SE's Profitability Rank

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's Profitability Rank Distribution in the 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 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 7.

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. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=2333 / 9013
=25.88 %

* 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.

4. Consistency of the profitability

5. Predictability Rank


SAP SE Profitability Rank Related Terms

Thank you for viewing the detailed overview of SAP SE's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


SAP SE Business Description

Industry
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.
Executives
Nicolas Sabatier Supervisory Board
Margret Klein-magar Supervisory Board
Gerhard Oswald Supervisory Board
Christian Kurt Klein Board of Directors
Dr. Rouven Westphal Supervisory Board
Pascal Demat Supervisory Board
Gina Vargiu-breuer Board of Directors
Thomas Heinrich Saueressig Board of Directors
Dr. Juergen Mueller Board of Directors
Prof. Dr. H.c. Mult. Hasso Plattner Supervisory Board
Helmut Stengele Supervisory Board
Peter Lengler Supervisory Board
Sabine Bendiek Board of Directors
Luka Mucic Board of Directors