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SAP SE Profitability Rank

: 9 (As of Jun. 2022)
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SAP SE has the Profitability Rank of 9. 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 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

SAP SE's Operating Margin % for the quarter that ended in Jun. 2022 was 10.67%. As of today, SAP SE's Piotroski F-Score is 6.


Competitive 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 Distribution

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 maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

SAP SE has the Profitability Rank of 9. 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 Jun. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=847.78012684989 / 7945.0317124736
=10.67 %

* 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

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 6 indicating the company's financial situation is typical for a stable company.

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

Warning Sign:

SAP SE operating margin has been in a 5-year decline. The average rate of decline per year is -3.6%.

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

SAP SE logo
Industry
Address
Dietmar-Hopp-Allee 16, Walldorf, BW, DEU, 69190
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.

SAP SE Headlines

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