Added to YB: 2025-07-31
Pitch date: 2025-07-30
SAP [neutral]
SAP SE
-17.09%
current return
Author Info
Northwest Frontier Capital is a generalist analyst with established track record of in Small and Mid-Cap and TMT investing across both the buy and sell-side. Philosophy based on identifying high quality companies with strong fundamentals, skilled management teams and clear competitive advantages, that can invest at high incremental ROIC on a persistent basis. Then looking to purchase these companies at intrinsic value and hold for the long-term. Sign up for the newsletter.
Company Info
SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide.
Market Cap
EUR 242.5B
Pitch Price
EUR 5.50
Price Target
N/A
Dividend
1.13%
EV/EBITDA
21.80
P/E
34.55
EV/Sales
6.63
Sector
Software
Category
growth
SAP Q2: Constant Consistency
SAP (earnings update): Strong Q2 w/ 28% cloud backlog growth to €18bn, cloud rev +28%, ERP suite +34%, op profit +35% to €2.57bn. Market missed long-term drivers: 1) Maintenance backlog transition (2-3x spend) 2) Geographic expansion (Asia +33%) 3) Business Data Cloud traction 4) AI productivity gains. Expensive at 38.5x FY25 P/E but double-digit IRR potential.
Read full article (7 min)