Anything left for S A P in July?

Inspite very unsteady forward-looking indicators, S A P displayed solid returns over the last few months and may actually be approaching a breakup point. Macroaxis considers S A P very steady given 1 month investment horizon. SAP SE owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0829 which indicates the company had 0.0829% of return per unit of standard deviation over the last 1 month. Our approach into measuring volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for SAP SE which you can use to evaluate future volatility of the entity. Please operate S A P Risk Adjusted Performance of 0.0514, Market Risk Adjusted Performance of 0.121 and Downside Deviation of 1.48 to confirm if our risk estimates are consistent with your expectations.
Published over a year ago
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Reviewed by Ellen Johnson

This firm has 9.23B in debt with debt to equity (D/E) ratio of 50.4 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. The company has Current Ratio of 1.08 demonstrating that it may have difficulties to pay its financial commitments when the payables are due. S A P dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.98 per share. Lets now take a look at S A P EBITDA. According to company disclosure SAP SE reported earnings before interest,tax, depreciation and amortization of 7.27B. This is 685.57% higher than that of the Technology sector, and 2836.11% higher than that of Software - Application industry, The EBITDA for all stocks is 86.48% lower than SAP SE.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include S A P income statement, its balance sheet, and the statement of cash flows. Potential S A P investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although S A P investors may use each financial statement separately, they are all related. The changes in S A P's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on S A P's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of S A P fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of S A P performance into the future periods or doing a reasonable stock valuation. The intrinsic value of S A P shares is the value that is considered the true value of the share. If the intrinsic value of SAP is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares S A P. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of S A P earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. S A P dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. SAP one year expected dividend income is about USD1.62 per share.
Investing in stocks that pay dividends, such as stock of SAP SE ADR, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in S A P must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for S A P. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is S A P's Liquidity

S A P financial leverage refers to using borrowed capital as a funding source to finance SAP SE ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. S A P financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to S A P's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of S A P's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between S A P's total debt and its cash.

Breaking down S A P Indicators

SAP SE has beta of 0.93. S A P returns are very sensitive to returns on the market. As market goes up or down, S A P is expected to follow. The latest bullish price patterns experienced by current S A P shareholders has created some momentum for investors as it was traded today as low as 122.86 and as high as 123.5 per share. The company executives have been very successful with rebalancing the entity components at opportune times to take advantage of market volatility in May. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.4204. The current volatility is consistent with the ongoing market swings in May 2019 as well as with SAP SE unsystematic, company specific events. S A P preserves 9.23b of total debt. S A P is trading at 123.08 which is 0.20% increase. Today lowest is 122.86.
To summarize, our analysis show that S A P Follows market closely. The corporate body is fairly valued and projects chance of distress very small for the next 2 years. Our overall buy-hold-sell recommendation on the corporate body is Strong Buy.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of SAP SE ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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