SAP SE (SAPG.DE) – A robust quarter with a worrisome outlook

SAP SE (SAPG.DE) (Q2FY23)

Stock Performance: SAP stock price surged by 48.53% in the past 1- year. It had a 52-week high of €131.70 and its 52-week low is €79.58. The price showed a sideways trend in the past 3- 3-month period and gave 2% returns due to the decrease in cloud revenue outlook for FY23.

Q2FY23 results: Cloud revenue up 19% and up 22% at constant currencies. SAP S/4HANA cloud revenue up 74% and accelerates to 79% at constant currencies. The current cloud backlog up 21% and up 25% constant currencies.

Guidance: For FY23, SAP expects €14- €14.2 bn cloud revenue, up 23-24% at constant currencies. €27.0-27.4bn cloud and software revenue at constant currencies, up 6-8% at constant currencies. The share of more predictable revenue is expected to reach ~82% in 2023. Free Cash flow is expected to be ~€4.9bn for FY23. €8.65bn to €8.95bn of non-IFRS operating income at cc is expected in FY23, up 8-12% at cc.

Highlights

SAP is well-positioned to continue to grow its cloud business in the coming quarters. The company has a strong portfolio of cloud solutions, and it is investing heavily in innovation to meet the needs of its customers. SAP is also benefiting from the increasing shift to cloud computing by businesses of all sizes.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Price Performance

Crispidea Coverage

No of Pages: 39

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