SAP (SAP, $126.70) posts Q4 earnings
SAP posted fourth-quarter 2020 non-IFRS earnings, which fell -7% year-over-year to €1.69 per share ($2.02). The Zacks Consensus Estimate for earnings was $2.00.
The software company’s revenues fell -6% from the year-ago quarter to €7.541 billion ($8.993 billion), (down 2% constant currency or cc). The Zacks Consensus Estimate was $9.09 billion.
Cloud revenues rose +7% year-over-year to €2.04 billion on a non-IFRS basis (up +13% at cc).
Software licenses revenues of €4.54 billion fell -8% year-over-year (down 4% at cc) year over year.
Cloud revenues related to Software as a Service (SaaS)/Platform as a Service (PaaS) increased +13% at cc to €1.937 billion. Cloud revenues related to Infrastructure as a Service (IaaS) climbed +17% year over year at cc to €224 million.
The company’s services business (accounting for 12.7% of total revenues) generated revenue of €960 million, down -20% year-over-year (down -16% at cc).
Looking ahead, SAP expects to benefit from “expedited shift to the cloud” in 2021. The company believes that the COVID-19 crisis impacts will start to decrease due to vaccine roll outs, and that will lead to "gradual improvement” in demand environment in the second half of 2021.
The company predicts cloud revenues to range between €9.1 billion to €9.5 billion on a non-IFRS basis, (+13%-+18% at cc.). It projects non-IFRS cloud and software revenues in the range of €23.3 billion to €23.8 billion (flat to up 2% at cc). Non-IFRS operating profit at cc is forecast in the range of €7.8 billion to €8.2 billion (down 1% to 6% at cc.).
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for SAP turns positive, indicating new upward trend
SAP saw its Momentum Indicator move above the 0 level on July 24, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for SAP just turned positive on July 24, 2026. Looking at past instances where SAP's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
SAP moved above its 50-day moving average on July 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SAP crossed bullishly above the 50-day moving average on July 31, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SAP advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 279 cases where SAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 19 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
SAP broke above its upper Bollinger Band on July 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.829) is normal, around the industry mean (28.672). P/E Ratio (28.018) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (1.867) is also within normal values, averaging (1.753). Dividend Yield (0.013) settles around the average of (0.046) among similar stocks. P/S Ratio (5.727) is also within normal values, averaging (70.832).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a provider of e-business software solutions
Industry PackagedSoftware
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