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.).
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SAP advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
SAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 295 cases where SAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Momentum Indicator moved below the 0 level on April 05, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SAP as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
SAP moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SAP crossed bearishly below the 50-day moving average on April 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (4.909) is normal, around the industry mean (29.847). P/E Ratio (58.937) is within average values for comparable stocks, (155.253). Projected Growth (PEG Ratio) (3.964) is also within normal values, averaging (2.725). Dividend Yield (0.011) settles around the average of (0.081) among similar stocks. P/S Ratio (6.863) is also within normal values, averaging (55.178).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of e-business software solutions
Industry PackagedSoftware