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SAP

9/9 Score

SAP SE

Analysis Date: February 16, 2026

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 16.8%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 12.9%

  • Cash Machine

    FCF / Assets > 5%

    Value: 11.3%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 3.7%

  • Share Buybacks

    Share Count is Dropping

    Value: 0.0%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 73.3%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.18x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 38.7%

Analysis Summary

SAP presents a compelling picture, passing all nine criteria. Its robust profitability, demonstrated by high ROE and ROIC, coupled with a strong indication of a defensible moat, makes this an interesting business to consider. With conservative debt levels and consistent growth, it appears to be a company running a tight ship, which is always a good sign in the long run.

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