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SAP SE - AI Stock Analysis

Analysis generated September 21, 2024

SAP SE is a global powerhouse in enterprise application software, renowned for helping businesses of all sizes and industries run better. The company offers a range of software products and services focused on business operations and customer relations. With a strong presence in numerous markets, SAP SE has established itself as a leader in the software industry, thanks to its innovative solutions and comprehensive product portfolio. Additionally, SAP SE has a robust cloud strategy that has been gaining traction, making it a significant player in the evolving technology landscape.

Fundamental Analysis

**Revenue:** For the last quarter, SAP SE reported a revenue of €8.29 billion. This is an increase of 3.08% compared to the quarter before, and a 9.72% increase compared to the same quarter last year. This positive year-over-year growth highlights the company's ability to scale its operations effectively.

**Net Income:** The net income for the last quarter was €888 million. This represents a substantial increase of 207.25% compared to the previous quarter, indicating strong short-term performance. However, this figure shows a decrease of 74.30% compared to the same quarter last year, raising potential concerns regarding SAP SE's long-term profitability.

**EBITDA:** The EBITDA for the last quarter was €0, unchanged from the previous quarter. This shows stability in SAP SE's earnings before interest, taxes, depreciation, and amortization. However, a 100% decrease compared to the same quarter last year suggests some volatility and potential reasons for cautious optimism.

**P/E Ratio:** The current Price-Earnings (P/E) ratio for SAP SE stands at 95.4. This high P/E ratio may indicate overvaluation, suggesting that investors are paying a premium for SAP's earnings and potentially signaling a bearish outlook.

Technical Analysis

**Stock Price:** SAP SE's stock is currently trading at €228.81, experiencing an increase of 4.54% over the last month, indicating a positive short-term trend. Compared to a year ago, the stock price has risen by 74.65%, which signifies a strong positive long-term trend.

**Simple Moving Average (SMA):** The current SMA10 for SAP SE is €223.90, up from the previous SMA10 of €222.78. This upward movement in SMA10 is a positive sign of a potential upward trend in the stock's price movement.

**Relative Strength Index (RSI):** The RSI for SAP SE is currently at 42.8, indicating a neutral condition. An RSI value of 50 is considered neutral, while values above 70 and below 30 indicate overbought and oversold conditions, respectively.

Alternative Data Analysis

**Job Postings and Employee Sentiment:** SAP SE has 2,343 open positions, up 17% in recent months, indicating growth and expansion. This potentially suggests a healthy sign for future company performance. Employee sentiment around the business outlook remains neutral.

**Customer Acquisition and Engagement:** SAP SE's website attracts about 19 million visitors monthly, with stable visitation trends over the past few months. The company's social media presence includes 310,000 Instagram followers and 300,000 Twitter followers, both of which have remained stable over time.

**AltIndex AI Score:** According to AltIndex, which uses AI to predict stock prices based on fundamental, technical, and alternative data, SAP SE has an AI score of 57. This score suggests a "hold" signal, implying cautious optimism regarding the stock's future performance.

Conclusion and Recommendation

In conclusion, SAP SE demonstrates strong revenue growth and a robust short-term net income increase. However, concerns arise from the high P/E ratio, significant year-over-year decline in net income, and zero EBITDA compared to last year. Technically, the stock price is on an upward trend, supported by a positive long-term outlook and a neutral RSI. Alternative data indicates growth and stability in customer engagement and employee sentiment.

With an AI score of 57 suggesting a hold signal, I recommend a cautious "hold" position on SAP SE. Investors may want to monitor the stock closely for signs of stabilizing profitability and maintain an awareness of market conditions that could influence the company's valuation.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.