Description
This is our first report on SAP, the global ERP, market leader. The company delivered a mixed quarterly result as it managed to surpass Wall Street expectations on the revenue front with a strong double-digit cloud order entry growth but missed out on meeting earnings expectations. SAP’s performance in the North American and Latin American markets is particularly robust. Larger cloud transactions are becoming more common. The company’s cloud revenue has gradually become its largest revenue stream which is a positive development. The ERP transfer to the cloud is being led by SAP, which created the technology decades ago. Because of this, SAP S/4HANA currently has a cloud backlog of approximately over $2 billion. The company continued to onboard new clients and also added some important updates to SAP SuccessFactors Human Experience Management (HXM) – a field where it faces fierce competition from Workday. We initiate coverage on the stock of SAP with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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