Earnings of the week (21Oct24) - should we get some SAP?
Earnings Calendar (21Oct24)
Q4/2024 has started. We have some interesting earnings namely, SAP, GM, Tesla, UPS and IBM.
Let us look at SAP.
Observations of SAP:
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Revenue grew from $21.6 billion in 2014 to $34 billion in 2023.
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Gross profit grew from $15.5 billion in 2014 to $24.5 billion in 2023.
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Operating profit grew from $5.8 billion in 2014 to $6.5 billion in 2023.
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Earnings per share EPS grew from $3.38 in 2014 to $5.67 in 2023.
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The 10-year median margins for gross profit is at 70.7% and 16.1% for free cash flow (FCF).
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The P/E ratio stands at 94.3.
The stock price grew 76% from a year ago.
The Technical Analysis recommends a “STRONG BUY”.
The Analysts Sentiment recommends a “BUY” rating with a price target of $242.19 that represents an upside of 5.10%.
For the coming earnings, the forecast of its EPS and revenue are $1.32 and $9.26 Billion.
The expenses in SAP is concerning as the increase of its expenses is more than the increase of its revenue, thus leading to the most recent operating income.
With a P/E ratio of over 94, this seems a tad expensive. I prefer to monitor the stock.
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- VernaFred·10-21 16:32I agree with your cautious approach.LikeReport