German stock alert


Afternoon Alert: SAP increases 1.3%, leads market higher 21 September 2018 13:15 CEST


SAP SE (ETR:SAP) has increased 1.3% to trade at EUR102.92 vs. the DAX Index which strengthened 90.6 points (or 0.7%) to 12,417.1. Representing a weighting of about 11.3% of the index, the stock accounted for 19.2% of today's gain. The shares have outperformed 91% of the market in the past six months. Trading volume was 73% of average so far today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 0.24 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 2.2% discount to 12-month high of EUR105.28 against the 27.3% premium to 12-month low of EUR80.87 suggests the stock continues to push for new highs.

Fundamental measures by comparison with the sector average [in brackets] indicate:


+ Dividend yield of 1.4% [0.4%]

+ Return on Capital Employed 16.4% [12.9%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 19.1 times.

+ Total Liabilities/EBITDA of 3.2 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 16.2% in the last 3 years. This is considered superior and suggests a high margin of safety.


Bearish Signals:

The price decreased 1.2% in the last week.

Tobin's Q Ratio is 3. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Revenue and Net Profit growth have shown signs of deterioration in recent quarters.

Fundamental measures by comparison with the sector average [in brackets] indicate:


Price/Earnings/Growth of 4.47 [3.2]


ISIN: DE0007164600

PermID: 4295868698