German stock alert


Afternoon Alert: SAP increases 1.0%, leads market higher 18 October 2017 13:14 CEST


SAP SE (ETR:SAP) has increased 1.0% to trade at EUR95.48 vs. the DAX Index which strengthened 64.8 points (or 0.5%) to 13,059.9. Representing a weighting of about 9.8% of the index, the stock accounted for 19.8% of today's gain.

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

+ The positive 1.13 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Other Bullish Signals include:

+ Interest cover is less leveraged at 19.1 times.

+ Total Liabilities/EBITDA of 3.5 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 16.6% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents 7.4% of the estimated Enterprise Value of EUR121.5 billion (US$142.7 billion).

+ As per the Du Pont analysis, Return on Equity of 13.7% is better than sector average of 9.0%.


Bearish Signals:

Tobin's Q Ratio is 2.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.


The 0.9% discount to 12-month high of EUR96.38 against the 28.9% premium to 12-month low of EUR74.08 suggests the climb might be peaking.


ISIN: DE0007164600

PermID: 4295868698