German stock alert


Afternoon Alert: SAP hits 52-week high eighth time in five months 20 October 2017 13:16 CEST


SAP SE (ETR:SAP) hit a 52-week high of EUR96.49 today for the eighth time in the past five months and last traded at EUR95.24. Trading volume was 2.0 times average so far today.

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

+ The positive 1.08 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high once.

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 7.3% of the estimated Enterprise Value of EUR121.2 billion (US$143.6 billion).

+ As per the Du Pont analysis, Return on Equity of 13.7% is better than sector average of 9.1%.


The stock has underperformed 52% of the Xetra market over the past 6 months.

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 1.3% discount to 12-month high of EUR96.49 against the 28.6% premium to 12-month low of EUR74.08 suggests the climb might be peaking.


ISIN: DE0007164600

PermID: 4295868698