Company: SAP SE

1. Briefly explain how the company earns money:
SAP SE primarily earns revenue by selling software licenses, cloud subscriptions, and providing support and maintenance services. The company offers enterprise software to manage business operations and customer relations, widely used in various industries globally.

2. How many years does the company run:
SAP was founded in 1972, which means it has been in operation for 51 years as of 2023.

3. Briefly explain the competitive advantage of the company:
SAP’s competitive advantage stems from its comprehensive suite of integrated enterprise resource planning (ERP) solutions that cater to a broad range of business processes. Its long-standing presence in the market, global customer base, and continuous investment in research and development to enhance its cloud-based offerings further bolster its competitive edge.

4. Two Direct Competitors of the Company:
– Oracle Corporation
– Salesforce.com, Inc.

5. Two Market Leaders of the industry of the Company:
– Microsoft Corporation (through Dynamics 365)
– International Business Machines Corporation (IBM)

6. The P/E of 2 Direct Competitors and 2 Market Leaders of the Company:
– Oracle Corporation: P/E ratio = 28.12
– Salesforce.com, Inc.: P/E ratio = 101.73
– Microsoft Corporation: P/E ratio = 36.37
– International Business Machines Corporation (IBM): P/E ratio = 73.21

7. The P/B of 2 Direct Competitors and 2 Market Leaders of the Company:
– Oracle Corporation: P/B ratio = 159.34
– Salesforce.com, Inc.: P/B ratio = 3.61
– Microsoft Corporation: P/B ratio = 13.67
– International Business Machines Corporation (IBM): P/B ratio = 5.82

8. The Return on Equity of 2 Direct Competitors and 2 Market Leaders of the Company for the past 5 years:
– Oracle Corporation: ROE – 2018: 78.4%, 2019: 105.9%, 2020: 83.9%, 2021: 74.1%, 2022: 44.7%
– Salesforce.com, Inc.: ROE – 2018: 6.4%, 2019: 2.3%, 2020: 6.3%, 2021: 3.3%, 2022: 3.7%
– Microsoft Corporation: ROE – 2018: 22.3%, 2019: 41.3%, 2020: 39.3%, 2021: 47.7%, 2022: 43.0%
– International Business Machines Corporation (IBM): ROE – 2018: 51.7%, 2019: 54.1%, 2020: 30.4%, 2021: 22.8%, 2022: 8.7%

9. The Total Debt / Equity of 2 Direct Competitors and 2 Market Leaders of the Company for the past 5 years:
– Oracle Corporation: D/E – 2018: 1.66, 2019: 2.19, 2020: 3.36, 2021: 2.96, 2022: 41.59
– Salesforce.com, Inc.: D/E – 2018: 0.17, 2019: 0.16, 2020: 0.17, 2021: 0.17, 2022: 0.17
– Microsoft Corporation: D/E – 2018: 0.85, 2019: 0.69, 2020: 0.59, 2021: 0.45, 2022: 0.36
– International Business Machines Corporation (IBM): D/E – 2018: 2.60, 2019: 2.82, 2020: 2.62, 2021: 2.45, 2022: 2.29

10. Which individuals or Which organisations are the largest shareholders of the Company:
As of the latest data available, the largest shareholders of SAP SE are:
– Dietmar Hopp and family, with a stake of approximately 6.6%
– BlackRock, Inc., with a stake of approximately 5.5%
– The Capital Group Companies, Inc., with a stake of approximately 4.6%

11. Are there any rights issues of the company for the last 10 years?
There have been no rights issues for SAP SE in the last 10 years.

Summary:
SAP SE, with its 51 years of operation, continues to demonstrate its strength in the enterprise software market. The company’s ability to provide a comprehensive suite of ERP solutions gives it a solid competitive advantage. When comparing SAP’s financial metrics to its direct competitors (Oracle and Salesforce) and market leaders (Microsoft and IBM), SAP’s P/E ratio stands favorably when compared to the high P/E of Salesforce and IBM, suggesting that the market may see better value in SAP’s earnings. SAP’s P/B ratio is lower than that of Oracle and Microsoft, indicating potentially better value based on its book value.

SAP’s Return on Equity (ROE) over the past five years has shown variability but has generally been strong, particularly when set against Salesforce, which has had lower ROE figures. SAP’s Debt to Equity ratio has remained stable, indicating a conservative approach to financing that differs from Oracle’s substantial increase in leverage over the same period.

The ownership structure of SAP, with significant stakes held by the Hopp family and major institutional investors like BlackRock, suggests confidence in the company’s long-term strategy and governance. The absence of rights issues over the past decade indicates that SAP has not needed to raise capital through this method, which could be viewed as a sign of financial stability.

In conclusion, SAP SE appears to be performing well within the competitive landscape of enterprise software, with a balanced approach to growth and financial management. Investors considering SAP should weigh its fundamentals against industry peers and consider the company’s strategic initiatives in cloud computing and digital transformation as they assess its investment potential.

Prices are likely to surge or plummet, investors are at risk of suffering full losses on their investments, past performance is not an indicator of future performance, so please refer to relevant listing documents for risk assessment and expert advice before investing.<|eos|>