Revenue Breakdown
Composition ()
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Revenue Streams
SAP SE (SAP) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Applications, Technology & Service, accounting for 91.7% of total sales, equivalent to $7.89B. Other significant revenue streams include Cost of cloud and Software support. Understanding this composition is critical for investors evaluating how SAP navigates market cycles within the Software industry.
Profitability & Margins
Evaluating the bottom line, SAP SE maintains a gross margin of 73.77%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 28.26%, while the net margin is 22.60%. These profitability ratios, combined with a Return on Equity (ROE) of 16.31%, provide a clear picture of how effectively SAP converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, SAP competes directly with industry leaders such as CRM and APP. With a market capitalization of $273.23B, it holds a leading position in the sector. When comparing efficiency, SAP's gross margin of 73.77% stands against CRM's 78.02% and APP's 87.56%. Such benchmarking helps identify whether SAP SE is trading at a premium or discount relative to its financial performance.
