Sap AG ADR Stock Buy Recommendation Reiterated (SAP)
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- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Software industry and the overall market, SAP AG's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for SAP AG is currently very high, coming in at 74.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.10% significantly outperformed against the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- SAP, with its decline in revenue, underperformed when compared the industry average of 6.3%. Since the same quarter one year prior, revenues slightly dropped by 3.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
--Written by a member of TheStreet Ratings Staff.
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