Trade-Ideas LLC identified

SAP SE

(

SAP

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified SAP SE as such a stock due to the following factors:

  • SAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $128.5 million.
  • SAP has traded 77,523 shares today.
  • SAP is trading at a new lifetime high.

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More details on SAP:

SAP SE provides application and analytics software and software-related services for enterprises worldwide. The stock currently has a dividend yield of 1.1%. SAP has a PE ratio of 31. Currently there are 6 analysts that rate SAP SE a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for SAP SE has been 1.1 million shares per day over the past 30 days. SAP SE has a market cap of $104.8 billion and is part of the technology sector and computer software & services industry. Shares are up 8.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates SAP SE as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, SAP SE's return on equity exceeds that of both the industry average and the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • The gross profit margin for SAP SE is currently very high, coming in at 70.53%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.68% trails the industry average.

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