SAPNEUTRAL

SAP Return on Equity (ROE) Analysis

16.4%

Higher than 64% of Technology sector peers

Updated 48h ago·SEC filings & market data

Key Takeaway

SAP’s Return on Equity (ROE) of 16.4% means that for every dollar of shareholder equity, the company generated $0.164 in profit over the past year — a measure of how efficiently management uses invested capital.

Sector Performance

64th percentile

SAP

16.4%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

16.0%(May 2026)

↑ Improving

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Deep Analysis

This sits well above the technology sector median of 6.8%, placing SAP in the 64th percentile among its peers. The year-over-year change is not available, but quarter-over-quarter the metric improved by 2.5 percentage points, from 16.0% to 16.4%. The combination of an already above‑median ROE with a recent uptick suggests stable profitability without dramatic shifts, posing neither a clear risk nor a strong opportunity. This performance supports the overall NEUTRAL verdict: the ROE is solid relative to the sector, but not so exceptional as to change the stock’s balanced outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SAP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SAP's Return on Equity (ROE) compare to its sector?

SAP's Return on Equity (ROE) of 16.4% compares to a Technology sector median of 6.8%, placing it in the 64th percentile.

Who are SAP's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: AKAM (9.1%), ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.