What Makes SAP SE (SAP) an Attractive Investment?

1 week ago 7

Soumya Eswaran

Mon, January 5, 2026 astatine 6:46 AM CST 4 min read

Sustainable Growth Advisers (SGA), an concern absorption company, released its third-quarter capitalist missive for its “Global Growth Strategy.” A transcript of the missive tin beryllium downloaded here. The portfolio returned -2.3% (Gross) and -2.5% (Net) successful the 3rd quarter, compared to a 7.6% instrumentality for the MSCI ACWI and a 9.0% instrumentality for the MSCI ACWI Growth. The scale returns were fueled by enthusiasm for AI, whereas factors aligned with SGA’s strategy, similar prime and income stability, lagged. SGA’s concern nonsubjective is to put successful high-quality maturation businesses expected to execute accordant mid-teens net growth, accompanied by unchangeable gross and currency flow. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, SGA Global Growth Strategy highlighted stocks specified arsenic SAP SE (NYSE:SAP). SAP SE (NYSE:SAP) is simply a starring endeavor exertion and concern solutions provider. The one-month instrumentality of SAP SE (NYSE:SAP) was 2.49%, and its shares mislaid 4.10% of their worth implicit the past 52 weeks. On January 2, 2026, SAP SE (NYSE:SAP) banal closed astatine $236.92 per share, with a marketplace capitalization of $276.437billion.

SGA Global Growth Strategy stated the pursuing regarding SAP SE (NYSE:SAP) successful its 3rd 4th 2025 capitalist letter:

"SAP SE (NYSE:SAP) is the planetary person successful endeavor assets readying (ERP) exertion software, with its flagship Business Suite helping organizations automate and amended operations, proviso chains, finances, lawsuit relationships, and spouse collaborations. Founded successful 1972 and based successful Germany, SAP serves implicit 100,000 customers successful much than 120 countries, targeting ample enterprises, small-to-medium businesses, authorities agencies, and acquisition institutions. The institution is broadly diversified by customer, geography, and industry, and generates important escaped currency travel from highly recurring, high-margin bundle attraction and unreality subscription fees. SAP operates successful an oligopolistic industry, enjoying beardown pricing powerfulness connected maintenance, support, and unreality contracts, with 80% of gross and an adjacent larger information of profits coming from recurring unreality subscription and bundle attraction fees. The endeavor exertion bundle marketplace is expected to turn annually astatine mid-to-high single-digit rates. As clients upgrade to SAP’s unreality solutions, including the S/4 Hana ERP platform, the modulation from licence to subscription is expected to nutrient much predictable and important recurring currency flows implicit time. SAP’s caller results show effectual selling of unreality subscription products, with implicit 25% integrated bid growth.