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SAP's Rise with SAP Solution Witnesses Continued Momentum

·4 min read

SAP SE SAP recently announced that Nippon Gases Europe deployed its latest Rise with SAP solution to overhaul its enterprise resource planning (ERP) systems across its European operations.

Nippon Gases Europe is working toward setting up a unified ERP system based on SAP’s S/4HANA solution.

SAP’s S/4HANA is an extensive ERP solution embedded with the latest technologies like machine learning, AI and advanced analytics, which enables businesses to upgrade operations. SAP considers Rise with SAP as an important catalyst for fueling the adoption of the company’s S/4HANA Cloud and Business Technology Platform.

ERP systems powered by S/4HANA will aid Nippon Gases to gain an improved overview of gas deliveries and help in adherence to compliance requirements. Rise with SAP solution will provide Nippon Gases with various software components, noted SAP.

In the past, Nippon Gases worked with multiple ERP solutions which needed much maintenance, and servicing and constant updates to ensure seamless data exchange data between divisions. Since the system administration team will work with only one unified ERP system, it will reduce costs and time taken for executing administrative tasks for Nippon Gases, going ahead, added SAP.

Nippon Gases’ first unified ERP site went live in the U.K. in 2021. The company plans to set up more sites in other countries beginning from 2022.

SAP SE Price and Consensus

SAP SE Price and Consensus
SAP SE Price and Consensus

SAP SE price-consensus-chart | SAP SE Quote

Nippon Gases Europe is a prominent name in the industrial and medical gases market in the region with a 150,000-strong customer base across industries like metal production and metallurgy, chemical, electronics, food and beverage, medical and pharmaceutical, among others. It is a part of the Japan-based Nippon Sanso Holdings Corporation.

SAP’s Latest Solution Driving Performance

SAP unveiled Rise with SAP offering in first-quarter 2021 and now has a 1,300-strong client base since the rollout. SAP's last-quarter performance gained from strength in its cloud business, especially the Rise with SAP solution.

In the last reported quarter, SAP reported total revenues, on a non-IFRS basis, were €7.981 billion ($9.128 billion), rising 6% year over year (up 3% at constant currency or cc).

S/4HANA adoption rallied more than 18% (or 1300 new clients) year over year to around 18,800 customers. In the last reported quarter, net new customers comprised 50% of additional S/4HANA customers. More companies have begun deploying the S/4HANA solution in part or entirely in the cloud. SAP S/4HANA Cloud revenues increased 65% (up 61% at cc) to €329 million.

For 2022, SAP anticipates cloud revenues in the range of €11.55-€11.85 billion, suggesting an increase of 23-26% at cc. Cloud and software revenue is now expected between €25 billion and €25.5 billion, calling for a 4-6% rise at cc.

Zacks Rank & Stocks to Consider

Currently, SAP has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks worth considering from the broader technology sector include Broadcom AVGO, Apple AAPL and Texas Instruments TXN. Apple and Texas Instruments sport a Zacks Rank #1 (Strong Buy), while Broadcom carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.18 per share. The long-term earnings growth rate of the company is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 25.8% in the past year.

The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share. The long-term earnings growth rate of the company is pegged at 12.5%.

Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 32.8% in the past year.

The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.

Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 0.5% in the past year.


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