What Makes SAP SE (SAP) an Attractive Investment?

Group 1: SGA Global Growth Strategy Overview - SGA's Global Growth Strategy portfolio returned -2.3% (Gross) and -2.5% (Net) in Q3 2025, underperforming the MSCI ACWI's 7.6% and MSCI ACWI Growth's 9.0% returns, primarily due to enthusiasm for AI overshadowing factors like quality and sales stability [1] - The investment objective of SGA is to invest in high-quality growth businesses expected to achieve consistent mid-teens earnings growth, along with stable revenue and cash flow [1] Group 2: SAP SE Analysis - SAP SE is a leading provider of enterprise application and business solutions, with a one-month return of 2.49% and a 52-week loss of 4.10%, closing at $236.92 per share on January 2, 2026, with a market capitalization of $276.437 billion [2] - SAP is recognized as the global leader in ERP application software, serving over 100,000 customers across more than 120 countries, and generates significant free cash flow from recurring, high-margin software maintenance and cloud subscription fees [3] - The enterprise application software market is projected to grow at mid-to-high single-digit rates annually, with SAP's transition from license to subscription expected to yield more predictable and substantial recurring cash flows over time, evidenced by over 25% organic order growth in cloud subscription products [3]