SAFRAN SA (SAF.PA)
FR0000073272 - Common Stock
Taking everything into account, SAF scores 6 out of 10 in our fundamental rating. SAF was compared to 36 industry peers in the Aerospace & Defense industry. While SAF belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SAF is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes SAF very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SAF was profitable.
In the past year SAF had a positive cash flow from operations.
SAF had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SAF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.09%, SAF is in line with its industry, outperforming 55.88% of the companies in the same industry.
With a Return On Equity value of 14.60%, SAF perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
SAF has a Return On Invested Capital of 13.97%. This is amongst the best in the industry. SAF outperforms 85.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAF is in line with the industry average of 8.84%.
The 3 year average ROIC (8.54%) for SAF is below the current ROIC(13.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 14.6% | ||
| ROIC | 13.97% |
ROA(3y)0.56%
ROA(5y)1.66%
ROE(3y)2.15%
ROE(5y)5.82%
ROIC(3y)8.54%
ROIC(5y)8.47%
1.3 Margins
Looking at the Profit Margin, with a value of 6.37%, SAF is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
In the last couple of years the Profit Margin of SAF has grown nicely.
Looking at the Operating Margin, with a value of 14.32%, SAF belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
SAF's Operating Margin has improved in the last couple of years.
SAF has a Gross Margin of 42.99%. This is in the better half of the industry: SAF outperforms 64.71% of its industry peers.
SAF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.32% | ||
| PM (TTM) | 6.37% | ||
| GM | 42.99% |
OM growth 3Y17.41%
OM growth 5Y7.35%
PM growth 3Y90.19%
PM growth 5Y19%
GM growth 3Y0.57%
GM growth 5Y1.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAF is creating value.
The number of shares outstanding for SAF has been reduced compared to 1 year ago.
SAF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAF has been reduced compared to a year ago.
2.2 Solvency
SAF has an Altman-Z score of 2.11. This is not the best score and indicates that SAF is in the grey zone with still only limited risk for bankruptcy at the moment.
SAF has a Altman-Z score (2.11) which is comparable to the rest of the industry.
SAF has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.63, SAF belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
SAF has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, SAF is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.88
WACC7.44%
2.3 Liquidity
A Current Ratio of 0.88 indicates that SAF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, SAF is doing worse than 88.24% of the companies in the same industry.
SAF has a Quick Ratio of 0.88. This is a bad value and indicates that SAF is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.61, SAF is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.30% over the past year.
Measured over the past 5 years, SAF shows a small growth in Earnings Per Share. The EPS has been growing by 0.83% on average per year.
The Revenue has grown by 17.06% in the past year. This is quite good.
Measured over the past years, SAF shows a small growth in Revenue. The Revenue has been growing by 2.38% on average per year.
EPS 1Y (TTM)44.3%
EPS 3Y34.77%
EPS 5Y0.83%
EPS Q2Q%36.25%
Revenue 1Y (TTM)17.06%
Revenue growth 3Y12.45%
Revenue growth 5Y2.38%
Sales Q2Q%19.21%
3.2 Future
Based on estimates for the next years, SAF will show a very strong growth in Earnings Per Share. The EPS will grow by 20.04% on average per year.
Based on estimates for the next years, SAF will show a quite strong growth in Revenue. The Revenue will grow by 11.02% on average per year.
EPS Next Y44.36%
EPS Next 2Y32.67%
EPS Next 3Y28.43%
EPS Next 5Y20.04%
Revenue Next Year17.13%
Revenue Next 2Y16.15%
Revenue Next 3Y14.16%
Revenue Next 5Y11.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SAF is valuated quite expensively with a Price/Earnings ratio of 37.76.
Based on the Price/Earnings ratio, SAF is valued a bit more expensive than 61.76% of the companies in the same industry.
SAF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.35.
SAF is valuated quite expensively with a Price/Forward Earnings ratio of 25.43.
Based on the Price/Forward Earnings ratio, SAF is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of SAF to the average of the S&P500 Index (23.86), we can say SAF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAF is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAF indicates a somewhat cheap valuation: SAF is cheaper than 61.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.83 | ||
| EV/EBITDA | 17.49 |
4.3 Compensation for Growth
SAF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SAF may justify a higher PE ratio.
SAF's earnings are expected to grow with 28.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)45.57
EPS Next 2Y32.67%
EPS Next 3Y28.43%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.05%.
SAF's Dividend Yield is comparable with the industry average which is at 1.49.
Compared to an average S&P500 Dividend Yield of 2.30, SAF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of SAF decreases each year by -3.97%.
Dividend Growth(5Y)-3.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
55.62% of the earnings are spent on dividend by SAF. This is a bit on the high side, but may be sustainable.
DP55.62%
EPS Next 2Y32.67%
EPS Next 3Y28.43%
SAFRAN SA
EPA:SAF (12/30/2024, 5:29:52 PM)
210.35
-0.65 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners42.12%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap89.87B
Analysts75.38
Price Target241.2 (14.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Dividend Growth(5Y)-3.97%
DP55.62%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.39%
PT rev (3m)5.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 25.43 | ||
| P/S | 3.49 | ||
| P/FCF | 28.83 | ||
| P/OCF | 20.3 | ||
| P/B | 8.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.49 |
EPS(TTM)5.57
EY2.65%
EPS(NY)8.27
Fwd EY3.93%
FCF(TTM)7.3
FCFY3.47%
OCF(TTM)10.36
OCFY4.93%
SpS60.21
BVpS26.26
TBVpS-3.36
PEG (NY)0.85
PEG (5Y)45.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 14.6% | ||
| ROCE | 19.49% | ||
| ROIC | 13.97% | ||
| ROICexc | 20.06% | ||
| ROICexgc | 292.79% | ||
| OM | 14.32% | ||
| PM (TTM) | 6.37% | ||
| GM | 42.99% | ||
| FCFM | 12.12% |
ROA(3y)0.56%
ROA(5y)1.66%
ROE(3y)2.15%
ROE(5y)5.82%
ROIC(3y)8.54%
ROIC(5y)8.47%
ROICexc(3y)12.86%
ROICexc(5y)11.6%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.91%
ROCE(5y)12.16%
ROICexcg growth 3Y159.25%
ROICexcg growth 5Y55.32%
ROICexc growth 3Y47.17%
ROICexc growth 5Y17.38%
OM growth 3Y17.41%
OM growth 5Y7.35%
PM growth 3Y90.19%
PM growth 5Y19%
GM growth 3Y0.57%
GM growth 5Y1.7%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 95.27% | ||
| Cap/Sales | 5.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.52% | ||
| Profit Quality | 190.29% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.11 |
F-Score6
WACC7.44%
ROIC/WACC1.88
Cap/Depr(3y)64.53%
Cap/Depr(5y)62.95%
Cap/Sales(3y)4.5%
Cap/Sales(5y)4.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.3%
EPS 3Y34.77%
EPS 5Y0.83%
EPS Q2Q%36.25%
EPS Next Y44.36%
EPS Next 2Y32.67%
EPS Next 3Y28.43%
EPS Next 5Y20.04%
Revenue 1Y (TTM)17.06%
Revenue growth 3Y12.45%
Revenue growth 5Y2.38%
Sales Q2Q%19.21%
Revenue Next Year17.13%
Revenue Next 2Y16.15%
Revenue Next 3Y14.16%
Revenue Next 5Y11.02%
EBIT growth 1Y20.6%
EBIT growth 3Y32.04%
EBIT growth 5Y9.91%
EBIT Next Year68.35%
EBIT Next 3Y30.44%
EBIT Next 5Y21.61%
FCF growth 1Y14.76%
FCF growth 3Y40.35%
FCF growth 5Y9.73%
OCF growth 1Y27.29%
OCF growth 3Y31.78%
OCF growth 5Y6.81%