SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SAF. SAF was compared to 40 industry peers in the Aerospace & Defense industry. SAF has an excellent profitability rating, but 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! These ratings could make SAF a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
SAF had positive earnings in the past year.
SAF had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.09%, SAF perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
SAF has a Return On Equity (14.60%) which is in line with its industry peers.
SAF's Return On Invested Capital of 13.97% is amongst the best of the industry. SAF outperforms 86.49% 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 8.88%.
The last Return On Invested Capital (13.97%) for SAF is above the 3 year average (8.54%), which is a sign of increasing profitability.
| 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 line with its industry, outperforming 59.46% of the companies in the same industry.
In the last couple of years the Profit Margin of SAF has grown nicely.
The Operating Margin of SAF (14.32%) is better than 89.19% of its industry peers.
SAF's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 42.99%, SAF is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SAF is creating value.
The number of shares outstanding for SAF has been reduced compared to 1 year ago.
Compared to 5 years ago, SAF has less shares outstanding
The debt/assets ratio for SAF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.28 indicates that SAF is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, SAF is in line with its industry, outperforming 59.46% of the companies in the same industry.
The Debt to FCF ratio of SAF is 1.63, which is an excellent value as it means it would take SAF, only 1.63 years of fcf income to pay off all of its debts.
SAF's Debt to FCF ratio of 1.63 is amongst the best of the industry. SAF outperforms 91.89% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that SAF is not too dependend on debt financing.
SAF has a Debt to Equity ratio of 0.42. This is in the better half of the industry: SAF outperforms 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.89
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.88 indicates that SAF may have some problems paying its short term obligations.
The Current ratio of SAF (0.88) is worse than 86.49% of its industry peers.
A Quick Ratio of 0.61 indicates that SAF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, SAF is doing worse than 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
SAF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.30%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.83% on average over the past years.
SAF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.06%.
SAF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.38% yearly.
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
SAF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.21% yearly.
The Revenue is expected to grow by 10.90% on average over the next years. This is quite good.
EPS Next Y44.96%
EPS Next 2Y32.19%
EPS Next 3Y28.08%
EPS Next 5Y20.21%
Revenue Next Year16.88%
Revenue Next 2Y15.94%
Revenue Next 3Y14.15%
Revenue Next 5Y10.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 43.09, the valuation of SAF can be described as expensive.
SAF's Price/Earnings ratio is in line with the industry average.
SAF is valuated expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.22, which means the current valuation is very expensive for SAF.
Based on the Price/Forward Earnings ratio, SAF is valued a bit more expensive than the industry average as 70.27% of the companies are valued more cheaply.
SAF is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.09 | ||
| Fwd PE | 29.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAF is valued a bit more expensive than 67.57% of the companies in the same industry.
64.86% of the companies in the same industry are more expensive than SAF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.9 | ||
| EV/EBITDA | 19.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SAF has a very decent profitability rating, which may justify a higher PE ratio.
SAF's earnings are expected to grow with 28.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)51.99
EPS Next 2Y32.19%
EPS Next 3Y28.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, SAF is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.41, SAF has a dividend in line with its industry peers.
With a Dividend Yield of 0.92, SAF pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
SAF pays out 55.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP55.62%
EPS Next 2Y32.19%
EPS Next 3Y28.08%
SAFRAN SA
EPA:SAF (2/4/2025, 7:00:00 PM)
240
+0.3 (+0.13%)
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 Cap102.54B
Analysts74.62
Price Target246.9 (2.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.35
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)2.36%
PT rev (3m)6.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.42%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.09 | ||
| Fwd PE | 29.22 | ||
| P/S | 3.99 | ||
| P/FCF | 32.9 | ||
| P/OCF | 23.16 | ||
| P/B | 9.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.92 |
EPS(TTM)5.57
EY2.32%
EPS(NY)8.21
Fwd EY3.42%
FCF(TTM)7.3
FCFY3.04%
OCF(TTM)10.36
OCFY4.32%
SpS60.21
BVpS26.26
TBVpS-3.36
PEG (NY)0.96
PEG (5Y)51.99
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 | 2.28 |
F-Score6
WACC7.4%
ROIC/WACC1.89
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 Y44.96%
EPS Next 2Y32.19%
EPS Next 3Y28.08%
EPS Next 5Y20.21%
Revenue 1Y (TTM)17.06%
Revenue growth 3Y12.45%
Revenue growth 5Y2.38%
Sales Q2Q%19.21%
Revenue Next Year16.88%
Revenue Next 2Y15.94%
Revenue Next 3Y14.15%
Revenue Next 5Y10.9%
EBIT growth 1Y20.6%
EBIT growth 3Y32.04%
EBIT growth 5Y9.91%
EBIT Next Year68.35%
EBIT Next 3Y30.44%
EBIT Next 5Y20.91%
FCF growth 1Y14.76%
FCF growth 3Y40.35%
FCF growth 5Y9.73%
OCF growth 1Y27.29%
OCF growth 3Y31.78%
OCF growth 5Y6.81%