SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
Taking everything into account, SAF scores 4 out of 10 in our fundamental rating. SAF was compared to 38 industry peers in the Aerospace & Defense industry. SAF has only an average score on both its financial health and profitability. SAF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SAF had negative earnings in the past year.
SAF had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SAF reported negative net income in multiple years.
SAF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAF has a Return On Assets (3.09%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 14.60%, SAF is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
SAF's Return On Invested Capital of 13.97% is amongst the best of the industry. SAF outperforms 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 14.6% | ||
| ROIC | 13.97% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SAF (6.37%) is better than 60.53% of its industry peers.
With an excellent Operating Margin value of 14.32%, SAF belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
SAF's Operating Margin has been stable in the last couple of years.
SAF's Gross Margin of 51.59% is fine compared to the rest of the industry. SAF outperforms 78.95% of its industry peers.
In the last couple of years the Gross Margin of SAF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.32% | ||
| PM (TTM) | 6.37% | ||
| GM | 51.59% |
OM growth 3Y23.2%
OM growth 5Y-0.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
SAF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for SAF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SAF has an Altman-Z score of 2.34. 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 (2.34) which is in line with its industry peers.
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.
SAF has a Debt to FCF ratio of 1.63. This is amongst the best in the industry. SAF outperforms 94.74% 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 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.75
WACC7.99%
2.3 Liquidity
SAF has a Current 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.
Looking at the Current ratio, with a value of 0.88, SAF is doing worse than 76.32% 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 perfoms like the industry average, outperforming 44.74% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -117.89%.
SAF shows a strong growth in Revenue. In the last year, the Revenue has grown by 73.02%.
Measured over the past years, SAF shows a small growth in Revenue. The Revenue has been growing by 2.00% on average per year.
EPS 1Y (TTM)-117.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-140.68%
Revenue 1Y (TTM)73.02%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%126.18%
3.2 Future
The Earnings Per Share is expected to grow by 14.35% on average over the next years. This is quite good.
Based on estimates for the next years, SAF will show a quite strong growth in Revenue. The Revenue will grow by 9.42% on average per year.
EPS Next Y19.05%
EPS Next 2Y20.78%
EPS Next 3Y17.86%
EPS Next 5Y14.35%
Revenue Next Year15.64%
Revenue Next 2Y13.32%
Revenue Next 3Y11.1%
Revenue Next 5Y9.42%
3.3 Evolution
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
SAF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 30.53, the valuation of SAF can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SAF.
SAF is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.53 |
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 68.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.09 | ||
| EV/EBITDA | 20.67 |
4.3 Compensation for Growth
SAF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SAF's earnings are expected to grow with 17.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.78%
EPS Next 3Y17.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, SAF is not a good candidate for dividend investing.
SAF's Dividend Yield is a higher than the industry average which is at 1.22.
With a Dividend Yield of 0.85, SAF pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 2Y20.78%
EPS Next 3Y17.86%
EPA:SAF (3/7/2025, 7:00:00 PM)
250.8
-7.9 (-3.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.36%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap106.25B
Analysts76
Price Target262.76 (4.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)6.43%
PT rev (3m)10.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.53 | ||
| P/S | 4.13 | ||
| P/FCF | 34.09 | ||
| P/OCF | 24 | ||
| P/B | 9.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.67 |
EPS(TTM)-1.47
EYN/A
EPS(NY)8.22
Fwd EY3.28%
FCF(TTM)7.36
FCFY2.93%
OCF(TTM)10.45
OCFY4.17%
SpS60.73
BVpS26.48
TBVpS-3.39
PEG (NY)N/A
PEG (5Y)N/A
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 | 51.59% | ||
| FCFM | 12.12% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y23.2%
OM growth 5Y-0.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y0.81%
F-Score7
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 | 2.34 |
F-Score7
WACC7.99%
ROIC/WACC1.75
Cap/Depr(3y)80.08%
Cap/Depr(5y)68.41%
Cap/Sales(3y)4.6%
Cap/Sales(5y)4.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-117.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-140.68%
EPS Next Y19.05%
EPS Next 2Y20.78%
EPS Next 3Y17.86%
EPS Next 5Y14.35%
Revenue 1Y (TTM)73.02%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%126.18%
Revenue Next Year15.64%
Revenue Next 2Y13.32%
Revenue Next 3Y11.1%
Revenue Next 5Y9.42%
EBIT growth 1Y20.6%
EBIT growth 3Y50.74%
EBIT growth 5Y1.74%
EBIT Next Year49.08%
EBIT Next 3Y22.41%
EBIT Next 5Y18.49%
FCF growth 1Y18.38%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y25.2%
OCF growth 3Y24.78%
OCF growth 5Y8.52%