SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SAF. SAF was compared to 40 industry peers in the Aerospace & Defense industry. SAF has an average financial health and profitability rating. SAF is quite expensive at the moment. It does show a decent growth rate.
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.
In multiple years SAF reported negative net income over the last 5 years.
Each year in the past 5 years SAF had a positive operating cash flow.
1.2 Ratios
SAF has a worse Return On Assets (-1.21%) than 72.50% of its industry peers.
Looking at the Return On Equity, with a value of -6.55%, SAF is doing worse than 70.00% of the companies in the same industry.
SAF has a Return On Invested Capital of 16.38%. This is amongst the best in the industry. SAF outperforms 95.00% of its industry peers.
SAF had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 8.80%.
The last Return On Invested Capital (16.38%) for SAF is above the 3 year average (12.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -6.55% | ||
| ROIC | 16.38% |
ROA(3y)0.12%
ROA(5y)0.27%
ROE(3y)-0.14%
ROE(5y)0.55%
ROIC(3y)12.75%
ROIC(5y)9.35%
1.3 Margins
Looking at the Operating Margin, with a value of 14.48%, SAF belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Operating Margin of SAF has remained more or less at the same level.
With a decent Gross Margin value of 47.88%, SAF is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 | 14.48% | ||
| PM (TTM) | N/A | ||
| GM | 47.88% |
OM growth 3Y23.88%
OM growth 5Y0.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAF is creating value.
SAF has more shares outstanding than it did 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 2.03. 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.
With a Altman-Z score value of 2.03, SAF perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
The Debt to FCF ratio of SAF is 1.50, which is an excellent value as it means it would take SAF, only 1.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SAF (1.50) is better than 90.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that SAF is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, SAF is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.03 |
ROIC/WACC2.09
WACC7.84%
2.3 Liquidity
SAF has a Current Ratio of 0.84. This is a bad value and indicates that SAF is not financially healthy enough and could expect problems in meeting its short term obligations.
SAF has a Current ratio of 0.84. This is amonst the worse of the industry: SAF underperforms 80.00% of its industry peers.
SAF has a Quick Ratio of 0.84. This is a bad value and indicates that SAF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SAF (0.59) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 55.11% over the past year.
The Earnings Per Share has been growing slightly by 3.53% on average over the past years.
The Revenue has grown by 17.19% 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 2.00% on average per year.
EPS 1Y (TTM)55.11%
EPS 3Y61.52%
EPS 5Y3.53%
EPS Q2Q%74.78%
Revenue 1Y (TTM)17.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%16.45%
3.2 Future
SAF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.
The Revenue is expected to grow by 9.08% on average over the next years. This is quite good.
EPS Next Y9.69%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPS Next 5Y11.59%
Revenue Next Year15.64%
Revenue Next 2Y13.32%
Revenue Next 3Y11.1%
Revenue Next 5Y9.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 31.21, SAF can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SAF is valued a bit cheaper than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, SAF is valued at the same level.
Based on the Price/Forward Earnings ratio of 28.45, the valuation of SAF can be described as expensive.
SAF's Price/Forward Earnings is on the same level as the industry average.
SAF's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 28.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAF.
Based on the Price/Free Cash Flow ratio, SAF is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.67 | ||
| EV/EBITDA | 16.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SAF's earnings are expected to grow with 16.36% in the coming years.
PEG (NY)3.22
PEG (5Y)8.85
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
SAF's Dividend Yield is a higher than the industry average which is at 1.37.
Compared to an average S&P500 Dividend Yield of 2.51, SAF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of SAF has a limited annual growth rate of 3.72%.
Dividend Growth(5Y)3.72%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SAF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SAF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-136.58%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPA:SAF (4/25/2025, 9:12:20 AM)
227.5
+6.6 (+2.99%)
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 Cap96.38B
Analysts77.5
Price Target272.51 (19.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.19
Dividend Growth(5Y)3.72%
DP-136.58%
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)3.71%
PT rev (3m)12.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 28.45 | ||
| P/S | 3.48 | ||
| P/FCF | 28.67 | ||
| P/OCF | 20.36 | ||
| P/B | 9.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.69 |
EPS(TTM)7.29
EY3.2%
EPS(NY)8
Fwd EY3.51%
FCF(TTM)7.93
FCFY3.49%
OCF(TTM)11.17
OCFY4.91%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.22
PEG (5Y)8.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -6.55% | ||
| ROCE | 22.84% | ||
| ROIC | 16.38% | ||
| ROICexc | 26.1% | ||
| ROICexgc | N/A | ||
| OM | 14.48% | ||
| PM (TTM) | N/A | ||
| GM | 47.88% | ||
| FCFM | 12.13% |
ROA(3y)0.12%
ROA(5y)0.27%
ROE(3y)-0.14%
ROE(5y)0.55%
ROIC(3y)12.75%
ROIC(5y)9.35%
ROICexc(3y)19.92%
ROICexc(5y)14.09%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.77%
ROCE(5y)13.1%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y74.31%
ROICexc growth 5Y13.81%
OM growth 3Y23.88%
OM growth 5Y0.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y0.81%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 97.58% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2.03 |
F-Score6
WACC7.84%
ROIC/WACC2.09
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)55.11%
EPS 3Y61.52%
EPS 5Y3.53%
EPS Q2Q%74.78%
EPS Next Y9.69%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPS Next 5Y11.59%
Revenue 1Y (TTM)17.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%16.45%
Revenue Next Year15.64%
Revenue Next 2Y13.32%
Revenue Next 3Y11.1%
Revenue Next 5Y9.08%
EBIT growth 1Y22.2%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year49.58%
EBIT Next 3Y22.95%
EBIT Next 5Y15.29%
FCF growth 1Y7.59%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y10.84%
OCF growth 3Y24.78%
OCF growth 5Y8.52%