SAFRAN SA (SEJ1.DE) Stock Fundamental Analysis
Europe - FRA:SEJ1 - FR0000073272 - Common Stock
304.1 EUR
-4.1 (-1.33%)
Taking everything into account, SEJ1 scores 6 out of 10 in our fundamental rating. SEJ1 was compared to 42 industry peers in the Aerospace & Defense industry. While SEJ1 has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, SEJ1 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SEJ1 had positive earnings in the past year.
In the past year SEJ1 had a positive cash flow from operations.
In multiple years SEJ1 reported negative net income over the last 5 years.
SEJ1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SEJ1's Return On Assets of 7.70% is amongst the best of the industry. SEJ1 outperforms 90.48% of its industry peers.
SEJ1's Return On Equity of 32.68% is amongst the best of the industry. SEJ1 outperforms 90.48% of its industry peers.
With an excellent Return On Invested Capital value of 17.52%, SEJ1 belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
SEJ1 had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 9.51%.
The last Return On Invested Capital (17.52%) for SEJ1 is above the 3 year average (12.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 32.68% | ||
| ROIC | 17.52% |
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
SEJ1 has a Profit Margin of 14.71%. This is amongst the best in the industry. SEJ1 outperforms 92.86% of its industry peers.
Looking at the Operating Margin, with a value of 15.95%, SEJ1 belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of SEJ1 has remained more or less at the same level.
SEJ1 has a better Gross Margin (48.81%) than 73.81% of its industry peers.
In the last couple of years the Gross Margin of SEJ1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.95% | ||
| PM (TTM) | 14.71% | ||
| GM | 48.81% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SEJ1 is creating value.
The number of shares outstanding for SEJ1 has been increased compared to 1 year ago.
SEJ1 has less shares outstanding than it did 5 years ago.
SEJ1 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.81 indicates that SEJ1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
SEJ1's Altman-Z score of 2.81 is in line compared to the rest of the industry. SEJ1 outperforms 54.76% of its industry peers.
SEJ1 has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.37, SEJ1 belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
SEJ1 has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, SEJ1 is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.81 |
ROIC/WACC2.18
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.93 indicates that SEJ1 may have some problems paying its short term obligations.
SEJ1 has a worse Current ratio (0.93) than 83.33% of its industry peers.
SEJ1 has a Quick Ratio of 0.93. This is a bad value and indicates that SEJ1 is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SEJ1 (0.66) is comparable to the rest of the industry.
The current and quick ratio evaluation for SEJ1 is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
SEJ1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.39%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.53% on average over the past years.
SEJ1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.19%.
Measured over the past years, SEJ1 shows a small growth in Revenue. The Revenue has been growing by 2.00% on average per year.
EPS 1Y (TTM)40.39%
EPS 3Y61.52%
EPS 5Y3.53%
EPS Q2Q%16.21%
Revenue 1Y (TTM)14.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%13.2%
3.2 Future
The Earnings Per Share is expected to grow by 15.34% on average over the next years. This is quite good.
SEJ1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y14.14%
EPS Next 2Y20.42%
EPS Next 3Y18.2%
EPS Next 5Y15.34%
Revenue Next Year14.52%
Revenue Next 2Y13.34%
Revenue Next 3Y11.9%
Revenue Next 5Y9.61%
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
A Price/Earnings ratio of 38.89 indicates a quite expensive valuation of SEJ1.
Compared to the rest of the industry, the Price/Earnings ratio of SEJ1 indicates a somewhat cheap valuation: SEJ1 is cheaper than 61.90% of the companies listed in the same industry.
SEJ1's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.57.
With a Price/Forward Earnings ratio of 28.77, SEJ1 can be considered very expensive at the moment.
SEJ1's Price/Forward Earnings ratio is in line with the industry average.
SEJ1 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 28.77 |
4.2 Price Multiples
SEJ1's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SEJ1 is valued a bit cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.43 | ||
| EV/EBITDA | 21.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SEJ1 does not grow enough to justify the current Price/Earnings ratio.
SEJ1 has an outstanding profitability rating, which may justify a higher PE ratio.
SEJ1's earnings are expected to grow with 18.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.75
PEG (5Y)11.03
EPS Next 2Y20.42%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
SEJ1 has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, SEJ1 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, SEJ1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of SEJ1 has a limited annual growth rate of 3.72%.
Dividend Growth(5Y)3.72%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SEJ1 pays out 28.14% of its income as dividend. This is a sustainable payout ratio.
SEJ1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.14%
EPS Next 2Y20.42%
EPS Next 3Y18.2%
FRA:SEJ1 (10/22/2025, 7:00:00 PM)
304.1
-4.1 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners43.54%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap128.83B
Revenue(TTM)29.38B
Net Income(TTM)4.32B
Analysts79.2
Price Target317.12 (4.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend2.19
Dividend Growth(5Y)3.72%
DP28.14%
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)0.41%
PT rev (3m)14.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.56%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.89 | ||
| Fwd PE | 28.77 | ||
| P/S | 4.39 | ||
| P/FCF | 34.43 | ||
| P/OCF | 25.09 | ||
| P/B | 9.74 | ||
| P/tB | 239.45 | ||
| EV/EBITDA | 21.69 |
EPS(TTM)7.82
EY2.57%
EPS(NY)10.57
Fwd EY3.48%
FCF(TTM)8.83
FCFY2.9%
OCF(TTM)12.12
OCFY3.99%
SpS69.35
BVpS31.21
TBVpS1.27
PEG (NY)2.75
PEG (5Y)11.03
Graham Number74.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 32.68% | ||
| ROCE | 25.17% | ||
| ROIC | 17.52% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 48.73% | ||
| OM | 15.95% | ||
| PM (TTM) | 14.71% | ||
| GM | 48.81% | ||
| FCFM | 12.74% |
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)19.81%
ROICexc(5y)14.03%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.77%
ROCE(5y)13.1%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y73.61%
ROICexc growth 5Y13.54%
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-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 97.21% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.91% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.81 |
F-Score9
WACC8.03%
ROIC/WACC2.18
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)40.39%
EPS 3Y61.52%
EPS 5Y3.53%
EPS Q2Q%16.21%
EPS Next Y14.14%
EPS Next 2Y20.42%
EPS Next 3Y18.2%
EPS Next 5Y15.34%
Revenue 1Y (TTM)14.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%13.2%
Revenue Next Year14.52%
Revenue Next 2Y13.34%
Revenue Next 3Y11.9%
Revenue Next 5Y9.61%
EBIT growth 1Y27.26%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year56.81%
EBIT Next 3Y25.24%
EBIT Next 5Y18.4%
FCF growth 1Y42.12%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y45.22%
OCF growth 3Y24.78%
OCF growth 5Y8.52%