SAFRAN SA (SEJ1.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:SEJ1 • FR0000073272
305.9 EUR
+8 (+2.69%)
Last: Jan 30, 2026, 07:00 PM
Overall SEJ1 gets a fundamental rating of 6 out of 10. We evaluated SEJ1 against 53 industry peers in the Aerospace & Defense industry. SEJ1 scores excellent on profitability, but there are some minor concerns on its financial health. SEJ1 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- SEJ1 had positive earnings in the past year.
- SEJ1 had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: SEJ1 reported negative net income in multiple years.
- In the past 5 years SEJ1 always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SEJ1 (7.70%) is better than 84.91% of its industry peers.
- SEJ1's Return On Equity of 32.68% is amongst the best of the industry. SEJ1 outperforms 84.91% of its industry peers.
- With an excellent Return On Invested Capital value of 17.52%, SEJ1 belongs to the best of the industry, outperforming 92.45% 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 9.60%.
- 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 better Profit Margin (14.71%) than 86.79% of its industry peers.
- SEJ1 has a better Operating Margin (15.95%) than 84.91% of its industry peers.
- In the last couple of years the Operating Margin of SEJ1 has remained more or less at the same level.
- SEJ1's Gross Margin of 48.81% is fine compared to the rest of the industry. SEJ1 outperforms 77.36% of its industry peers.
- SEJ1's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SEJ1 is creating value.
- SEJ1 has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for SEJ1 has been reduced compared to 5 years ago.
- The debt/assets ratio for SEJ1 has been reduced compared to a year ago.
2.2 Solvency
- SEJ1 has an Altman-Z score of 2.82. This is not the best score and indicates that SEJ1 is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.82, SEJ1 is in line with its industry, outperforming 54.72% of the companies in the same industry.
- The Debt to FCF ratio of SEJ1 is 1.37, which is an excellent value as it means it would take SEJ1, only 1.37 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.37, SEJ1 belongs to the best of the industry, outperforming 92.45% 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.
- With a decent Debt to Equity ratio value of 0.29, SEJ1 is doing good in the industry, outperforming 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.87
WACC9.35%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that SEJ1 may have some problems paying its short term obligations.
- SEJ1 has a Current ratio of 0.93. This is amonst the worse of the industry: SEJ1 underperforms 88.68% of its industry peers.
- A Quick Ratio of 0.66 indicates that SEJ1 may have some problems paying its short term obligations.
- The Quick ratio of SEJ1 (0.66) is worse than 67.92% of its industry peers.
- SEJ1 does not score too well on the current and quick ratio evaluation. However, as it has 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
- The Earnings Per Share has grown by an impressive 40.39% over the past year.
- SEJ1 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.53% yearly.
- The Revenue has grown by 14.19% in the past year. This is quite good.
- SEJ1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.00% yearly.
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
- Based on estimates for the next years, SEJ1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.19% on average per year.
- SEJ1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.23% yearly.
EPS Next Y15.18%
EPS Next 2Y20.9%
EPS Next 3Y19.08%
EPS Next 5Y16.19%
Revenue Next Year15.46%
Revenue Next 2Y14.07%
Revenue Next 3Y12.27%
Revenue Next 5Y10.23%
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
- A Price/Earnings ratio of 39.12 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 64.15% 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 28.32.
- With a Price/Forward Earnings ratio of 28.71, 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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.12 | ||
| Fwd PE | 28.71 |
4.2 Price Multiples
- SEJ1's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, SEJ1 is valued a bit cheaper than the industry average as 69.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.63 | ||
| EV/EBITDA | 21.7 |
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.
- The excellent profitability rating of SEJ1 may justify a higher PE ratio.
- SEJ1's earnings are expected to grow with 19.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.58
PEG (5Y)11.09
EPS Next 2Y20.9%
EPS Next 3Y19.08%
5. Dividend
5.1 Amount
- SEJ1 has a yearly dividend return of 0.97%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.71, SEJ1 pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, SEJ1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
- 28.14% of the earnings are spent on dividend by SEJ1. This is a low number and sustainable payout ratio.
- SEJ1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.14%
EPS Next 2Y20.9%
EPS Next 3Y19.08%
SAFRAN SA / SEJ1.DE FAQ
Can you provide the ChartMill fundamental rating for SAFRAN SA?
ChartMill assigns a fundamental rating of 6 / 10 to SEJ1.DE.
Can you provide the valuation status for SAFRAN SA?
ChartMill assigns a valuation rating of 4 / 10 to SAFRAN SA (SEJ1.DE). This can be considered as Fairly Valued.
What is the profitability of SEJ1 stock?
SAFRAN SA (SEJ1.DE) has a profitability rating of 8 / 10.
What is the valuation of SAFRAN SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SAFRAN SA (SEJ1.DE) is 39.12 and the Price/Book (PB) ratio is 9.8.
Is the dividend of SAFRAN SA sustainable?
The dividend rating of SAFRAN SA (SEJ1.DE) is 4 / 10 and the dividend payout ratio is 28.14%.