SAFRAN SA (SEJ1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SEJ1 - FR0000073272 - Common Stock
312.1 EUR
+4.7 (+1.53%)
Taking everything into account, SEJ1 scores 6 out of 10 in our fundamental rating. SEJ1 was compared to 53 industry peers in the Aerospace & Defense industry. SEJ1 has an excellent profitability rating, 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
- In the past year SEJ1 was profitable.
- SEJ1 had a positive operating cash flow in the past year.
- 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 has a Return On Assets of 7.70%. This is amongst the best in the industry. SEJ1 outperforms 87.27% of its industry peers.
- SEJ1 has a Return On Equity of 32.68%. This is amongst the best in the industry. SEJ1 outperforms 89.09% of its industry peers.
- The Return On Invested Capital of SEJ1 (17.52%) is better than 94.55% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SEJ1 is above the industry average of 9.24%.
- The 3 year average ROIC (12.75%) for SEJ1 is below the current ROIC(17.52%), indicating increased profibility in the last year.
| 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 87.27% of its industry peers.
- Looking at the Operating Margin, with a value of 15.95%, SEJ1 belongs to the top of the industry, outperforming 85.45% 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 Gross Margin of 48.81%. This is in the better half of the industry: SEJ1 outperforms 74.55% 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.
- Compared to 1 year ago, SEJ1 has more shares outstanding
- Compared to 5 years ago, SEJ1 has less shares outstanding
- Compared to 1 year ago, SEJ1 has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.85 indicates that SEJ1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SEJ1 has a Altman-Z score (2.85) which is comparable to the rest of the 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.
- SEJ1 has a Debt to FCF ratio of 1.37. This is amongst the best in the industry. SEJ1 outperforms 90.91% of its industry peers.
- 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 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.92
WACC9.12%
2.3 Liquidity
- SEJ1 has a Current 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 Current ratio of SEJ1 (0.93) is worse than 89.09% of its industry peers.
- A Quick Ratio of 0.66 indicates that SEJ1 may have some problems paying its short term obligations.
- SEJ1's Quick ratio of 0.66 is on the low side compared to the rest of the industry. SEJ1 is outperformed by 69.09% of its industry peers.
- 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
- The Earnings Per Share has grown by an impressive 40.39% over the past year.
- Measured over the past 5 years, SEJ1 shows a small growth in Earnings Per Share. The EPS has been growing by 3.53% on average per year.
- SEJ1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.19%.
- 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
- The Earnings Per Share is expected to grow by 16.19% on average over the next years. This is quite good.
- The Revenue is expected to grow by 10.23% on average over the next years. This is quite good.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 39.91, the valuation of SEJ1 can be described as expensive.
- Based on the Price/Earnings ratio, SEJ1 is valued a bit cheaper than 65.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SEJ1 is valued a bit more expensive.
- SEJ1 is valuated quite expensively with a Price/Forward Earnings ratio of 29.29.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SEJ1 is on the same level as its industry peers.
- SEJ1 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.91 | ||
| Fwd PE | 29.29 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEJ1 is on the same level as its industry peers.
- SEJ1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SEJ1 is cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.33 | ||
| EV/EBITDA | 22.13 |
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 19.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)11.32
EPS Next 2Y20.9%
EPS Next 3Y19.08%
5. Dividend
5.1 Amount
- SEJ1 has a yearly dividend return of 0.95%, which is pretty low.
- SEJ1's Dividend Yield is a higher than the industry average which is at 0.74.
- With a Dividend Yield of 0.95, SEJ1 pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 39.91 and the Price/Book (PB) ratio is 10.
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%.