SAFRAN SA (SEJ1.DE) Stock Fundamental Analysis
FRA:SEJ1 - Deutsche Boerse Ag - FR0000073272 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SEJ1. SEJ1 was compared to 45 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of SEJ1 get a neutral evaluation. Nothing too spectacular is happening here. SEJ1 is quite expensive at the moment. It does show a decent 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.
The reported net income has been mixed in the past 5 years: SEJ1 reported negative net income in multiple years.
SEJ1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -1.21%, SEJ1 is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
SEJ1's Return On Equity of -6.55% is on the low side compared to the rest of the industry. SEJ1 is outperformed by 82.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.38%, SEJ1 belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SEJ1 is above the industry average of 8.61%.
The 3 year average ROIC (12.75%) for SEJ1 is below the current ROIC(16.38%), indicating increased profibility in the last year.
| 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
SEJ1 has a better Operating Margin (14.48%) than 84.44% of its industry peers.
SEJ1's Operating Margin has been stable in the last couple of years.
SEJ1 has a better Gross Margin (47.88%) than 75.56% of its industry peers.
SEJ1's Gross Margin has been stable in the last couple of years.
| 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), SEJ1 is creating value.
Compared to 1 year ago, SEJ1 has more shares outstanding
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 2.33. 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.
The Altman-Z score of SEJ1 (2.33) is comparable to the rest of the industry.
The Debt to FCF ratio of SEJ1 is 1.50, which is an excellent value as it means it would take SEJ1, only 1.50 years of fcf income to pay off all of its debts.
SEJ1's Debt to FCF ratio of 1.50 is amongst the best of the industry. SEJ1 outperforms 84.44% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that SEJ1 is not too dependend on debt financing.
SEJ1 has a Debt to Equity ratio of 0.46. This is in the better half of the industry: SEJ1 outperforms 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.33 |
ROIC/WACC2.07
WACC7.91%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SEJ1 may have some problems paying its short term obligations.
The Current ratio of SEJ1 (0.84) is worse than 88.89% of its industry peers.
A Quick Ratio of 0.59 indicates that SEJ1 may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, SEJ1 is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
| 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.
SEJ1 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.53% yearly.
Looking at the last year, SEJ1 shows a quite strong growth in Revenue. The Revenue has grown by 17.19% in the last year.
SEJ1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.00% yearly.
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
SEJ1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.86% yearly.
The Revenue is expected to grow by 8.71% on average over the next years. This is quite good.
EPS Next Y9.69%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPS Next 5Y12.86%
Revenue Next Year13.4%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y8.71%
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
Based on the Price/Earnings ratio of 37.59, the valuation of SEJ1 can be described as expensive.
SEJ1's Price/Earnings is on the same level as the industry average.
SEJ1's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 34.27 indicates a quite expensive valuation of SEJ1.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SEJ1 is on the same level as its industry peers.
SEJ1's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 34.27 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.54 | ||
| EV/EBITDA | 20.82 |
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.
A more expensive valuation may be justified as SEJ1's earnings are expected to grow with 16.36% in the coming years.
PEG (NY)3.88
PEG (5Y)10.66
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SEJ1 has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
SEJ1's Dividend Yield is a higher than the industry average which is at 1.20.
Compared to an average S&P500 Dividend Yield of 2.42, SEJ1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SEJ1'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%
FRA:SEJ1 (6/30/2025, 7:00:00 PM)
274
+1.7 (+0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap116.07B
Analysts79.13
Price Target270.98 (-1.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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)0.06%
PT rev (3m)0.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 34.27 | ||
| P/S | 4.19 | ||
| P/FCF | 34.54 | ||
| P/OCF | 24.52 | ||
| P/B | 11.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.82 |
EPS(TTM)7.29
EY2.66%
EPS(NY)8
Fwd EY2.92%
FCF(TTM)7.93
FCFY2.9%
OCF(TTM)11.17
OCFY4.08%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.88
PEG (5Y)10.66
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)19.81%
ROICexc(5y)14.03%
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 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-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 | 2.33 |
F-Score6
WACC7.91%
ROIC/WACC2.07
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 5Y12.86%
Revenue 1Y (TTM)17.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%16.45%
Revenue Next Year13.4%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y8.71%
EBIT growth 1Y22.2%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year50.82%
EBIT Next 3Y23.45%
EBIT Next 5Y15.04%
FCF growth 1Y7.59%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y10.84%
OCF growth 3Y24.78%
OCF growth 5Y8.52%