SAFRAN SA (SAF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SAF - FR0000073272 - Common Stock
322.6 EUR
+9.9 (+3.17%)
Taking everything into account, SAF scores 6 out of 10 in our fundamental rating. SAF was compared to 47 industry peers in the Aerospace & Defense industry. SAF scores excellent on profitability, but there are some minor concerns on its financial health. 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 Return On Assets of 7.70%. This is amongst the best in the industry. SAF outperforms 89.36% of its industry peers.
SAF has a Return On Equity of 32.68%. This is amongst the best in the industry. SAF outperforms 91.49% of its industry peers.
SAF has a better Return On Invested Capital (17.52%) than 95.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAF is above the industry average of 9.17%.
The last Return On Invested Capital (17.52%) for SAF 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
SAF's Profit Margin of 14.71% is amongst the best of the industry. SAF outperforms 91.49% of its industry peers.
SAF's Operating Margin of 15.95% is amongst the best of the industry. SAF outperforms 89.36% of its industry peers.
SAF's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 48.81%, SAF is doing good in the industry, outperforming 76.60% 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 | 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), SAF is creating value.
The number of shares outstanding for SAF has been increased compared to 1 year ago.
The number of shares outstanding for SAF has been reduced compared to 5 years ago.
SAF has a better debt/assets ratio than last year.
2.2 Solvency
SAF has an Altman-Z score of 2.86. 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 2.86, SAF perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
The Debt to FCF ratio of SAF is 1.37, which is an excellent value as it means it would take SAF, 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, SAF belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that SAF is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, SAF is doing good in the industry, outperforming 68.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.86 |
ROIC/WACC2.06
WACC8.5%
2.3 Liquidity
SAF has a Current Ratio of 0.93. 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's Current ratio of 0.93 is on the low side compared to the rest of the industry. SAF is outperformed by 85.11% of its industry peers.
A Quick Ratio of 0.66 indicates that SAF may have some problems paying its short term obligations.
SAF's Quick ratio of 0.66 is on the low side compared to the rest of the industry. SAF is outperformed by 61.70% of its industry peers.
SAF 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.
The Earnings Per Share has been growing slightly by 3.53% on average over the past years.
The Revenue has grown by 14.19% in the past year. This is quite good.
The Revenue has been growing slightly by 2.00% on average over the past years.
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, SAF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.88% on average per year.
The Revenue is expected to grow by 10.36% on average over the next years. This is quite good.
EPS Next Y15.25%
EPS Next 2Y21.22%
EPS Next 3Y19.03%
EPS Next 5Y15.88%
Revenue Next Year15.46%
Revenue Next 2Y14.07%
Revenue Next 3Y12.27%
Revenue Next 5Y10.36%
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 41.25 indicates a quite expensive valuation of SAF.
63.83% of the companies in the same industry are more expensive than SAF, based on the Price/Earnings ratio.
SAF is valuated expensively when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 30.12, the valuation of SAF can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAF is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SAF to the average of the S&P500 Index (23.57), we can say SAF is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.25 | ||
| Fwd PE | 30.12 |
4.2 Price Multiples
SAF's Enterprise Value to EBITDA ratio is in line with the industry average.
68.09% of the companies in the same industry are more expensive than SAF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.52 | ||
| EV/EBITDA | 22.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAF does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SAF may justify a higher PE ratio.
A more expensive valuation may be justified as SAF's earnings are expected to grow with 19.03% in the coming years.
PEG (NY)2.7
PEG (5Y)11.7
EPS Next 2Y21.22%
EPS Next 3Y19.03%
5. Dividend
5.1 Amount
SAF has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 0.87, SAF has a dividend in line with its industry peers.
With a Dividend Yield of 0.98, SAF pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of SAF has a limited annual growth rate of 3.72%.
Dividend Growth(5Y)3.72%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
28.14% of the earnings are spent on dividend by SAF. This is a low number and sustainable payout ratio.
SAF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.14%
EPS Next 2Y21.22%
EPS Next 3Y19.03%
EPA:SAF (1/7/2026, 7:00:00 PM)
322.6
+9.9 (+3.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners44.49%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap136.66B
Revenue(TTM)29.38B
Net Income(TTM)4.32B
Analysts79.2
Price Target341.51 (5.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend2.19
Dividend Growth(5Y)3.72%
DP28.14%
Div Incr Years4
Div Non Decr Years4
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)0.46%
PT rev (3m)7.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.25 | ||
| Fwd PE | 30.12 | ||
| P/S | 4.65 | ||
| P/FCF | 36.52 | ||
| P/OCF | 26.61 | ||
| P/B | 10.34 | ||
| P/tB | 254.02 | ||
| EV/EBITDA | 22.12 |
EPS(TTM)7.82
EY2.42%
EPS(NY)10.71
Fwd EY3.32%
FCF(TTM)8.83
FCFY2.74%
OCF(TTM)12.12
OCFY3.76%
SpS69.35
BVpS31.21
TBVpS1.27
PEG (NY)2.7
PEG (5Y)11.7
Graham Number74.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 32.68% | ||
| ROCE | 25.17% | ||
| ROIC | 17.52% | ||
| ROICexc | 18% | ||
| ROICexgc | 52.62% | ||
| 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 | 2.86 |
F-Score9
WACC8.5%
ROIC/WACC2.06
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 Y15.25%
EPS Next 2Y21.22%
EPS Next 3Y19.03%
EPS Next 5Y15.88%
Revenue 1Y (TTM)14.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%13.2%
Revenue Next Year15.46%
Revenue Next 2Y14.07%
Revenue Next 3Y12.27%
Revenue Next 5Y10.36%
EBIT growth 1Y27.26%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year59.68%
EBIT Next 3Y26.68%
EBIT Next 5Y18.9%
FCF growth 1Y42.12%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y45.22%
OCF growth 3Y24.78%
OCF growth 5Y8.52%
SAFRAN SA / SAF.PA FAQ
What is the fundamental rating for SAF stock?
ChartMill assigns a fundamental rating of 6 / 10 to SAF.PA.
What is the valuation status for SAF stock?
ChartMill assigns a valuation rating of 3 / 10 to SAFRAN SA (SAF.PA). This can be considered as Overvalued.
Can you provide the profitability details for SAFRAN SA?
SAFRAN SA (SAF.PA) has a profitability rating of 8 / 10.
What is the financial health of SAFRAN SA (SAF.PA) stock?
The financial health rating of SAFRAN SA (SAF.PA) is 6 / 10.
What is the expected EPS growth for SAFRAN SA (SAF.PA) stock?
The Earnings per Share (EPS) of SAFRAN SA (SAF.PA) is expected to grow by 15.25% in the next year.