SAFRAN SA (SAF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SAF - FR0000073272 - Common Stock
310.4 EUR
+4.4 (+1.44%)
SAF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Aerospace & Defense industry. While SAF belongs to the best of the industry regarding profitability, 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.
- SAF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SAF has a better Return On Assets (7.70%) than 88.89% of its industry peers.
- SAF has a better Return On Equity (32.68%) than 90.74% of its industry peers.
- With an excellent Return On Invested Capital value of 17.52%, SAF belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
- SAF had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 9.17%.
- The 3 year average ROIC (12.75%) for SAF 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
- SAF has a Profit Margin of 14.71%. This is amongst the best in the industry. SAF outperforms 88.89% of its industry peers.
- SAF has a Operating Margin of 15.95%. This is amongst the best in the industry. SAF outperforms 87.04% of its industry peers.
- SAF's Operating Margin has been stable in the last couple of years.
- The Gross Margin of SAF (48.81%) is better than 75.93% of its industry peers.
- 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
- SAF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for SAF has been increased compared to 1 year ago.
- SAF has less shares outstanding than it did 5 years ago.
- SAF has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.82 indicates that SAF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of SAF (2.82) is comparable to the rest of the industry.
- SAF 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.
- SAF has a Debt to FCF ratio of 1.37. This is amongst the best in the industry. SAF outperforms 92.59% of its industry peers.
- 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 68.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.92
WACC9.12%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that SAF may have some problems paying its short term obligations.
- SAF has a Current ratio of 0.93. This is amonst the worse of the industry: SAF underperforms 87.04% of its industry peers.
- SAF has a Quick 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.
- The Quick ratio of SAF (0.66) is worse than 66.67% of its industry peers.
- The current and quick ratio evaluation for SAF 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
- SAF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.39%, which is quite impressive.
- Measured over the past 5 years, SAF shows a small growth in Earnings Per Share. The EPS has been growing by 3.53% on average per year.
- The Revenue has grown by 14.19% in the past year. This is quite good.
- SAF 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.
- SAF 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.
- 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
- SAF is valuated quite expensively with a Price/Earnings ratio of 39.69.
- Based on the Price/Earnings ratio, SAF is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SAF is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 29.13, which means the current valuation is very expensive for SAF.
- The rest of the industry has a similar Price/Forward Earnings ratio as SAF.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SAF is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.69 | ||
| Fwd PE | 29.13 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAF is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, SAF is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.14 | ||
| EV/EBITDA | 21.7 |
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.
- SAF's earnings are expected to grow with 19.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)11.25
EPS Next 2Y20.9%
EPS Next 3Y19.08%
5. Dividend
5.1 Amount
- SAF has a yearly dividend return of 0.91%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.75, SAF pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.91, SAF pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
- SAF pays out 28.14% of its income as dividend. This is a sustainable payout ratio.
- The dividend of SAF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.14%
EPS Next 2Y20.9%
EPS Next 3Y19.08%
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 15.18% in the next year.