SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
Taking everything into account, SAF scores 5 out of 10 in our fundamental rating. SAF was compared to 45 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of SAF get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year SAF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SAF reported negative net income in multiple years.
Each year in the past 5 years SAF had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.21%, SAF is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
With a Return On Equity value of -6.55%, SAF is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
The Return On Invested Capital of SAF (16.38%) is better than 91.11% of its industry peers.
SAF had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 8.61%.
The last Return On Invested Capital (16.38%) for SAF is above the 3 year average (12.75%), which is a sign of increasing profitability.
| 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
Looking at the Operating Margin, with a value of 14.48%, SAF belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
In the last couple of years the Operating Margin of SAF has remained more or less at the same level.
With a decent Gross Margin value of 47.88%, SAF is doing good in the industry, outperforming 75.56% 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 | 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
SAF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SAF has more shares outstanding than it did 1 year ago.
SAF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAF has an improved debt to assets ratio.
2.2 Solvency
SAF has an Altman-Z score of 2.35. 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.
SAF has a Altman-Z score of 2.35. This is comparable to the rest of the industry: SAF outperforms 48.89% of its industry peers.
SAF has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
SAF's Debt to FCF ratio of 1.50 is amongst the best of the industry. SAF outperforms 84.44% of its industry peers.
SAF has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SAF (0.46) is better than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.35 |
ROIC/WACC2.07
WACC7.91%
2.3 Liquidity
SAF has a Current Ratio of 0.84. 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 Current ratio of SAF (0.84) is worse than 88.89% of its industry peers.
A Quick Ratio of 0.59 indicates that SAF may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, SAF 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.
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 17.19% 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)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
The Earnings Per Share is expected to grow by 12.86% 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 8.71% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
SAF is valuated quite expensively with a Price/Earnings ratio of 37.53.
SAF's Price/Earnings ratio is in line with the industry average.
SAF is valuated rather expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.22, 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.
SAF'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 | 37.53 | ||
| Fwd PE | 34.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAF.
SAF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.49 | ||
| EV/EBITDA | 21.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SAF's earnings are expected to grow with 16.36% in the coming years.
PEG (NY)3.88
PEG (5Y)10.64
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
SAF'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, SAF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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
The earnings of SAF are negative and hence is the payout ratio. SAF will probably not be able to sustain this dividend level.
SAF'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%
EPA:SAF (7/1/2025, 9:58:52 AM)
273.6
-2.3 (-0.83%)
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 Cap115.91B
Analysts79.13
Price Target272.21 (-0.51%)
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 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)1.84%
PT rev (3m)3.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.67%
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 | 37.53 | ||
| Fwd PE | 34.22 | ||
| P/S | 4.18 | ||
| P/FCF | 34.49 | ||
| P/OCF | 24.49 | ||
| P/B | 11.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.11 |
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)10.64
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 | 2.35 |
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%