SAFRAN SA (SAF.PA) Stock Fundamental Analysis
Europe - EPA:SAF - FR0000073272 - Common Stock
291.6 EUR
-2.8 (-0.95%)
Overall SAF gets a fundamental rating of 5 out of 10. We evaluated SAF against 48 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAF was profitable.
In the past year SAF had a positive cash flow from operations.
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
With a Return On Assets value of -1.21%, SAF is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
SAF has a worse Return On Equity (-6.55%) than 87.50% of its industry peers.
SAF's Return On Invested Capital of 16.38% is amongst the best of the industry. SAF outperforms 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAF is above the industry average of 9.20%.
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
SAF has a better Operating Margin (14.48%) than 85.42% of its industry peers.
In the last couple of years the Operating Margin of SAF has remained more or less at the same level.
SAF has a better Gross Margin (47.88%) than 75.00% of its industry peers.
SAF'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), SAF is creating value.
The number of shares outstanding for SAF has been increased compared to 1 year ago.
Compared to 5 years ago, SAF has less shares outstanding
The debt/assets ratio for SAF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.46 indicates that SAF is not a great score, but indicates only limited risk for bankruptcy at the moment.
SAF has a Altman-Z score of 2.46. This is in the lower half of the industry: SAF underperforms 60.42% 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.
Looking at the Debt to FCF ratio, with a value of 1.50, SAF belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that SAF is not too dependend on debt financing.
SAF has a better Debt to Equity ratio (0.46) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.46 |
ROIC/WACC2.08
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SAF may have some problems paying its short term obligations.
The Current ratio of SAF (0.84) is worse than 87.50% of its industry peers.
SAF has a Quick 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.
Looking at the Quick ratio, with a value of 0.59, SAF is doing worse than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.59 |
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.
Looking at the last year, SAF shows a quite strong growth in Revenue. The Revenue has grown by 14.19% in the last year.
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
Based on estimates for the next years, SAF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.44% on average per year.
SAF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.70% yearly.
EPS Next Y14.79%
EPS Next 2Y19.98%
EPS Next 3Y17.83%
EPS Next 5Y15.44%
Revenue Next Year14.48%
Revenue Next 2Y13.34%
Revenue Next 3Y11.85%
Revenue Next 5Y9.7%
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 37.29, the valuation of SAF can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SAF is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SAF to the average of the S&P500 Index (27.41), we can say SAF is valued slightly more expensively.
With a Price/Forward Earnings ratio of 27.79, SAF can be considered very expensive at the moment.
SAF's Price/Forward Earnings is on the same level as the industry average.
SAF's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.29 | ||
| Fwd PE | 27.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAF.
Based on the Price/Free Cash Flow ratio, SAF is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.75 | ||
| EV/EBITDA | 22.55 |
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 17.83% in the coming years.
PEG (NY)2.52
PEG (5Y)10.57
EPS Next 2Y19.98%
EPS Next 3Y17.83%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 1.18, SAF has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SAF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 2Y19.98%
EPS Next 3Y17.83%
EPA:SAF (9/23/2025, 7:00:00 PM)
291.6
-2.8 (-0.95%)
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 Cap123.53B
Analysts79.17
Price Target316.49 (8.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)5.38%
PT rev (3m)17.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.29 | ||
| Fwd PE | 27.79 | ||
| P/S | 4.46 | ||
| P/FCF | 36.75 | ||
| P/OCF | 26.1 | ||
| P/B | 12.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.55 |
EPS(TTM)7.82
EY2.68%
EPS(NY)10.49
Fwd EY3.6%
FCF(TTM)7.93
FCFY2.72%
OCF(TTM)11.17
OCFY3.83%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)2.52
PEG (5Y)10.57
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 | 2.46 |
F-Score6
WACC7.86%
ROIC/WACC2.08
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 Y14.79%
EPS Next 2Y19.98%
EPS Next 3Y17.83%
EPS Next 5Y15.44%
Revenue 1Y (TTM)14.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%13.2%
Revenue Next Year14.48%
Revenue Next 2Y13.34%
Revenue Next 3Y11.85%
Revenue Next 5Y9.7%
EBIT growth 1Y22.2%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year50.82%
EBIT Next 3Y23.45%
EBIT Next 5Y18.51%
FCF growth 1Y7.59%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y10.84%
OCF growth 3Y24.78%
OCF growth 5Y8.52%