SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
SAF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 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. While showing a medium growth rate, SAF is valued expensive at the moment.
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
SAF has a Return On Assets of -1.21%. This is in the lower half of the industry: SAF underperforms 78.26% of its industry peers.
SAF's Return On Equity of -6.55% is on the low side compared to the rest of the industry. SAF is outperformed by 76.09% of its industry peers.
SAF's Return On Invested Capital of 16.38% is amongst the best of the industry. SAF outperforms 91.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAF is above the industry average of 8.83%.
The 3 year average ROIC (12.75%) for SAF 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
SAF has a better Operating Margin (14.48%) than 89.13% 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 Gross Margin of 47.88%. This is amongst the best in the industry. SAF outperforms 80.43% 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 | 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.
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
An Altman-Z score of 2.26 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 2.26. This is comparable to the rest of the industry: SAF outperforms 45.65% 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.
The Debt to FCF ratio of SAF (1.50) is better than 86.96% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that SAF is not too dependend on debt financing.
SAF has a Debt to Equity ratio of 0.46. This is in the better half of the industry: SAF outperforms 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.99
WACC8.22%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SAF may have some problems paying its short term obligations.
SAF's Current ratio of 0.84 is on the low side compared to the rest of the industry. SAF is outperformed by 86.96% 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: 73.91% 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
SAF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.11%, 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 17.19% 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)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 13.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.20% on average over the next years. This is quite good.
EPS Next Y9.69%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPS Next 5Y13.26%
Revenue Next Year13.4%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y9.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 35.94, the valuation of SAF can be described as expensive.
SAF's Price/Earnings ratio is a bit cheaper when compared to the industry. SAF is cheaper than 60.87% of the companies in the same industry.
SAF is valuated rather expensively when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.77 indicates a quite expensive valuation of SAF.
SAF's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SAF to the average of the S&P500 Index (22.19), we can say SAF is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 32.77 |
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 | 33.02 | ||
| EV/EBITDA | 19.85 |
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 decent profitability rating of SAF may justify a higher PE ratio.
SAF's earnings are expected to grow with 16.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.71
PEG (5Y)10.19
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.12%. 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 1.28.
Compared to an average S&P500 Dividend Yield of 2.40, SAF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
The dividend of SAF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-136.58%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPA:SAF (6/18/2025, 5:36:15 PM)
262
+2.2 (+0.85%)
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 Cap110.99B
Analysts79.13
Price Target270.05 (3.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)1.03%
PT rev (3m)2.77%
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 | 35.94 | ||
| Fwd PE | 32.77 | ||
| P/S | 4 | ||
| P/FCF | 33.02 | ||
| P/OCF | 23.45 | ||
| P/B | 10.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.85 |
EPS(TTM)7.29
EY2.78%
EPS(NY)8
Fwd EY3.05%
FCF(TTM)7.93
FCFY3.03%
OCF(TTM)11.17
OCFY4.26%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.71
PEG (5Y)10.19
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)19.92%
ROICexc(5y)14.09%
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 3Y74.31%
ROICexc growth 5Y13.81%
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%
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 | 2.26 |
F-Score6
WACC8.22%
ROIC/WACC1.99
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 5Y13.26%
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 5Y9.2%
EBIT growth 1Y22.2%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year50.82%
EBIT Next 3Y23.45%
EBIT Next 5Y15.57%
FCF growth 1Y7.59%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y10.84%
OCF growth 3Y24.78%
OCF growth 5Y8.52%