SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SAF. SAF was compared to 43 industry peers in the Aerospace & Defense industry. SAF has only an average score on both its financial health and profitability. SAF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAF was profitable.
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
With a Return On Assets value of -1.21%, SAF is not doing good in the industry: 76.74% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -6.55%, SAF is doing worse than 74.42% of the companies in the same industry.
SAF has a better Return On Invested Capital (16.38%) than 90.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAF is above the industry average of 9.16%.
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 83.72% 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 in the better half of the industry: SAF outperforms 74.42% 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.
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
SAF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 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 2.23. This is comparable to the rest of the industry: SAF outperforms 48.84% of its industry peers.
The Debt to FCF ratio of SAF is 1.50, which is an excellent value as it means it would take SAF, only 1.50 years of fcf income to pay off all of its debts.
SAF has a better Debt to FCF ratio (1.50) than 83.72% 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 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.23 |
ROIC/WACC2.05
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SAF may have some problems paying its short term obligations.
With a Current ratio value of 0.84, SAF is not doing good in the industry: 86.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.59 indicates that SAF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, SAF is doing worse than 69.77% of the companies in the same industry.
| 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.
SAF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.53% yearly.
SAF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.19%.
Measured over the past years, SAF shows a small growth in Revenue. The Revenue has been growing by 2.00% on average per year.
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
SAF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.
SAF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
EPS Next Y9.69%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPS Next 5Y11.59%
Revenue Next Year13.4%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y9.08%
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 34.95, the valuation of SAF can be described as expensive.
Based on the Price/Earnings ratio, SAF is valued a bit cheaper than 60.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of SAF to the average of the S&P500 Index (25.82), we can say SAF is valued slightly more expensively.
With a Price/Forward Earnings ratio of 31.87, SAF can be considered very expensive at the moment.
SAF's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SAF to the average of the S&P500 Index (21.76), we can say SAF is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 31.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAF.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAF indicates a somewhat cheap valuation: SAF is cheaper than 62.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.12 | ||
| EV/EBITDA | 19.46 |
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.
A more expensive valuation may be justified as SAF's earnings are expected to grow with 16.36% in the coming years.
PEG (NY)3.61
PEG (5Y)9.91
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.12%.
SAF's Dividend Yield is a higher than the industry average which is at 1.30.
With a Dividend Yield of 1.12, SAF pays less dividend than the S&P500 average, which is at 2.39.
| 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 Years3
Div Non Decr Years3
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 (5/23/2025, 7:00:00 PM)
254.8
-5.8 (-2.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.36%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap107.94B
Analysts79.17
Price Target267.3 (4.91%)
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 Years3
Div Non Decr Years3
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)-1.91%
PT rev (3m)3.24%
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)-0.39%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 31.87 | ||
| P/S | 3.89 | ||
| P/FCF | 32.12 | ||
| P/OCF | 22.81 | ||
| P/B | 10.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.46 |
EPS(TTM)7.29
EY2.86%
EPS(NY)8
Fwd EY3.14%
FCF(TTM)7.93
FCFY3.11%
OCF(TTM)11.17
OCFY4.38%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.61
PEG (5Y)9.91
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 | 2.23 |
F-Score6
WACC7.99%
ROIC/WACC2.05
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 5Y11.59%
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 5Y9.08%
EBIT growth 1Y22.2%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year50.82%
EBIT Next 3Y23.45%
EBIT Next 5Y15.29%
FCF growth 1Y7.59%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y10.84%
OCF growth 3Y24.78%
OCF growth 5Y8.52%