SAFRAN SA (SAF.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:SAF • FR0000073272
302.2 EUR
+1.2 (+0.4%)
Last: Feb 2, 2026, 07:00 PM
Taking everything into account, SAF scores 6 out of 10 in our fundamental rating. SAF was compared to 53 industry peers in the Aerospace & Defense industry. SAF scores excellent on profitability, but there are some minor concerns on its financial health. SAF is not valued too expensively and it also shows 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.
- In the past 5 years SAF always reported a positive cash flow from operatings.
1.2 Ratios
- SAF has a Return On Assets of 7.70%. This is amongst the best in the industry. SAF outperforms 84.91% of its industry peers.
- Looking at the Return On Equity, with a value of 32.68%, SAF belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 17.52%, SAF belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SAF is above the industry average of 9.60%.
- 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 86.79% of its industry peers.
- SAF's Operating Margin of 15.95% is amongst the best of the industry. SAF outperforms 84.91% 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 48.81%. This is in the better half of the industry: SAF outperforms 79.25% of its industry peers.
- SAF's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SAF is creating value.
- Compared to 1 year ago, SAF has more shares outstanding
- Compared to 5 years ago, SAF has less shares outstanding
- SAF has a better debt/assets ratio than last year.
2.2 Solvency
- SAF has an Altman-Z score of 2.79. 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 (2.79) which is comparable to the rest of the industry.
- The Debt to FCF ratio of SAF is 1.37, which is an excellent value as it means it would take SAF, only 1.37 years of fcf income to pay off all of its debts.
- SAF has a better Debt to FCF ratio (1.37) than 94.34% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that SAF is not too dependend on debt financing.
- The Debt to Equity ratio of SAF (0.29) is better than 67.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.87
WACC9.35%
2.3 Liquidity
- SAF has a Current 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.
- SAF has a worse Current ratio (0.93) than 86.79% 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.
- Looking at the Quick ratio, with a value of 0.66, SAF is doing worse than 66.04% of the companies in the same industry.
- SAF does not score too well on the current and quick ratio evaluation. However, as it has 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
- The Earnings Per Share has grown by an impressive 40.39% 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.
- SAF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.19%.
- 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)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.
- Based on estimates for the next years, SAF will show a quite strong growth in Revenue. The Revenue will grow by 10.23% on average per year.
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
- The Price/Earnings ratio is 38.64, which means the current valuation is very expensive for SAF.
- SAF's Price/Earnings ratio is a bit cheaper when compared to the industry. SAF is cheaper than 67.92% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SAF to the average of the S&P500 Index (28.41), we can say SAF is valued slightly more expensively.
- A Price/Forward Earnings ratio of 28.36 indicates a quite expensive valuation of SAF.
- Based on the Price/Forward Earnings ratio, SAF is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. SAF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.64 | ||
| Fwd PE | 28.36 |
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 69.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.21 | ||
| EV/EBITDA | 21.36 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SAF has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SAF's earnings are expected to grow with 19.08% in the coming years.
PEG (NY)2.54
PEG (5Y)10.96
EPS Next 2Y20.9%
EPS Next 3Y19.08%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.97%, SAF is not a good candidate for dividend investing.
- SAF's Dividend Yield is a higher than the industry average which is at 0.71.
- Compared to an average S&P500 Dividend Yield of 1.83, SAF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
- 28.14% of the earnings are spent on dividend by SAF. This is a low number and sustainable payout ratio.
- SAF's earnings are growing more than its dividend. This makes the dividend growth 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 4 / 10 to SAFRAN SA (SAF.PA). This can be considered as Fairly Valued.
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.