SAFRAN SA (SAF.PA)

FR0000073272 - Common Stock

210.05  +0.7 (+0.33%)

Fundamental Rating

6

SAF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Aerospace & Defense industry. While SAF has a great profitability rating, there are some minor concerns on its financial health. SAF is valued quite expensively, but it does show have an excellent growth rating. This makes SAF very considerable for growth investing!



9

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.
Of the past 5 years SAF 4 years were profitable.
In the past 5 years SAF always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 6.55%, SAF belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
The Return On Equity of SAF (29.42%) is better than 94.59% of its industry peers.
SAF has a better Return On Invested Capital (11.43%) than 91.89% of its industry peers.
SAF had an Average Return On Invested Capital over the past 3 years of 8.54%. This is in line with the industry average of 8.19%.
The last Return On Invested Capital (11.43%) for SAF is above the 3 year average (8.54%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.55%
ROE 29.42%
ROIC 11.43%
ROA(3y)0.56%
ROA(5y)1.66%
ROE(3y)2.15%
ROE(5y)5.82%
ROIC(3y)8.54%
ROIC(5y)8.47%

1.3 Margins

SAF's Profit Margin of 14.38% is amongst the best of the industry. SAF outperforms 94.59% of its industry peers.
In the last couple of years the Profit Margin of SAF has grown nicely.
With an excellent Operating Margin value of 13.90%, SAF belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
SAF's Operating Margin has improved in the last couple of years.
The Gross Margin of SAF (46.85%) is better than 67.57% of its industry peers.
In the last couple of years the Gross Margin of SAF has grown nicely.
Industry RankSector Rank
OM 13.9%
PM (TTM) 14.38%
GM 46.85%
OM growth 3Y17.41%
OM growth 5Y7.35%
PM growth 3Y90.19%
PM growth 5Y19%
GM growth 3Y0.57%
GM growth 5Y1.7%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAF is still creating some value.
The number of shares outstanding for SAF has been reduced compared to 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 2.21 indicates that SAF is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SAF (2.21) is comparable to the rest of the industry.
The Debt to FCF ratio of SAF is 2.54, which is a good value as it means it would take SAF, 2.54 years of fcf income to pay off all of its debts.
SAF has a Debt to FCF ratio of 2.54. This is amongst the best in the industry. SAF outperforms 86.49% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SAF is somewhat dependend on debt financing.
The Debt to Equity ratio of SAF (0.52) is better than 64.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 2.54
Altman-Z 2.21
ROIC/WACC1.63
WACC7.03%

2.3 Liquidity

A Current Ratio of 0.93 indicates that SAF may have some problems paying its short term obligations.
SAF has a Current ratio of 0.93. This is amonst the worse of the industry: SAF underperforms 91.89% of its industry peers.
A Quick Ratio of 0.67 indicates that SAF may have some problems paying its short term obligations.
The Quick ratio of SAF (0.67) is worse than 72.97% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.67

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 64.96% over the past year.
The Earnings Per Share has been growing slightly by 0.83% on average over the past years.
The Revenue has grown by 28.98% in the past year. This is a very strong growth!
SAF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.38% yearly.
EPS 1Y (TTM)64.96%
EPS 3Y34.77%
EPS 5Y0.83%
EPS growth Q2Q96.72%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y12.45%
Revenue growth 5Y2.38%
Revenue growth Q2Q28.29%

3.2 Future

The Earnings Per Share is expected to grow by 20.04% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.21% on average over the next years. This is quite good.
EPS Next Y48.33%
EPS Next 2Y33.98%
EPS Next 3Y27.93%
EPS Next 5Y20.04%
Revenue Next Year16.78%
Revenue Next 2Y15.2%
Revenue Next 3Y13.76%
Revenue Next 5Y8.21%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

SAF is valuated quite expensively with a Price/Earnings ratio of 54.42.
Based on the Price/Earnings ratio, SAF is valued a bit more expensive than the industry average as 67.57% of the companies are valued more cheaply.
SAF is valuated expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
SAF is valuated quite expensively with a Price/Forward Earnings ratio of 30.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAF indicates a slightly more expensive valuation: SAF is more expensive than 70.27% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SAF to the average of the S&P500 Index (22.79), we can say SAF is valued slightly more expensively.
Industry RankSector Rank
PE 54.42
Fwd PE 30.13

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.
SAF's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.32
EV/EBITDA 18.61

4.3 Compensation for Growth

SAF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 27.93% in the coming years.
PEG (NY)1.13
PEG (5Y)65.66
EPS Next 2Y33.98%
EPS Next 3Y27.93%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.06%, SAF has a reasonable but not impressive dividend return.
SAF's Dividend Yield is comparable with the industry average which is at 1.60.
With a Dividend Yield of 1.06, SAF pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.06%

5.2 History

The dividend of SAF decreases each year by -3.97%.
Dividend Growth(5Y)-3.97%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

SAF pays out 17.84% of its income as dividend. This is a sustainable payout ratio.
DP17.84%
EPS Next 2Y33.98%
EPS Next 3Y27.93%

SAFRAN SA

EPA:SAF (3/28/2024, 7:00:00 PM)

210.05

+0.7 (+0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap87.72B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.06%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 54.42
Fwd PE 30.13
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.13
PEG (5Y)65.66
Profitability
Industry RankSector Rank
ROA 6.55%
ROE 29.42%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.9%
PM (TTM) 14.38%
GM 46.85%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.93
Quick Ratio 0.67
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)64.96%
EPS 3Y34.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y48.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.98%
Revenue growth 3Y12.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y