SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
Taking everything into account, SAF scores 5 out of 10 in our fundamental rating. SAF was compared to 47 industry peers in the Aerospace & Defense industry. SAF has only an average score on both its financial health and profitability. While showing a medium growth rate, SAF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SAF had positive earnings in the past year.
In the past year SAF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SAF reported negative net income in multiple years.
In the past 5 years SAF always reported a positive cash flow from operatings.
1.2 Ratios
SAF has a worse Return On Assets (-1.21%) than 78.72% of its industry peers.
The Return On Equity of SAF (-6.55%) is worse than 76.60% of its industry peers.
SAF has a Return On Invested Capital of 16.38%. This is amongst the best in the industry. SAF outperforms 93.62% of its industry peers.
SAF had an Average Return On Invested Capital over the past 3 years of 12.75%. This is above the industry average of 8.60%.
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 Operating Margin of 14.48%. This is amongst the best in the industry. SAF outperforms 89.36% of its industry peers.
SAF's Operating Margin has been stable in the last couple of years.
SAF has a better Gross Margin (47.88%) than 78.72% 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
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 2.35. 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 of 2.35. This is comparable to the rest of the industry: SAF outperforms 42.55% 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.
SAF's Debt to FCF ratio of 1.50 is amongst the best of the industry. SAF outperforms 87.23% of its industry peers.
SAF has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
SAF has a Debt to Equity ratio of 0.46. This is in the better half of the industry: SAF outperforms 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.35 |
ROIC/WACC2.11
WACC7.76%
2.3 Liquidity
SAF has a Current 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.
SAF has a Current ratio of 0.84. This is amonst the worse of the industry: SAF underperforms 87.23% 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: 72.34% 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.
SAF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.53% yearly.
The Revenue has grown by 17.19% in the past year. This is quite good.
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
SAF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.86% yearly.
Based on estimates for the next years, SAF will show a quite strong growth in Revenue. The Revenue will grow by 8.71% on average per year.
EPS Next Y9.69%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
EPS Next 5Y12.86%
Revenue Next Year13.4%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y8.71%
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
With a Price/Earnings ratio of 38.22, SAF can be considered very expensive at the moment.
SAF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SAF to the average of the S&P500 Index (27.53), we can say SAF is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 34.84, the valuation of SAF can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SAF.
When comparing the Price/Forward Earnings ratio of SAF to the average of the S&P500 Index (36.71), we can say SAF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.22 | ||
| Fwd PE | 34.84 |
4.2 Price Multiples
SAF's Enterprise Value to EBITDA ratio is in line with the industry average.
63.83% of the companies in the same industry are more expensive than SAF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.12 | ||
| EV/EBITDA | 21.07 |
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 16.36% in the coming years.
PEG (NY)3.95
PEG (5Y)10.84
EPS Next 2Y17.96%
EPS Next 3Y16.36%
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 pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, SAF pays less dividend than the S&P500 average, which is at 2.34.
| 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.
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 (7/23/2025, 5:36:15 PM)
278.6
+3.1 (+1.13%)
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 Cap118.02B
Analysts77.5
Price Target277.65 (-0.34%)
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)2.81%
PT rev (3m)1.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 38.22 | ||
| Fwd PE | 34.84 | ||
| P/S | 4.26 | ||
| P/FCF | 35.12 | ||
| P/OCF | 24.94 | ||
| P/B | 11.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.07 |
EPS(TTM)7.29
EY2.62%
EPS(NY)8
Fwd EY2.87%
FCF(TTM)7.93
FCFY2.85%
OCF(TTM)11.17
OCFY4.01%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.95
PEG (5Y)10.84
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 | 2.35 |
F-Score6
WACC7.76%
ROIC/WACC2.11
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 5Y12.86%
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 5Y8.71%
EBIT growth 1Y22.2%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year50.82%
EBIT Next 3Y23.45%
EBIT Next 5Y15.04%
FCF growth 1Y7.59%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y10.84%
OCF growth 3Y24.78%
OCF growth 5Y8.52%