SAFRAN SA (SAF.PA) Stock Fundamental Analysis
Europe - EPA:SAF - FR0000073272 - Common Stock
294.7 EUR
-3.4 (-1.14%)
We assign a fundamental rating of 6 out of 10 to SAF. SAF was compared to 49 industry peers in the Aerospace & Defense industry. While SAF belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
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
With an excellent Return On Assets value of 7.70%, SAF belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Equity value of 32.68%, SAF belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
SAF's Return On Invested Capital of 17.52% is amongst the best of the industry. SAF outperforms 93.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAF is above the industry average of 9.33%.
The last Return On Invested Capital (17.52%) for SAF is above the 3 year average (12.75%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 14.71%, SAF belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
SAF has a Operating Margin of 15.95%. This is amongst the best in the industry. SAF outperforms 85.71% of its industry peers.
SAF's Operating Margin has been stable in the last couple of years.
SAF has a Gross Margin of 48.81%. This is in the better half of the industry: SAF outperforms 75.51% 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 | 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
SAF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
SAF has an Altman-Z score of 2.77. 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 (2.77) 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 Debt to FCF ratio of 1.37. This is amongst the best in the industry. SAF outperforms 89.80% 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 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 2.77 |
ROIC/WACC2.23
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.93 indicates that SAF may have some problems paying its short term obligations.
SAF has a worse Current ratio (0.93) than 87.76% 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.
SAF's Quick ratio of 0.66 is on the low side compared to the rest of the industry. SAF is outperformed by 63.27% of its industry peers.
The current and quick ratio evaluation for SAF is rather negative, while it does have 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
SAF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.39%, 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.
The Revenue has grown by 14.19% in the past year. This is quite good.
The Revenue has been growing slightly by 2.00% on average over the past years.
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 15.34% 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 9.61% on average per year.
EPS Next Y14.14%
EPS Next 2Y20.42%
EPS Next 3Y18.2%
EPS Next 5Y15.34%
Revenue Next Year14.52%
Revenue Next 2Y13.34%
Revenue Next 3Y11.9%
Revenue Next 5Y9.61%
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
Based on the Price/Earnings ratio of 37.69, the valuation of SAF can be described as expensive.
SAF's Price/Earnings is on the same level as the industry average.
SAF is valuated rather expensively when we compare the Price/Earnings ratio to 27.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.88 indicates a quite expensive valuation of SAF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAF is on the same level as its industry peers.
SAF is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.69 | ||
| Fwd PE | 27.88 |
4.2 Price Multiples
SAF's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SAF is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.36 | ||
| EV/EBITDA | 21.28 |
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.
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 18.20% in the coming years.
PEG (NY)2.66
PEG (5Y)10.68
EPS Next 2Y20.42%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
SAF has a yearly dividend return of 0.96%, which is pretty low.
SAF's Dividend Yield is a higher than the industry average which is at 1.08.
With a Dividend Yield of 0.96, SAF pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
SAF pays out 28.14% of its income as dividend. This is a sustainable payout ratio.
SAF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.14%
EPS Next 2Y20.42%
EPS Next 3Y18.2%
EPA:SAF (10/14/2025, 2:16:36 PM)
294.7
-3.4 (-1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners43.54%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap124.84B
Analysts79.2
Price Target318.09 (7.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend2.19
Dividend Growth(5Y)3.72%
DP28.14%
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)1.6%
PT rev (3m)16.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.56%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.69 | ||
| Fwd PE | 27.88 | ||
| P/S | 4.25 | ||
| P/FCF | 33.36 | ||
| P/OCF | 24.31 | ||
| P/B | 9.44 | ||
| P/tB | 232.05 | ||
| EV/EBITDA | 21.28 |
EPS(TTM)7.82
EY2.65%
EPS(NY)10.57
Fwd EY3.59%
FCF(TTM)8.83
FCFY3%
OCF(TTM)12.12
OCFY4.11%
SpS69.35
BVpS31.21
TBVpS1.27
PEG (NY)2.66
PEG (5Y)10.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.7% | ||
| ROE | 32.68% | ||
| ROCE | 25.17% | ||
| ROIC | 17.52% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 48.73% | ||
| OM | 15.95% | ||
| PM (TTM) | 14.71% | ||
| GM | 48.81% | ||
| FCFM | 12.74% |
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-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 97.21% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.91% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.77 |
F-Score9
WACC7.86%
ROIC/WACC2.23
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)40.39%
EPS 3Y61.52%
EPS 5Y3.53%
EPS Q2Q%16.21%
EPS Next Y14.14%
EPS Next 2Y20.42%
EPS Next 3Y18.2%
EPS Next 5Y15.34%
Revenue 1Y (TTM)14.19%
Revenue growth 3Y22.35%
Revenue growth 5Y2%
Sales Q2Q%13.2%
Revenue Next Year14.52%
Revenue Next 2Y13.34%
Revenue Next 3Y11.9%
Revenue Next 5Y9.61%
EBIT growth 1Y27.26%
EBIT growth 3Y51.57%
EBIT growth 5Y2.08%
EBIT Next Year56.81%
EBIT Next 3Y25.24%
EBIT Next 5Y18.4%
FCF growth 1Y42.12%
FCF growth 3Y24.71%
FCF growth 5Y9.69%
OCF growth 1Y45.22%
OCF growth 3Y24.78%
OCF growth 5Y8.52%