SAFRAN SA (SAF.PA) Stock Fundamental Analysis
EPA:SAF - Euronext Paris - Matif - FR0000073272 - Common Stock - Currency: EUR
Overall SAF gets a fundamental rating of 5 out of 10. We evaluated SAF against 47 industry peers in the Aerospace & Defense industry. SAF has an average financial health and profitability rating. 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: 78.72% of the companies in the same industry are doing better.
SAF has a Return On Equity of -6.55%. This is in the lower half of the industry: SAF underperforms 76.60% of its industry peers.
The Return On Invested Capital of SAF (16.38%) is better than 95.74% 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
Looking at the Operating Margin, with a value of 14.48%, SAF belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAF is creating value.
Compared to 1 year ago, SAF has more shares outstanding
SAF has less shares outstanding than it did 5 years ago.
SAF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that SAF is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SAF (2.36) is comparable to the rest of the industry.
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 has a Debt to FCF ratio of 1.50. This is amongst the best in 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 | 2.36 |
ROIC/WACC2.11
WACC7.76%
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: 87.23% 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.
SAF has a Quick ratio of 0.59. This is in the lower half of the industry: SAF underperforms 72.34% of its industry peers.
| 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.
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 38.07, the valuation of SAF can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SAF is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.04. SAF is valued slightly more expensive when compared to this.
SAF is valuated quite expensively with a Price/Forward Earnings ratio of 34.70.
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 (37.64), we can say SAF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.07 | ||
| Fwd PE | 34.7 |
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 63.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.98 | ||
| EV/EBITDA | 21.23 |
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)3.93
PEG (5Y)10.79
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.04%.
SAF's Dividend Yield is a higher than the industry average which is at 1.18.
With a Dividend Yield of 1.04, SAF pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 (7/25/2025, 7:00:00 PM)
277.5
-1.6 (-0.57%)
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 Cap117.56B
Analysts77.5
Price Target277.65 (0.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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%
PT rev (3m)4.49%
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)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.07 | ||
| Fwd PE | 34.7 | ||
| P/S | 4.24 | ||
| P/FCF | 34.98 | ||
| P/OCF | 24.84 | ||
| P/B | 11.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.23 |
EPS(TTM)7.29
EY2.63%
EPS(NY)8
Fwd EY2.88%
FCF(TTM)7.93
FCFY2.86%
OCF(TTM)11.17
OCFY4.03%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.93
PEG (5Y)10.79
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 | 2.36 |
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%