SAFRAN SA (SAF.PA)
FR0000073272 - Common Stock
We assign a fundamental rating of 5 out of 10 to SAF. SAF was compared to 42 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. SAF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SAF was profitable.
SAF had a positive operating cash flow in the past year.
SAF had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SAF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SAF (3.09%) is comparable to the rest of the industry.
The Return On Equity of SAF (14.60%) is comparable to the rest of the industry.
SAF's Return On Invested Capital of 13.97% is amongst the best of the industry. SAF outperforms 85.00% 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 8.70%.
The 3 year average ROIC (8.54%) for SAF is below the current ROIC(13.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 14.6% | ||
| ROIC | 13.97% |
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 has a Profit Margin (6.37%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SAF has grown nicely.
SAF has a Operating Margin of 14.32%. This is amongst the best in the industry. SAF outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of SAF has grown nicely.
SAF has a better Gross Margin (42.99%) than 70.00% of its industry peers.
In the last couple of years the Gross Margin of SAF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.32% | ||
| PM (TTM) | 6.37% | ||
| GM | 42.99% |
OM growth 3Y17.41%
OM growth 5Y7.35%
PM growth 3Y90.19%
PM growth 5Y19%
GM growth 3Y0.57%
GM growth 5Y1.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SAF is creating value.
SAF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAF has less shares outstanding
The debt/assets ratio for SAF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.04 indicates that SAF is not a great score, but indicates only limited risk for bankruptcy at the moment.
SAF has a Altman-Z score (2.04) which is in line with its industry peers.
SAF has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
SAF's Debt to FCF ratio of 1.63 is amongst the best of the industry. SAF outperforms 92.50% of its industry peers.
SAF has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, SAF is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.9
WACC7.36%
2.3 Liquidity
SAF has a Current Ratio of 0.88. 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 Current ratio of 0.88 is on the low side compared to the rest of the industry. SAF is outperformed by 90.00% of its industry peers.
A Quick Ratio of 0.61 indicates that SAF may have some problems paying its short term obligations.
The Quick ratio of SAF (0.61) is worse than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.30% 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 0.83% on average per year.
The Revenue has grown by 17.06% in the past year. This is quite good.
Measured over the past years, SAF shows a small growth in Revenue. The Revenue has been growing by 2.38% on average per year.
EPS 1Y (TTM)44.3%
EPS 3Y34.77%
EPS 5Y0.83%
EPS Q2Q%36.25%
Revenue 1Y (TTM)17.06%
Revenue growth 3Y12.45%
Revenue growth 5Y2.38%
Sales Q2Q%19.21%
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 19.34% yearly.
The Revenue is expected to grow by 10.78% on average over the next years. This is quite good.
EPS Next Y51.58%
EPS Next 2Y35.62%
EPS Next 3Y28.91%
EPS Next 5Y19.34%
Revenue Next Year17.69%
Revenue Next 2Y16.62%
Revenue Next 3Y14.23%
Revenue Next 5Y10.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.10 indicates a quite expensive valuation of SAF.
62.50% of the companies in the same industry are cheaper than SAF, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SAF to the average of the S&P500 Index (31.24), we can say SAF is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.26, the valuation of SAF can be described as rather expensive.
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 67.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, SAF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.1 | ||
| Fwd PE | 23.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAF indicates a slightly more expensive valuation: SAF is more expensive than 60.00% of the companies listed in the same industry.
70.00% 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 | 27.11 | ||
| EV/EBITDA | 16.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SAF may justify a higher PE ratio.
A more expensive valuation may be justified as SAF's earnings are expected to grow with 28.91% in the coming years.
PEG (NY)0.7
PEG (5Y)43.56
EPS Next 2Y35.62%
EPS Next 3Y28.91%
5. Dividend
5.1 Amount
SAF has a Yearly Dividend Yield of 1.06%.
SAF's Dividend Yield is comparable with the industry average which is at 1.56.
With a Dividend Yield of 1.06, SAF pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector 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
55.62% of the earnings are spent on dividend by SAF. This is a bit on the high side, but may be sustainable.
DP55.62%
EPS Next 2Y35.62%
EPS Next 3Y28.91%
SAFRAN SA
EPA:SAF (10/10/2024, 3:49:15 PM)
201.05
-2.85 (-1.4%)
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 Cap84.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.1 | ||
| Fwd PE | 23.26 | ||
| 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)0.7
PEG (5Y)43.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 14.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.32% | ||
| PM (TTM) | 6.37% | ||
| GM | 42.99% | ||
| 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.61 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)44.3%
EPS 3Y34.77%
EPS 5Y
EPS Q2Q%
EPS Next Y51.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.06%
Revenue growth 3Y12.45%
Revenue growth 5Y
Sales 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