SAFRAN SA (SEJ1.DE) Stock Fundamental Analysis
FRA:SEJ1 - Deutsche Boerse Ag - FR0000073272 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SEJ1. SEJ1 was compared to 45 industry peers in the Aerospace & Defense industry. SEJ1 has an average financial health and profitability rating. SEJ1 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SEJ1 was profitable.
In the past year SEJ1 had a positive cash flow from operations.
In multiple years SEJ1 reported negative net income over the last 5 years.
SEJ1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SEJ1 has a worse Return On Assets (-1.21%) than 84.44% of its industry peers.
SEJ1's Return On Equity of -6.55% is on the low side compared to the rest of the industry. SEJ1 is outperformed by 82.22% of its industry peers.
SEJ1's Return On Invested Capital of 16.38% is amongst the best of the industry. SEJ1 outperforms 91.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SEJ1 is above the industry average of 8.61%.
The 3 year average ROIC (12.75%) for SEJ1 is below the current ROIC(16.38%), indicating increased profibility in the last year.
| 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
SEJ1 has a Operating Margin of 14.48%. This is amongst the best in the industry. SEJ1 outperforms 84.44% of its industry peers.
In the last couple of years the Operating Margin of SEJ1 has remained more or less at the same level.
SEJ1's Gross Margin of 47.88% is fine compared to the rest of the industry. SEJ1 outperforms 75.56% of its industry peers.
In the last couple of years the Gross Margin of SEJ1 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
SEJ1 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SEJ1 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SEJ1 has less shares outstanding
SEJ1 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that SEJ1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
SEJ1 has a Altman-Z score of 2.34. This is comparable to the rest of the industry: SEJ1 outperforms 46.67% of its industry peers.
The Debt to FCF ratio of SEJ1 is 1.50, which is an excellent value as it means it would take SEJ1, only 1.50 years of fcf income to pay off all of its debts.
SEJ1's Debt to FCF ratio of 1.50 is amongst the best of the industry. SEJ1 outperforms 84.44% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that SEJ1 is not too dependend on debt financing.
SEJ1's Debt to Equity ratio of 0.46 is fine compared to the rest of the industry. SEJ1 outperforms 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.34 |
ROIC/WACC2.07
WACC7.91%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SEJ1 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, SEJ1 is doing worse than 88.89% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that SEJ1 may have some problems paying its short term obligations.
SEJ1 has a Quick ratio of 0.59. This is in the lower half of the industry: SEJ1 underperforms 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
SEJ1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.11%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.53% on average over the past years.
SEJ1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.19%.
The Revenue has been growing slightly by 2.00% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.86% on average over the next years. This is quite good.
SEJ1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
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
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
SEJ1 is valuated quite expensively with a Price/Earnings ratio of 37.71.
Compared to the rest of the industry, the Price/Earnings ratio of SEJ1 is on the same level as its industry peers.
SEJ1 is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.38, SEJ1 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SEJ1 is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, SEJ1 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.71 | ||
| Fwd PE | 34.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SEJ1.
SEJ1's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.65 | ||
| EV/EBITDA | 21.03 |
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 SEJ1's earnings are expected to grow with 16.36% in the coming years.
PEG (NY)3.89
PEG (5Y)10.69
EPS Next 2Y17.96%
EPS Next 3Y16.36%
5. Dividend
5.1 Amount
SEJ1 has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
SEJ1's Dividend Yield is a higher than the industry average which is at 1.20.
With a Dividend Yield of 1.08, SEJ1 pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of SEJ1 has a limited annual growth rate of 3.72%.
Dividend Growth(5Y)3.72%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SEJ1 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SEJ1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-136.58%
EPS Next 2Y17.96%
EPS Next 3Y16.36%
FRA:SEJ1 (7/1/2025, 7:00:00 PM)
274.9
+0.9 (+0.33%)
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 Cap116.46B
Analysts79.13
Price Target270.98 (-1.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend2.19
Dividend Growth(5Y)3.72%
DP-136.58%
Div Incr Years3
Div Non Decr Years3
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)0.06%
PT rev (3m)0.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.01%
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 | 37.71 | ||
| Fwd PE | 34.38 | ||
| P/S | 4.2 | ||
| P/FCF | 34.65 | ||
| P/OCF | 24.61 | ||
| P/B | 11.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.03 |
EPS(TTM)7.29
EY2.65%
EPS(NY)8
Fwd EY2.91%
FCF(TTM)7.93
FCFY2.89%
OCF(TTM)11.17
OCFY4.06%
SpS65.43
BVpS24.02
TBVpS-6.39
PEG (NY)3.89
PEG (5Y)10.69
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 | 2.34 |
F-Score6
WACC7.91%
ROIC/WACC2.07
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%