ENXTBR:SAB

Stock Analysis Report

Société Anonyme Belge de Constructions Aéronautiques

Executive Summary

Société Anonyme Belge de Constructions Aéronautiques engages in the study, design, and manufacture of metal and composite structures, servo-systems, and sub-assemblies for the aerospace, civil aviation, and defense markets in Europe.

Rewards

PE ratio (8x) is below the Belgian market (17.1x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Does not have a meaningful market cap (€50M)



Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has Société Anonyme Belge de Constructions Aéronautiques's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.3%

SAB

1.5%

BE Aerospace & Defense

-0.5%

BE Market


1 Year Return

-13.7%

SAB

30.0%

BE Aerospace & Defense

10.7%

BE Market

Return vs Industry: SAB underperformed the Belgian Aerospace & Defense industry which returned 28.4% over the past year.

Return vs Market: SAB underperformed the Belgian Market which returned 14.3% over the past year.


Shareholder returns

SABIndustryMarket
7 Day-6.3%1.5%-0.5%
30 Day-11.4%5.0%-1.2%
90 Day-12.2%10.8%1.6%
1 Year-13.7%-13.7%32.4%30.0%13.0%10.7%
3 Year-29.2%-29.2%76.4%65.4%-1.3%-7.8%
5 Year-47.0%-47.0%130.1%102.0%3.9%-8.2%

Price Volatility Vs. Market

How volatile is Société Anonyme Belge de Constructions Aéronautiques's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Société Anonyme Belge de Constructions Aéronautiques undervalued compared to its fair value and its price relative to the market?

7.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAB (€20.8) is trading above our estimate of fair value (€1.18)

Significantly Below Fair Value: SAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAB is good value based on its PE Ratio (8x) compared to the Aerospace & Defense industry average (27.3x).

PE vs Market: SAB is good value based on its PE Ratio (8x) compared to the Belgian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SAB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SAB is good value based on its PB Ratio (0.6x) compared to the XE Aerospace & Defense industry average (2.3x).


Next Steps

Future Growth

How is Société Anonyme Belge de Constructions Aéronautiques forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Société Anonyme Belge de Constructions Aéronautiques has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Société Anonyme Belge de Constructions Aéronautiques performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAB has high quality earnings.

Growing Profit Margin: SAB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SAB has become profitable over the past 5 years, growing earnings by 40.2% per year.

Accelerating Growth: SAB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SAB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (15.2%).


Return on Equity

High ROE: SAB's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Société Anonyme Belge de Constructions Aéronautiques's financial position?


Financial Position Analysis

Short Term Liabilities: SAB's short term assets (€228.1M) exceed its short term liabilities (€65.5M).

Long Term Liabilities: SAB's short term assets (€228.1M) exceed its long term liabilities (€179.5M).


Debt to Equity History and Analysis

Debt Level: SAB's debt to equity ratio (155.2%) is considered high.

Reducing Debt: SAB's debt to equity ratio has increased from 73.4% to 155.2% over the past 5 years.

Debt Coverage: SAB's debt is not well covered by operating cash flow (6%).

Interest Coverage: SAB's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: SAB has a high level of physical assets or inventory.

Debt Coverage by Assets: SAB's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Société Anonyme Belge de Constructions Aéronautiques's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%4.3%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SAB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SAB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SAB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SAB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SAB is not paying a notable dividend for the Belgian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SAB's dividend in 3 years as they are not forecast to pay a notable one for the Belgian market.


Next Steps

Management

What is the CEO of Société Anonyme Belge de Constructions Aéronautiques's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average board tenure


CEO

Jongen Thibauld (48yo)

3.6yrs

Tenure

€327,355

Compensation

Mr. Jongen Thibauld has been the Chief Executive Officer of Société Anonyme Belge de Constructions Aéronautiques since June 01, 2016. After starting his career in 1998 as a Researcher at Unilever Research  ...


CEO Compensation Analysis

Compensation vs Market: Jongen's total compensation ($USD364.17K) is about average for companies of similar size in the Belgian market ($USD469.30K).

Compensation vs Earnings: Jongen's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.8yrs

Average Tenure

59yo

Average Age

Experienced Board: SAB's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Pierre De Graef

    Head of Brussels Plant

    • Didier Descamps

      Technical Director

      • Peter Reynaert

        Director of Operations

        • André Baus

          Head of Information Technology Department

          • Josianne Evrard

            Head of the Quality Department

            • Pierre-Michel Léonard

              Head of the Supply Chain Department

              • Dimitri Duray

                Chief Financial Officer

                • Tenure: 4.7yrs
              • Jongen Thibauld (48yo)

                Chief Executive Officer

                • Tenure: 3.6yrs
                • Compensation: €327.36k
              • Tiny Coppens

                Human Resources & Facility Director


                Board Members

                • Charles Edelstenne (81yo)

                  Director

                  • Loïk Segalen (59yo)

                    Director

                    • Tenure: 14.8yrs
                  • Remo Pellichero

                    Chairman of the Board

                    • Philippe Delaunois (78yo)

                      Independent Director

                      • Tenure: 9yrs
                    • Olivier de Beauregard (59yo)

                      Director

                      • Jacques de Smet

                        Independent Director

                        • Tenure: 10.4yrs
                      • Josée Sulzer (58yo)

                        Director

                        • Tenure: 0.8yrs
                      • Michèle Gillot

                        Independent Director

                        • Tenure: 2.6yrs
                      • Carole Fiquemont

                        Director

                        • Tenure: 2.3yrs

                      Company Information

                      Société Anonyme Belge de Constructions Aéronautiques's company bio, employee growth, exchange listings and data sources


                      Key Information

                      • Name: Société Anonyme Belge de Constructions Aéronautiques
                      • Ticker: SAB
                      • Exchange: ENXTBR
                      • Founded: 1920
                      • Industry: Aerospace and Defense
                      • Sector: Capital Goods
                      • Market Cap: €46.800m
                      • Shares outstanding: 2.40m
                      • Website: https://www.sabca.be

                      Number of Employees


                      Location

                      • Société Anonyme Belge de Constructions Aéronautiques
                      • Chaussée de Haecht 1470
                      • Brussels
                      • Brussels
                      • 1130
                      • Belgium

                      Listings

                      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                      SABENXTBR (Euronext Brussels)YesBearer SharesBEEURJan 1992
                      SABBBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992

                      Biography

                      Société Anonyme Belge de Constructions Aéronautiques engages in the study, design, and manufacture of metal and composite structures, servo-systems, and sub-assemblies for the aerospace, civil aviation, and defense markets in Europe. It is involved in the pre-design, design, development, production, testing, and after-sales support of large and complex metallic, as well as composite primary and secondary structures for civil and transport aircraft markets. The company’s specialties comprise metallic structures, including pressurized floors and flap support mechanisms; and CFRP skins with integrated stiffeners for flaps and horizontal stabilizers, as well as HTP spars and flap track fairings for its customers. It also produces special systems for business and commercial jets, such as direct drive valve equipping the A320 family and the A340-500/600, or hydraulic devices for the Dassault Falcon jets. In addition, the company designs, develops, produces, and tests various models of the Ariane European space launchers; and produces special interfaces like a quick-release connection for the Ariane 5 ground umbilicals, as well as fairings for the separation rockets. Further, it provides thrust vectoring control systems, including actuators and associated electronic local control loop for space launchers; and various solutions for upgrades of the structure, navigation and weapon avionics, power generation, chaff and flares, other systems integration, heavy maintenance, repairs, and major upgrades for military aircraft and helicopters. The company was founded in 1920 and is based in Brussels, Belgium. Société Anonyme Belge de Constructions Aéronautiques is a subsidiary of Dassault Belgique Aviation S.A. 


                      Company Analysis and Financial Data Status

                      All financial data provided by Standard & Poor's Capital IQ.
                      DataLast Updated (UTC time)
                      Company Analysis2020/01/25 20:41
                      End of Day Share Price2020/01/24 00:00
                      Earnings2019/06/30
                      Annual Earnings2018/12/31


                      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.