ENXTPA:SAF

Stock Analysis Report

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Executive Summary

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Safran's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.5%

SAF

-4.5%

FR Aerospace & Defense

-5.6%

FR Market


1 Year Return

-37.9%

SAF

-38.4%

FR Aerospace & Defense

-14.4%

FR Market

Return vs Industry: SAF matched the French Aerospace & Defense industry which returned -38.4% over the past year.

Return vs Market: SAF underperformed the French Market which returned -14.4% over the past year.


Shareholder returns

SAFIndustryMarket
7 Day-2.5%-4.5%-5.6%
30 Day3.5%-0.9%-4.2%
90 Day-5.9%-6.8%-3.3%
1 Year-37.9%-37.9%-38.3%-38.4%-12.5%-14.4%
3 Year1.4%-1.7%-18.8%-21.4%-2.4%-10.8%
5 Year40.7%30.7%13.5%5.9%22.4%4.2%

Price Volatility Vs. Market

How volatile is Safran's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Safran undervalued compared to its fair value and its price relative to the market?

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAF (€88.7) is trading below our estimate of fair value (€138)

Significantly Below Fair Value: SAF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAF is poor value based on its PE Ratio (56x) compared to the FR Aerospace & Defense industry average (17x).

PE vs Market: SAF is poor value based on its PE Ratio (56x) compared to the French market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: SAF is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SAF is overvalued based on its PB Ratio (3.1x) compared to the FR Aerospace & Defense industry average (1.3x).


Next Steps

Future Growth

How is Safran forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAF's forecast earnings growth (30% per year) is above the savings rate (0.6%).

Earnings vs Market: SAF's earnings (30% per year) are forecast to grow faster than the French market (23.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAF's revenue (10% per year) is forecast to grow faster than the French market (6.8% per year).

High Growth Revenue: SAF's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAF's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Safran performed over the past 5 years?

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAF has high quality earnings.

Growing Profit Margin: SAF's current net profit margins (3.1%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: SAF has become profitable over the past 5 years, growing earnings by 21.3% per year.

Accelerating Growth: SAF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAF had negative earnings growth (-69.1%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-36%).


Return on Equity

High ROE: SAF's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Safran's financial position?


Financial Position Analysis

Short Term Liabilities: SAF's short term assets (€20.7B) do not cover its short term liabilities (€22.7B).

Long Term Liabilities: SAF's short term assets (€20.7B) exceed its long term liabilities (€8.1B).


Debt to Equity History and Analysis

Debt Level: SAF's debt to equity ratio (58.3%) is considered high.

Reducing Debt: SAF's debt to equity ratio has reduced from 60.4% to 58.3% over the past 5 years.

Debt Coverage: SAF's debt is well covered by operating cash flow (37.4%).

Interest Coverage: SAF's interest payments on its debt are well covered by EBIT (92.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Safran current dividend yield, its reliability and sustainability?

1.91%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SAF is not paying a notable dividend for the French market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Philippe Petitcolin (68 yo)

5.5yrs

Tenure

€2,931,204

Compensation

Mr. Philippe Petitcolin serves as Independent Director at Pernod Ricard SA since November 8, 2019. He has been the Chief Executive Officer and Director of Safran SA since April 23, 2015. He has been a Inde ...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD3.45M) is about average for companies of similar size in the French market ($USD3.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philippe Petitcolin
CEO & Director5.5yrs€2.93m0.0099%
€ 3.7m
Bernard-Pierre Delpit
Chief Financial Officerno datano datano data
Francis Gaillard
Administration Directorno datano datano data
Coralie Bouscasse
Group General Counsel4.33yrsno datano data
Pascale DuBois
Executive Vice President of Communicationno datano datano data
Stéphane Dubois
Executive Vice President of Human Resources1.75yrsno datano data
Olivier Andries
Executive Vice President0.083yr€243.08kno data
Jean-Pierre Cojan
Executive Vice President of Strategy and Transformationno datano datano data
Jean-Lin Fournereaux
Corporate Senior Vice President of Spaceno datano datano data
Herve Bouaziz
Executive Vice President for Strategy & Business Development - Sagemno datano datano data
Stéphane Cueille
Senior Executive Vice President of R&T and Innovation4.25yrsno datano data
Eric Dalbiès
Executive Vice President of Strategy and M&Ano datano datano data

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SAF's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philippe Petitcolin
CEO & Director5.5yrs€2.93m0.0099%
€ 3.7m
Gérard Le Page
Chairman of Teuchos and Chief Executive Officer of Teuchosno datano datano data
Anne Bouverot
Chairman of Morpho5.17yrsno datano data
Jean-Lou Chameau
Independent Director9.5yrs€83.72k0.00023%
€ 87.1k
Monique Cohen
Lead Independent Director2.58yrs€94.38k0.00012%
€ 45.4k
Ross McInnes
Chairman of the Board5.5yrs€498.68k0.0018%
€ 666.4k
Francis Mer
Honorary Chairman7.75yrs€25.58kno data
Odile Desforges
Independent Director9.5yrs€80.23k0.00012%
€ 45.4k
Marc Aubry
Employee Shareholders Director0.42yrno datano data
Hélène Auriol-Pottier
Independent Director3.33yrs€76.73k0.00012%
€ 45.4k
Vincent Imbert
Director6.58yrsno datano data
Daniel Mazaltarim
Director5.92yrs€59.27k0.00046%
€ 174.2k

5.5yrs

Average Tenure

64yo

Average Age

Experienced Board: SAF's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

Safran SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Safran SA
  • Ticker: SAF
  • Exchange: ENXTPA
  • Founded: 1924
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: €37.864b
  • Shares outstanding: 426.87m
  • Website: https://www.safran-group.com

Number of Employees


Location

  • Safran SA
  • 2, Boulevard du Général Martial Valin
  • Cedex 15
  • Paris
  • Ile-de-France
  • 75724
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAFENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 1999
SEJ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
SAFR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
0IU8LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1999
SAFPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1999
SAFWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 1999
SAFSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJul 1999
SAFBIT (Borsa Italiana)YesOrdinary SharesITEURJul 1999
SAF NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 1999
SAFR.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDAug 2007
SEJUBST (Boerse-Stuttgart)SPON ADRDEEURAug 2007

Biography

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion, Aircraft Equipment, and Defense. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 22:36
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.