ENXTPA:SAF

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

-1.6%

SAF

-0.8%

FR Aerospace & Defense

-0.9%

FR Market


1 Year Return

26.2%

SAF

18.8%

FR Aerospace & Defense

12.5%

FR Market

Return vs Industry: SAF exceeded the French Aerospace & Defense industry which returned 18.8% over the past year.

Return vs Market: SAF exceeded the French Market which returned 12.5% over the past year.


Shareholder returns

SAFIndustryMarket
7 Day-1.6%-0.8%-0.9%
30 Day-2.1%-2.4%-0.8%
90 Day3.9%-5.2%-0.5%
1 Year28.1%26.2%20.6%18.8%16.3%12.5%
3 Year129.7%118.2%99.9%90.3%43.1%29.1%
5 Year206.0%178.3%172.8%148.5%71.4%45.4%

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?

27.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAF (€138.1) is trading above our estimate of fair value (€135.3)

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


Price To Earnings Ratio

PE vs Industry: SAF is poor value based on its PE Ratio (27.4x) compared to the Aerospace & Defense industry average (25.2x).

PE vs Market: SAF is poor value based on its PE Ratio (27.4x) compared to the French market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: SAF is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SAF is overvalued based on its PB Ratio (4.9x) compared to the FR Aerospace & Defense industry average (1.8x).


Next Steps

Future Growth

How is Safran forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAF's forecast earnings growth (12.3% per year) is above the savings rate (0.7%).

Earnings vs Market: SAF's earnings (12.3% per year) are forecast to grow faster than the French market (11.4% per year).

High Growth Earnings: SAF's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAF's revenue (4.9% per year) is forecast to grow faster than the French market (4.4% per year).

High Growth Revenue: SAF's revenue (4.9% 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 (19.7%).


Next Steps

Past Performance

How has Safran performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAF's earnings have grown significantly by 33.6% per year over the past 5 years.

Accelerating Growth: SAF's earnings growth over the past year (20.7%) is below its 5-year average (33.6% per year).

Earnings vs Industry: SAF earnings growth over the past year (20.7%) underperformed the Aerospace & Defense industry 24.9%.


Return on Equity

High ROE: SAF's Return on Equity (18%) is considered low.


Return on Assets

ROA vs Industry: SAF has a higher Return on Assets than the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: SAF's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Safran's financial position?


Financial Position Analysis

Short Term Liabilities: SAF's short term assets (€19.4B) do not cover its short term liabilities (€21.9B)

Long Term Liabilities: SAF's short term assets (19.4B) exceeds its long term liabilities (7.8B)


Debt to Equity History and Analysis

Debt Level: SAF's debt to equity ratio (50.4%) is considered high

Reducing Debt: SAF's debt to equity ratio has reduced from 53.4% to 50.4% over the past 5 years.

Debt Coverage: SAF's debt is well covered by operating cash flow (53.8%).

Interest Coverage: SAF's interest payments on its debt are well covered by EBIT (58.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAF's debt is covered by short term assets (assets are 3.082130x debt).


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%4.7%industryaverage1.5%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAF's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.55%).

High Dividend: SAF's dividend (1.32%) is low compared to the top 25% of dividend payers in the French market (4.71%).

Stable Dividend: SAF's dividends per share have been stable in the past 10 years.

Growing Dividend: SAF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), SAF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAF's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

What is the CEO of Safran's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Philippe Petitcolin (67yo)

4.5yrs

Tenure

€2,892,341

Compensation

Mr. Philippe Petitcolin has been the Chief Executive Officer and Director of Safran SA since April 23, 2015. He has been a Director of Electricité de France SA (EDF) since May 2019. He began his career in  ...


CEO Compensation Analysis

Compensation vs. Market: Philippe's total compensation ($USD3.22M) is about average for companies of similar size in the French market ($USD3.60M).

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


Management Age and Tenure

3.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: SAF's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

65yo

Average Age

Experienced Board: SAF's board of directors are considered experienced (4.5 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


Management Team

  • Francis Gaillard

    Administration Director

    • Tenure: 0yrs
  • Pascale DuBois

    Executive Vice President of Communication

    • Tenure: 0yrs
  • Jean-Lin Fournereaux (67yo)

    Corporate Senior Vice President of Space

    • Tenure: 0yrs
  • Jean-Pierre Cojan (66yo)

    Executive Vice President of Strategy and Transformation

    • Tenure: 0yrs
  • Philippe Petitcolin (67yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: €2.89m
  • Bernard-Pierre Delpit (55yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Herve Bouaziz (51yo)

    Executive Vice President for Strategy & Business Development - Sagem

    • Tenure: 0yrs
  • Stéphane Cueille (46yo)

    Senior EVP of R&T and Innovation & CTO

    • Tenure: 3.3yrs
  • Coralie Bouscasse

    Group General Counsel

    • Tenure: 3.3yrs
  • Stéphane Dubois

    Executive VP of Human Resources

    • Tenure: 0.8yrs

Board Members

  • Jean-Lou Chameau (66yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: €70.20k
  • Monique Cohen (63yo)

    Lead Independent Director

    • Tenure: 1.6yrs
    • Compensation: €85.00k
  • Patrick Pélata (64yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €73.90k
  • Ross McInnes (65yo)

    Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: €465.81k
  • Francis Mer (80yo)

    Honorary Chairman

    • Tenure: 6.8yrs
    • Compensation: €25.58k
  • Philippe Petitcolin (67yo)

    CEO & Director

    • Tenure: 4.5yrs
    • Compensation: €2.89m
  • Odile Desforges (69yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: €81.30k
  • Anne Bouverot (53yo)

    Chairman of Morpho

    • Tenure: 4.2yrs
  • Gérard Le Page

    Chairman of Teuchos and Chief Executive Officer of Teuchos

    • Tenure: 0yrs
  • Vincent Imbert (63yo)

    Director

    • Tenure: 5.6yrs

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: €59.477b
  • Shares outstanding: 430.68m
  • 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
SAFR.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDAug 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 Analysis2019/10/23 20:48
End of Day Share Price2019/10/23 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.