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SAF

SafranENXTPA:SAF Stock Report

Market Cap

€49.0b

7D

6.8%

1Y

34.2%

Updated

27 Sep, 2021

Data

Company Financials +
SAF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health5/6
Dividends0/6

SAF Overview

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

Safran Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Safran
Historical stock prices
Current Share Price€115.02
52 Week High€81.68
52 Week Low€127.74
Beta1.5
1 Month Change7.38%
3 Month Change-2.03%
1 Year Change34.21%
3 Year Change-4.47%
5 Year Change78.55%
Change since IPO858.50%

Recent News & Updates

Shareholder Returns

SAFFR Aerospace & DefenseFR Market
7D6.8%3.2%0.03%
1Y34.2%59.3%39.2%

Return vs Industry: SAF underperformed the French Aerospace & Defense industry which returned 59.3% over the past year.

Return vs Market: SAF underperformed the French Market which returned 39.2% over the past year.

Price Volatility

Is SAF's price volatile compared to industry and market?
SAF volatility
SAF Beta1.5
Industry Beta1.65
Market Beta1

Stable Share Price: SAF is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SAF's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192478,900Olivier Andrieshttps://www.safran-group.com

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 Aerospace Propulsion segment designs, develops, produces, and markets propulsion systems for commercial aircraft, military transport, training and combat aircraft, rocket engines, civil and military helicopters, and tactical missiles and drones.

Safran Fundamentals Summary

How do Safran's earnings and revenue compare to its market cap?
SAF fundamental statistics
Market Cap€49.03b
Earnings (TTM)€1.37b
Revenue (TTM)€14.66b

35.9x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAF income statement (TTM)
Revenue€14.66b
Cost of Revenue€7.71b
Gross Profit€6.95b
Expenses€5.58b
Earnings€1.37b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.20
Gross Margin47.42%
Net Profit Margin9.32%
Debt/Equity Ratio46.8%

How did SAF perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAF (€111.38) is trading below our estimate of fair value (€146.32)

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 (34.8x) compared to the French Aerospace & Defense industry average (25.5x).

PE vs Market: SAF is poor value based on its PE Ratio (34.8x) compared to the French market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAF is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SAF is overvalued based on its PB Ratio (3.6x) compared to the FR Aerospace & Defense industry average (1.7x).


Future Growth

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

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAF's forecast earnings growth (29% per year) is above the savings rate (0.4%).

Earnings vs Market: SAF's earnings (29% per year) are forecast to grow faster than the French market (12.1% per year).

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

Revenue vs Market: SAF's revenue (11.8% per year) is forecast to grow faster than the French market (6.3% per year).

High Growth Revenue: SAF's revenue (11.8% 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 (14.7%).


Past Performance

How has Safran performed over the past 5 years?

-18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAF has a large one-off loss of €580.0M impacting its June 30 2021 financial results.

Growing Profit Margin: SAF's current net profit margins (9.3%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: SAF's earnings have declined by 18.6% per year over the past 5 years.

Accelerating Growth: SAF's earnings growth over the past year (102.4%) exceeds its 5-year average (-18.6% per year).

Earnings vs Industry: SAF earnings growth over the past year (102.4%) exceeded the Aerospace & Defense industry -8.4%.


Return on Equity

High ROE: SAF's Return on Equity (10.4%) is considered low.


Financial Health

How is Safran's financial position?


Financial Position Analysis

Short Term Liabilities: SAF's short term assets (€18.8B) exceed its short term liabilities (€17.8B).

Long Term Liabilities: SAF's short term assets (€18.8B) exceed its long term liabilities (€8.8B).


Debt to Equity History and Analysis

Debt Level: SAF's debt to equity ratio (46.8%) is considered high.

Reducing Debt: SAF's debt to equity ratio has reduced from 55.1% to 46.8% over the past 5 years.

Debt Coverage: SAF's debt is well covered by operating cash flow (25%).

Interest Coverage: SAF's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

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

0.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAF's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.28%).

High Dividend: SAF's dividend (0.39%) is low compared to the top 25% of dividend payers in the French market (3.98%).


Stability and Growth of Payments

Stable Dividend: SAF is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: SAF is not paying a notable dividend for the French market, therefore no need to check if payments are 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?

1.7yrs

Average management tenure


CEO

Olivier Andries (59 yo)

0.67

Tenure

€243,080

Compensation

Mr. Olivier Andries has been Chief Executive Officer and Director of Safran SA since January 1, 2021. Mr. Andries served as Executive Vice President of Safran SA since September 10, 2020 until January 1, 2...


Leadership Team

Experienced Management: SAF's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: SAF's board of directors are considered experienced (6.1 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 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: €49.029b
  • Shares outstanding: 426.26m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 21:16
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.