| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
SAF Overview
Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide.
Safran Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | €115.02 |
| 52 Week High | €81.68 |
| 52 Week Low | €127.74 |
| Beta | 1.5 |
| 1 Month Change | 7.38% |
| 3 Month Change | -2.03% |
| 1 Year Change | 34.21% |
| 3 Year Change | -4.47% |
| 5 Year Change | 78.55% |
| Change since IPO | 858.50% |
Recent News & Updates
Shareholder Returns
| SAF | FR Aerospace & Defense | FR Market | |
|---|---|---|---|
| 7D | 6.8% | 3.2% | 0.03% |
| 1Y | 34.2% | 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
| SAF volatility | |
|---|---|
| SAF Beta | 1.5 |
| Industry Beta | 1.65 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1924 | 78,900 | Olivier Andries | https://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
| SAF fundamental statistics | |
|---|---|
| Market Cap | €49.03b |
| Earnings (TTM) | €1.37b |
| Revenue (TTM) | €14.66b |
35.9x
P/E Ratio3.3x
P/S RatioIs SAF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 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 Margin | 47.42% |
| Net Profit Margin | 9.32% |
| Debt/Equity Ratio | 46.8% |
How did SAF perform over the long term?
See historical performance and comparisonDividends
0.4%
Current Dividend Yield13%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 21:16 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.