Dassault Aviation (AM) AI Stock Analysis

• Market Cap: €21.32B
• Dividend Yield: 1.73%
• Average Volume (3M): 63.58K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.61
• Revenue Growth: 29.91%
• EPS Growth: -2.24%
• Country: FR
• Employees: 14,589
• Sector: Industrials
• Sector Strength: 89
• Industry: Aerospace & Defense
• EPS (TTM): 4.94
• Shares Outstanding: 78,397,030
• 10 Day Avg. Volume: 72,855
• 30 Day Avg. Volume: 63,577
• PEG Ratio: 1.00
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €328.50
• Price Target Upside: 21.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: €283.00 ▲(4.27%Upside)

Dassault Aviation's overall stock score is influenced by its strong financial performance, which is offset by mixed technical indicators and moderate valuation metrics. The company's robust profitability and cash flow management are significant strengths. However, technical analysis suggests caution due to bearish trends and valuation concerns. The absence of new earnings call data and corporate events leaves these areas neutral in the evaluation.

Positive Factors

Cash flow performance

The free cash flow beat was a positive surprise, with €2.56bn of net advances received.

Revenue performance

Stronger defense maintenance and development revenues than expected drove an 11% beat to revenues.

Negative Factors

Product development

The Falcon 6X is still high in its learning curve, which may impact the product mix negatively.

Supply challenges

Supply challenges remain on the Falcon.

Dassault Aviation Business Overview & Revenue Model

Company Description

Dassault Aviation (AM) is a leading aerospace company, renowned for its expertise in the design, manufacture, and support of military and business aircraft. The company operates in two primary sectors: military aviation, where it produces fighter jets like the Rafale, and business aviation, where it offers the Falcon series of jets. Dassault Aviation is recognized for its high-performance aircraft and innovative technologies, serving both governmental and private clients worldwide.

How the Company Makes Money

Dassault Aviation generates revenue through the sale of its aircraft, including both military fighter jets and business jets. The military aviation segment is a significant source of income, with substantial government contracts for the production and maintenance of fighter jets like the Rafale. In business aviation, the company earns revenue from the sale of its Falcon jets, which are popular in the private and corporate sectors. Additionally, Dassault Aviation provides maintenance, repair, and overhaul (MRO) services, as well as aftermarket support, which contribute to its earnings. The company also engages in strategic partnerships and collaborations to enhance its technological capabilities and market reach, further bolstering its revenue streams.

Dassault Aviation Financial Statement Overview

Summary

Dassault Aviation demonstrates strong profitability with a high net profit margin and efficient cost management. The company also shows solid operational efficiency and cash flow performance, though the equity base can be improved. Overall, the financial health is robust, supporting consistent growth.

Income Statement

Dassault Aviation's income statement reflects strong profitability with a Gross Profit Margin of 100% in the latest year, indicating efficient cost management. The company also reported a Net Profit Margin of 14.8% for the same period, a significant improvement from the previous year, driven by steady revenue growth of 29.9%. EBIT and EBITDA margins stand at 8.5% and 10.7%, respectively, showcasing solid operational efficiency. Despite some fluctuations in annual revenue, the overall trajectory remains positive, signaling robust financial health.

Balance Sheet

The balance sheet of Dassault Aviation appears stable with a Debt-to-Equity Ratio of 0.04, indicating low leverage and reduced financial risk. The Return on Equity (ROE) is 14.6%, highlighting effective use of shareholder funds to generate profit. However, the Equity Ratio is 21.7%, which suggests a relatively moderate equity base compared to total assets, indicating potential room for strengthening equity positions. Overall, the company maintains a solid financial position with manageable liabilities.

Cash Flow

Cash flow analysis reveals a strong performance with a Free Cash Flow of €1.54 billion, reflecting significant cash generation from operations. The Operating Cash Flow to Net Income Ratio suggests robust cash conversion efficiency. Additionally, the Free Cash Flow to Net Income Ratio is favorable, indicating that the company effectively translates its earnings into cash. Despite occasional volatility in cash flow growth rates, the overall cash management remains strong, supporting long-term financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.24B	4.80B	6.95B	7.25B	5.49B
Gross Profit	2.36B	1.80B	601.05M	956.24M	125.45M
EBITDA	666.33M	1.01B	773.54M	691.13M	445.09M
Net Income	923.82M	693.40M	716.23M	605.39M	302.76M
Balance Sheet
Total Assets	29.11B	23.49B	22.54B	16.22B	13.71B
Cash, Cash Equivalents and Short-Term Investments	8.49B	7.37B	9.63B	4.98B	3.56B
Total Debt	237.76M	262.44M	233.65M	226.35M	270.41M
Total Liabilities	22.78B	17.75B	16.53B	10.92B	9.15B
Stockholders Equity	6.33B	5.74B	6.01B	5.30B	4.56B
Cash Flow
Free Cash Flow	1.54B	-1.02B	4.93B	1.49B	-1.04B
Operating Cash Flow	1.88B	-672.61M	5.11B	1.66B	-565.23M
Investing Cash Flow	-1.26B	-877.83M	-4.89B	-213.64M	-484.69M
Financing Cash Flow	-479.65M	-964.51M	-299.36M	-159.54M	250.64M

Dassault Aviation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 271.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AM, the sentiment is Negative. The current price of 271.4 is below the 20-day moving average (MA) of 288.71, below the 50-day MA of 300.10, and above the 200-day MA of 251.23, indicating a neutral trend. The MACD of -8.49 indicates Positive momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 21.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:AM.

Dassault Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	75 Outperform	$142.03B	31.98	21.75%	1.69%	5.16%	12.89%
FII	72 Outperform	€2.07B	33.00	6.49%	0.81%	10.03%	48.93%
EXA	71 Outperform	€1.96B	―	-2.92%	―	15.56%	-123.05%
SAF	70 Outperform	€117.40B	62.44	-6.13%	1.03%	17.19%	-119.44%
HO	68 Neutral	€48.48B	70.94	14.51%	1.57%	11.16%	-50.57%
AM	66 Neutral	€21.32B	27.31	12.93%	1.73%	29.91%	-2.24%
Sector *	65 Neutral	$11.04B	15.74	4.60%	2.11%	3.27%	-26.87%

Dassault Aviation Corporate Events

Dassault Aviation Releases 2024 Financial Report Summary

Dassault Aviation has released a short form of its 2024 Annual Financial Report, which is now accessible on their website. The full report will be available and filed with the French Financial Markets Authority later in March 2025, providing stakeholders with detailed insights into the company’s financial performance.