Dassault Aviation (AM) AI Stock Analysis

• Market Cap: €21.91B
• Dividend Yield: 1.72%
• Average Volume (3M): 60.40K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.59
• Revenue Growth: 29.91%
• EPS Growth: -2.24%
• Country: FR
• Employees: 14,589
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 4.94
• Shares Outstanding: 78,397,030
• 10 Day Avg. Volume: 44,253
• 30 Day Avg. Volume: 60,404
• PEG Ratio: 0.45
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 10.07
• 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: €304.40
• Price Target Upside: 10.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: €300.00 ▲(9.09% Upside)

Dassault Aviation's strong financial performance, characterized by robust profitability and cash flow management, is the primary driver of its stock score. However, technical indicators suggest a bearish trend, and valuation metrics indicate the stock may be overvalued, limiting upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Dassault Aviation's products, enhancing its market position and supporting long-term profitability.

Cash Generation

Significant cash generation from operations ensures Dassault Aviation can fund R&D, pay down debt, and invest in growth opportunities, bolstering financial stability.

Low Leverage

Low leverage reduces financial risk, providing Dassault Aviation with flexibility to navigate economic fluctuations and invest in strategic initiatives.

Negative Factors

Equity Base

A moderate equity base compared to total assets may limit Dassault Aviation's ability to leverage equity for growth, potentially affecting long-term capital structure.

Earnings Growth

Negative earnings growth suggests challenges in profitability, which could impact investor confidence and the company's ability to reinvest in its business.

Management of Liabilities

While liabilities are manageable, the need to strengthen equity positions indicates potential vulnerability in financial resilience, affecting long-term growth strategies.

Dassault Aviation Business Overview & Revenue Model

Company Description

Dassault Aviation is a French aerospace company that designs, manufactures, and sells military aircraft, business jets, and space systems. Established in 1929, the company operates primarily in two sectors: military aviation and civil aviation. Its core products include the Rafale fighter jet, the Falcon family of business jets, and various unmanned aerial vehicles (UAVs). Dassault Aviation is known for its cutting-edge technology and innovation in aerodynamics and systems integration, catering to both defense and civilian markets across the globe.

How the Company Makes Money

Dassault Aviation generates revenue through multiple streams, primarily from the sale of military and civilian aircraft. The military segment includes contracts for fighter jets and UAVs, often secured through government procurement processes. The civil aviation sector generates income from the sale of business jets and associated services. Additionally, the company earns money from after-sales services, including maintenance, repair, and overhaul (MRO) services for its aircraft. Significant partnerships with defense ministries and private corporations enhance its revenue potential, as do collaborative projects with other aerospace firms and technology providers. Furthermore, ongoing research and development in advanced aerospace technologies contribute to long-term growth and profitability.

Dassault Aviation Financial Statement Overview

Summary

Dassault Aviation demonstrates strong financial performance with high profitability, efficient cash generation, and stable financial leverage. The income statement shows a significant improvement in net profit margin and steady revenue growth. The balance sheet indicates low leverage with a solid debt-to-equity ratio, while cash flow analysis highlights robust cash conversion efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.57B	6.24B	4.80B	6.95B	7.25B	5.49B
Gross Profit	3.43B	2.36B	1.80B	601.05M	956.24M	125.45M
EBITDA	694.17M	666.33M	1.01B	773.54M	691.13M	445.09M
Net Income	782.07M	923.82M	693.40M	716.23M	605.39M	302.76M
Balance Sheet
Total Assets	32.13B	29.11B	23.49B	22.54B	16.22B	13.71B
Cash, Cash Equivalents and Short-Term Investments	9.57B	8.49B	7.37B	9.63B	4.98B	3.56B
Total Debt	203.75M	237.76M	262.44M	233.65M	226.35M	270.41M
Total Liabilities	25.94B	22.78B	17.75B	16.53B	10.92B	9.15B
Stockholders Equity	6.19B	6.33B	5.74B	6.01B	5.30B	4.56B
Cash Flow
Free Cash Flow	1.24B	1.54B	-1.02B	4.93B	1.49B	-1.04B
Operating Cash Flow	1.49B	1.88B	-672.61M	5.11B	1.66B	-565.23M
Investing Cash Flow	-208.72M	-1.26B	-877.83M	-4.89B	-213.64M	-484.69M
Financing Cash Flow	-473.24M	-479.65M	-964.51M	-299.36M	-159.54M	250.64M

Dassault Aviation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 275 is below the 20-day moving average (MA) of 279.12, below the 50-day MA of 279.71, and below the 200-day MA of 279.99, indicating a bearish trend. The MACD of -0.99 indicates Negative momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.77 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	―	$164.95B	33.27	23.80%	1.45%	5.12%	59.43%
HO	―	€50.43B	73.80	14.51%	1.50%	11.16%	-50.57%
FII	―	€2.11B	33.62	6.49%	0.78%	9.17%	12.78%
AM	―	€21.91B	28.07	12.93%	1.72%	29.91%	-2.24%
SAF	―	€126.90B	29.46	35.36%	0.96%	14.19%	161.87%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EXA	―	$1.42B	1,016.03	1.12%	―	29.80%	―