Dassault Aviation (AM) AI Stock Analysis

• Market Cap: €24.22B
• Dividend Yield: 1.09%
• Average Volume (3M): 60.77K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.57
• Revenue Growth: 29.86%
• EPS Growth: 37.44%
• Country: FR
• Employees: 14,589
• Sector: Industrials
• Sector Strength: 91
• Industry: Aerospace & Defense
• EPS (TTM): 11.78
• Shares Outstanding: 78,397,030
• 10 Day Avg. Volume: 54,717
• 30 Day Avg. Volume: 60,769
• PEG Ratio: 1.79
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.37
• 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: -1.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Dassault Aviation scores well due to its robust financial performance, characterized by strong profitability, efficient cash flow generation, and low leverage. The technical analysis supports a positive trend with the stock trading above key moving averages. However, the valuation suggests a premium pricing, which could limit upside potential. The absence of recent earnings call or corporate events data means these factors didn't influence the score.

Dassault Aviation Business Overview & Revenue Model

Company Description

Dassault Aviation is a French aerospace company that designs, manufactures, and sells both military and business aircraft. It operates primarily in two sectors: military aviation and business jet manufacturing, offering products such as the Rafale fighter jet and the Falcon series of business jets. The company is recognized for its technological expertise, innovation, and commitment to delivering high-performance aircraft.

How the Company Makes Money

Dassault Aviation generates revenue through the sale of its aircraft, mainly focusing on two key areas: military and business aviation. In the military sector, the company earns money by selling fighter jets like the Rafale to various governments and defense organizations worldwide. These sales often involve long-term contracts and partnerships with national governments. In the business aviation sector, Dassault Aviation earns revenue from its Falcon series of business jets, catering to corporate clients and high-net-worth individuals seeking private air travel solutions. Additionally, the company provides maintenance, repair, and overhaul (MRO) services, training, and support for its aircraft, further contributing to its earnings. Strategic partnerships and collaborations with other aerospace and defense companies also play a significant role in its revenue generation.

Dassault Aviation Financial Statement Overview

Summary

Dassault Aviation demonstrates strong financial performance with high profitability, efficient cash generation, and low financial leverage. The income statement shows robust margins and revenue growth, while the balance sheet highlights low leverage risk. Cash flow metrics indicate effective cash management, though the equity ratio suggests room for improvement.

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
	EBIT
527.15M	349.48M	565.07M	501.79M	257.55M
	EBITDA
666.33M	1.01B	773.54M	691.13M	445.09M
	Net Income Common Stockholders
923.82M	693.40M	716.23M	605.39M	302.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.49B	7.37B	9.63B	4.98B	3.56B
	Total Assets
29.11B	23.49B	22.54B	16.22B	13.71B
	Total Debt
237.76M	262.44M	233.65M	226.35M	270.41M
	Net Debt
-1.37B	-1.20B	-3.75B	-3.80B	-2.43B
	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: Positive
• Last Price: 310.20
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 310.2 is above the 20-day moving average (MA) of 309.40, above the 50-day MA of 303.29, and above the 200-day MA of 225.16, indicating a neutral trend. The MACD of 3.07 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:AM.

Dassault Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AM	75 Outperform	€24.22B	26.27	15.30%	1.09%	29.86%	37.44%
AIR	74 Outperform	$126.83B	28.56	21.75%	1.19%	5.16%	12.89%
VIE	72 Outperform	€22.57B	19.93	13.14%	4.11%	-1.45%	14.74%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
MT	64 Neutral	€22.64B	17.42	2.57%	1.70%	-8.59%	68.13%
SAF	59 Neutral	€107.98B	62.44	-6.13%	0.86%	17.19%	-119.44%

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.