SAFRAN SA (SAF) AI Stock Analysis

• Market Cap: €113.44B
• Dividend Yield: 0.93%
• Average Volume (3M): 525.38K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 1.07
• Revenue Growth: 17.19%
• EPS Growth: -119.44%
• Country: FR
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 86
• Industry: Aerospace & Defense
• EPS (TTM): 3.89
• Shares Outstanding: 423,632,600
• 10 Day Avg. Volume: 508,837
• 30 Day Avg. Volume: 525,384
• PEG Ratio: <0.01
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.92
• 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: €268.60
• Price Target Upside: -2.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: €292.00 ▲(5.84%Upside)

SAFRAN SA's stock score is primarily influenced by strong financial performance in terms of revenue growth and cash flow generation. However, the stock's valuation is a concern due to negative earnings, reflected in a high P/E ratio. Technical analysis shows strong upward momentum, albeit with potential overbought conditions.

Positive Factors

Financial Health

Safran's Q4 margin is seen as a positive, indicating strong financial health.

Free Cash Flow

Free cash flow performance was strong, which is a positive indicator for the stock.

Sales Performance

Sales beat expectations by 3%, reaching €7.26bn.

Negative Factors

Guidance Concerns

Lack of guidance upgrade despite strong sales performance is not supportive for the shares.

Product Deliveries

Original Equipment deliveries, such as LEAP engines, are expected to remain lower year over year.

Tariff Concerns

Tariffs and their impact on the supply chain are highlighted as key concerns.

SAFRAN SA Business Overview & Revenue Model

Company Description

Safran SA is a leading international high-technology group operating in the aviation, defense, and space sectors. Headquartered in Paris, France, the company designs, manufactures, and supports a wide range of products and systems, including aircraft engines, rocket engines, aerospace propulsion systems, and aircraft equipment. Safran is a key player in the global aerospace market, providing cutting-edge solutions to both commercial and military customers worldwide.

How the Company Makes Money

Safran SA generates revenue through the development, production, and sale of aerospace propulsion systems, aircraft equipment, and defense systems. The company's primary revenue streams include the sale of aircraft engines and related services, which encompass maintenance, repair, and overhaul (MRO) services for commercial and military aircraft. Safran collaborates with major aircraft manufacturers such as Boeing and Airbus, supplying engines and equipment for a wide range of commercial aircraft. Additionally, the company earns revenue from its defense segment by providing military avionics, optronics, and tactical drones. Strategic partnerships and joint ventures, such as the CFM International joint venture with GE Aviation for the production of the CFM56 and LEAP engines, significantly contribute to Safran's earnings, bolstering its position in the competitive aerospace market.

SAFRAN SA Financial Statement Overview

Summary

SAFRAN SA has demonstrated significant revenue growth and strong cash flow generation. However, net losses have impacted profitability metrics, resulting in a mixed view of financial health. The balance sheet shows reduced leverage, and cash flow metrics highlight strong operational cash flow despite net losses.

Income Statement

SAFRAN SA has shown a strong recovery in revenue with a Revenue Growth Rate of 17.2% from 2023 to 2024. However, the company reported a negative Net Profit Margin of -2.4% for 2024 due to a significant net income loss. The Gross Profit Margin was healthy at 48.5%, and the EBIT and EBITDA margins were robust at 15.1% and 19.2%, respectively. Overall, while revenue and earnings before tax are strong, the net profit loss impacts the stability of the income statement.

Balance Sheet

The company's Debt-to-Equity Ratio decreased slightly to 0.50 in 2024, indicating improved leverage. The Return on Equity was negative at -6.6% due to net losses, while the Equity Ratio stood at 18.5%, showing a moderate equity position relative to total assets. The balance sheet shows a stable asset base with reduced debt, providing a mixed view of financial health.

Cash Flow

SAFRAN SA's Free Cash Flow grew by 7.3% from 2023 to 2024, reflecting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is high due to the negative net income. The Free Cash Flow to Net Income Ratio is also distorted by net losses, but strong cash flow generation provides a solid financial footing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.72B	23.65B	19.52B	15.13B	16.63B
Gross Profit	13.27B	11.21B	2.19B	980.00M	1.08B
EBITDA	5.32B	4.41B	-2.03B	1.55B	1.90B
Net Income	-667.00M	3.44B	-2.46B	43.00M	352.00M
Balance Sheet
Total Assets	55.01B	50.47B	46.83B	41.72B	39.53B
Cash, Cash Equivalents and Short-Term Investments	6.76B	6.68B	6.69B	5.25B	3.75B
Total Debt	5.06B	6.58B	6.95B	7.13B	7.01B
Total Liabilities	44.29B	38.38B	35.96B	28.45B	26.78B
Stockholders Equity	10.18B	11.58B	10.41B	12.84B	12.35B
Cash Flow
Free Cash Flow	3.69B	3.44B	2.95B	2.00B	1.34B
Operating Cash Flow	4.73B	4.27B	3.54B	2.44B	1.87B
Investing Cash Flow	-1.85B	-1.70B	-1.29B	-738.00M	-799.00M
Financing Cash Flow	-3.07B	-2.58B	-815.00M	-268.00M	68.00M

SAFRAN SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 275.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SAF, the sentiment is Positive. The current price of 275.9 is above the 20-day moving average (MA) of 262.90, above the 50-day MA of 252.60, and above the 200-day MA of 229.93, indicating a bullish trend. The MACD of 4.11 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 77.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SAF.

SAFRAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	75 Outperform	$141.05B	31.76	21.75%	1.63%	5.16%	12.89%
FII	72 Outperform	€1.65B	29.45	5.80%	0.90%	10.03%	48.93%
SAF	70 Outperform	€113.44B	62.44	-6.13%	0.93%	17.19%	-119.44%
HO	69 Neutral	€50.52B	48.73	14.05%	1.97%	11.66%	3.13%
AM	67 Neutral	€23.32B	25.36	15.30%	1.58%	29.86%	37.44%
Sector *	65 Neutral	$10.56B	15.51	5.57%	1.96%	2.71%	-26.32%
FGA	48 Neutral	€496.03M	―	-5.47%	―	11.67%	31.93%

SAFRAN SA Corporate Events

Safran SA Completes Strategic Share Repurchase Program

Safran SA conducted a series of share repurchases between March 10 and March 14, 2025, totaling 32,667 shares at an average price of €241.6840, amounting to approximately €7.9 million. These transactions, executed by Citigroup Global Markets Europe AG under a discretionary mandate, are part of Safran’s strategic financial management, potentially impacting its market positioning and shareholder value.