SAFRAN SA (SAF) AI Stock Analysis

• Market Cap: €116.11B
• Dividend Yield: 1.04%
• Average Volume (3M): 509.61K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 1.09
• Revenue Growth: 17.19%
• EPS Growth: -119.44%
• Country: FR
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 3.89
• Shares Outstanding: 423,632,600
• 10 Day Avg. Volume: 467,556
• 30 Day Avg. Volume: 509,605
• 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: €282.79
• Price Target Upside: 2.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: €292.00 ▲(5.99%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

Aftermarket Growth

Strong aftermarket growth in Propulsion is expected to drive a guide increase at Safran.

Earnings Growth

There is an anticipated 21% growth in earnings before interest and taxes due to expanding margins in the propulsion and interiors sectors.

Financial Performance

Free cash flow is expected to be €1.7 billion, indicating strong financial health and operational efficiency.

Negative Factors

Guidance Concerns

The guidance still excludes tariffs impact, which is a concern for investors.

Original Equipment Deliveries

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

Return on Investment

Safran H2 ROI came in slightly below expectations.

SAFRAN SA Business Overview & Revenue Model

Company Description

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, and drones. This segment also offers maintenance, repair, and overhaul services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; and engine systems and equipment, such as thrust reversers and nacelles. This segment also offers avionics, such as flight controls and onboard information systems; security systems, including evacuation slides, emergency arresting systems, and oxygen masks; onboard computers and fuel systems; electrical power management systems and associated engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as sells spare parts. Its products and services are used in civil and military aircraft, and helicopters. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Safran SA was incorporated in 1924 and is headquartered in Paris, France.

How the Company Makes Money

Safran SA generates revenue through a diversified business model primarily based on the sale of aircraft engines and related services. The company earns money from the production and sale of commercial and military aircraft engines, which are used by major global airlines and air forces. Additionally, Safran provides maintenance, repair, and overhaul (MRO) services, which form a significant part of its revenue stream. The company also derives income from selling aerospace equipment such as landing gear and nacelles. Strategic partnerships and joint ventures with leading aerospace companies, such as GE Aviation, enhance its earnings by expanding its product offerings and market reach. Safran's focus on research and development further supports revenue growth by enabling the company to introduce innovative products and solutions in the highly 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: 275.50
• 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:SAF, the sentiment is Positive. The current price of 275.5 is above the 20-day moving average (MA) of 275.19, above the 50-day MA of 265.53, and above the 200-day MA of 235.20, indicating a bullish trend. The MACD of 5.36 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 56.34 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	€143.52B	32.32	21.75%	0.01%	5.16%	12.89%
HO	74 Outperform	€50.10B	48.34	14.05%	1.52%	11.66%	3.13%
FII	72 Outperform	€1.72B	30.75	5.80%	1.03%	10.03%	48.93%
SAF	70 Outperform	€116.11B	62.44	-6.13%	1.04%	17.19%	-119.44%
AM	67 Neutral	€22.35B	28.62	12.93%	1.65%	29.91%	-2.20%
Sector *	65 Neutral	$10.91B	15.53	5.25%	2.19%	3.15%	-27.00%
FGA	48 Neutral	€480.60M	―	-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.