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SAFRAN SA (FR:SAF)
:SAF

SAFRAN SA (SAF) AI Stock Analysis

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SAFRAN SA

(LSE:SAF)

Rating:70Outperform
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 (SAF) vs. iShares MSCI France ETF (EWQ)

SAFRAN SA Business Overview & Revenue Model

Company DescriptionSafran 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 MoneySafran 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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.72B23.65B19.52B15.13B16.63B
Gross Profit13.27B11.21B2.19B980.00M1.08B
EBITDA5.32B4.41B-2.03B1.55B1.90B
Net Income-667.00M3.44B-2.46B43.00M352.00M
Balance Sheet
Total Assets55.01B50.47B46.83B41.72B39.53B
Cash, Cash Equivalents and Short-Term Investments6.76B6.68B6.69B5.25B3.75B
Total Debt5.06B6.58B6.95B7.13B7.01B
Total Liabilities44.29B38.38B35.96B28.45B26.78B
Stockholders Equity10.18B11.58B10.41B12.84B12.35B
Cash Flow
Free Cash Flow3.69B3.44B2.95B2.00B1.34B
Operating Cash Flow4.73B4.27B3.54B2.44B1.87B
Investing Cash Flow-1.85B-1.70B-1.29B-738.00M-799.00M
Financing Cash Flow-3.07B-2.58B-815.00M-268.00M68.00M

SAFRAN SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price275.90
Price Trends
50DMA
252.60
Positive
100DMA
245.40
Positive
200DMA
229.93
Positive
Market Momentum
MACD
4.11
Negative
RSI
54.71
Neutral
STOCH
77.26
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRAIR
75
Outperform
$141.05B31.7621.75%1.63%5.16%12.89%
FRFII
72
Outperform
€1.65B29.455.80%0.90%10.03%48.93%
FRSAF
70
Outperform
€113.44B62.44-6.13%0.93%17.19%-119.44%
FRHO
69
Neutral
€50.52B48.7314.05%1.97%11.66%3.13%
FRAM
67
Neutral
€23.32B25.3615.30%1.58%29.86%37.44%
65
Neutral
$10.56B15.515.57%1.96%2.71%-26.32%
FRFGA
48
Neutral
€496.03M-5.47%11.67%31.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:SAF
SAFRAN SA
264.90
63.97
31.83%
FR:AIR
Airbus Group SE
172.32
39.47
29.71%
FR:FII
Lisi SA
36.20
11.95
49.28%
FR:HO
Thales
236.30
83.87
55.02%
FR:AM
Dassault Aviation
291.00
124.18
74.44%
FR:FGA
Figeac Aero SA
11.70
5.74
96.31%

SAFRAN SA Corporate Events

Safran SA Completes Strategic Share Repurchase Program
Mar 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025