SAFRAN SA (SAF) AI Stock Analysis

• Market Cap: €119.69B
• Dividend Yield: 1%
• Average Volume (3M): 481.51K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.04
• Revenue Growth: 14.19%
• EPS Growth: 161.87%
• Country: FR
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 85
• Industry: Aerospace & Defense
• EPS (TTM): 3.80
• Shares Outstanding: 423,632,600
• 10 Day Avg. Volume: 535,448
• 30 Day Avg. Volume: 481,508
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €300.15
• Price Target Upside: 3.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 70 Outperform
• Price Target: €292.00 ▲(0.48% 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

Earnings

A stronger margin in Propulsion drives a 5% beat in H1 EBIT.

Financial Performance

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

Negative Factors

Guidance

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

Supply Chain

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

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 generates revenue primarily through the sale of aircraft engines and aerospace components to major aircraft manufacturers and airlines. Its revenue model is diversified across several key streams, including the sale of new engines, maintenance, repair, and overhaul (MRO) services, and the production of equipment for both civil and military applications. Significant partnerships with leading aerospace companies, such as Boeing and Airbus, enhance its market position and contribute to steady revenue growth. Additionally, SAFRAN benefits from long-term contracts and agreements, ensuring a consistent income from its MRO services and spare parts supply, which are crucial for sustaining its earnings.

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: 290.60
• 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 290.6 is above the 20-day moving average (MA) of 283.83, above the 50-day MA of 273.73, and above the 200-day MA of 241.03, indicating a bullish trend. The MACD of 4.77 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.60 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
SAF	70 Outperform	€119.69B	27.79	35.36%	1.00%	14.19%	161.87%
Sector *	66 Neutral	€10.82B	25.80	6.80%	2.53%	4.15%	-29.59%
EADSF	―	$161.68B	30.24	23.80%	1.61%	―	―
0IAX	―	€21.24B	27.21	12.93%	―	―	―
0EKE	―	€2.11B	33.44	6.49%	―	―	―
0IW5	―	€47.43B	69.41	14.51%	2.33%	―	―
1F1	―	€439.28M	113.60	5.48%	―	―	―

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.