SAFRAN SA (SAF) AI Stock Analysis

• Market Cap: €121.94B
• Dividend Yield: 0.99%
• Average Volume (3M): 431.05K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.01
• Revenue Growth: 14.19%
• EPS Growth: 161.87%
• Country: FR
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.80
• Shares Outstanding: 423,632,600
• 10 Day Avg. Volume: 494,197
• 30 Day Avg. Volume: 431,046
• PEG Ratio: 1.11
• Price to Book (P/B): 8.67
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 23.93
• 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: €325.70
• Price Target Upside: 10.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: €304.00 ▲(2.70% Upside)

SAFRAN SA's overall stock score is driven primarily by its strong financial performance, particularly in revenue growth and cash flow generation. However, the company's profitability challenges and relatively high valuation weigh on the score. Technical indicators suggest a neutral market sentiment, further contributing to a moderate overall score.

Positive Factors

Negative Factors

SAFRAN SA Business Overview & Revenue Model

Company Description

SAFRAN SA (SAF) is a French multinational aerospace and defense company specializing in the design and production of aircraft engines, propulsion systems, and aerospace components. The company operates in several sectors, including civil and military aviation, space, and defense, providing advanced technologies and innovative solutions. Key products include aircraft engines for commercial and military aircraft, landing gear, and various aerospace systems.

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, but net losses have impacted profitability metrics. The balance sheet shows reduced leverage and stable assets, while cash flow metrics highlight strong operational cash flow despite net losses. Overall, the company's financials are improving, but profitability remains a key challenge.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.29B	27.72B	23.65B	19.52B	15.13B	16.63B
Gross Profit	9.80B	13.27B	11.21B	2.19B	980.00M	1.08B
EBITDA	2.71B	5.32B	4.41B	-2.03B	1.55B	1.90B
Net Income	4.32B	-667.00M	3.44B	-2.46B	43.00M	352.00M
Balance Sheet
Total Assets	56.09B	55.01B	50.47B	46.83B	41.72B	39.53B
Cash, Cash Equivalents and Short-Term Investments	6.99B	6.76B	6.68B	6.69B	5.25B	3.75B
Total Debt	5.12B	5.06B	6.58B	6.95B	7.13B	7.01B
Total Liabilities	42.31B	44.29B	38.38B	35.96B	28.45B	26.78B
Stockholders Equity	13.22B	10.18B	11.58B	10.41B	12.84B	12.35B
Cash Flow
Free Cash Flow	4.08B	3.69B	3.44B	2.95B	2.00B	1.34B
Operating Cash Flow	5.13B	4.73B	4.27B	3.54B	2.44B	1.87B
Investing Cash Flow	-1.87B	-1.85B	-1.70B	-1.29B	-738.00M	-799.00M
Financing Cash Flow	-2.21B	-3.07B	-2.58B	-815.00M	-268.00M	68.00M

SAFRAN SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 296.00
• 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 296 is above the 20-day moving average (MA) of 285.05, above the 50-day MA of 285.98, and above the 200-day MA of 252.64, indicating a bullish trend. The MACD of 1.87 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 65.62 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	76 Outperform	154.91B	31.04	21.39%	1.54%	5.12%	59.43%
HO	73 Outperform	53.29B	77.10	18.89%	1.43%	11.16%	-50.57%
AM	73 Outperform	22.00B	28.63	14.59%	1.67%	29.91%	-2.24%
FII	72 Outperform	2.09B	33.40	―	0.85%	9.17%	12.78%
SAF	67 Neutral	€121.94B	28.31	35.36%	0.99%	14.19%	161.87%
FGA	48 Neutral	502.85M	131.43	―	―	8.85%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.