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SAFRAN SA (FR:SAF)
:SAF
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SAFRAN SA (SAF) AI Stock Analysis

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FR:SAF

SAFRAN SA

(LSE:SAF)

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

SAFRAN SA Business Overview & Revenue Model

Company DescriptionSafran 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 MoneySafran 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
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 Price275.50
Price Trends
50DMA
265.53
Positive
100DMA
250.35
Positive
200DMA
235.20
Positive
Market Momentum
MACD
5.36
Positive
RSI
53.56
Neutral
STOCH
56.34
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€143.52B32.3221.75%0.01%5.16%12.89%
74
Outperform
€50.10B48.3414.05%1.52%11.66%3.13%
72
Outperform
€1.72B30.755.80%1.03%10.03%48.93%
70
Outperform
€116.11B62.44-6.13%1.04%17.19%-119.44%
67
Neutral
€22.35B28.6212.93%1.65%29.91%-2.20%
65
Neutral
$10.91B15.535.25%2.19%3.15%-27.00%
48
Neutral
€480.60M-5.47%11.67%31.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:SAF
SAFRAN SA
278.60
81.33
41.22%
FR:AIR
Airbus Group SE
183.38
57.26
45.40%
FR:FII
Lisi SA
37.40
14.53
63.53%
FR:HO
Thales
238.00
97.51
69.40%
FR:AM
Dassault Aviation
262.00
89.47
51.85%
FR:FGA
Figeac Aero SA
10.75
4.85
82.20%

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