Sabaf Technology and Safety (SAB) AI Stock Analysis

• Market Cap: €158.23M
• Dividend Yield: 4.14%
• Average Volume (3M): 10.99K
• Price to Earnings (P/E): 46.1
• Beta (1Y): 0.39
• Revenue Growth: 3.56%
• EPS Growth: -70.43%
• Country: IT
• Employees: 1,717
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 0.12
• Shares Outstanding: 11,533,450
• 10 Day Avg. Volume: 13,679
• 30 Day Avg. Volume: 10,992
• PEG Ratio: 0.23
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 15.97
• 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: €20.00
• Price Target Upside: 42.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: €15.00 ▲(7.14% Upside)

The overall stock score of 60 reflects a mixed outlook. Financial performance is hindered by declining revenue and cash flow challenges. Technical indicators suggest a neutral trend, and valuation metrics indicate potential overvaluation despite a decent dividend yield.

Positive Factors

Negative Factors

Sabaf Technology and Safety Business Overview & Revenue Model

Company Description

Sabaf S.p.A. designs, manufactures, and sells components for household cooking appliances. It operates through Gas Parts, Hinges, and Electronic Components segments. The company offers taps with or without a flame failure device that are used in free-standing cookers or in built-in hobs; thermostats with or without a flame failure device used in free-standing cookers and built-in ovens; valves; and burners, as well as gas burners for ovens and grills. It also provides hinges for built-in ovens, free-standing cookers, washing machines, dishwashers, and microwave ovens; electronic controls for ovens, hoods, hobs, vacuum cleaners, refrigerators, and freezers; electronic control boards, timers, display, and power supply units for ovens, kitchen hoods, vacuum cleaners, refrigerators, and freezers; and a range of accessories, including electrodes, micro switch harnesses, injectors, spark plugs, micro switches, fittings and plugs, thermocouples, and screws and brackets. The company offers its products to customers in Europe, Turkey, North America, South America, the Middle East, Africa, Asia, and Oceania. Sabaf S.p.A. was founded in 1950 and is headquartered in Ospitaletto, Italy.

How the Company Makes Money

Sabaf Technology and Safety generates revenue through multiple streams, including the sale of safety equipment and systems, consultancy services for industrial safety assessments, and ongoing maintenance contracts for installed systems. The company also benefits from partnerships with key players in the technology and safety sectors, allowing for collaborative projects that enhance service offerings. Additionally, SAB capitalizes on training programs that educate clients on best practices for safety systems, which further solidifies customer relationships and generates recurring income. The combination of product sales, service agreements, and strategic collaborations provides a diversified revenue model that supports the company's financial growth.

Sabaf Technology and Safety Financial Statement Overview

Summary

Sabaf Technology and Safety shows solid revenue growth and operational efficiency. The income statement indicates a positive growth trajectory, though net profitability needs improvement. The balance sheet is stable but has moderate leverage, and cash flow management is crucial due to a decline in free cash flow.

Income Statement

Sabaf Technology and Safety has shown solid revenue growth over the years, with a notable increase from 2023 to 2024. The Gross Profit Margin is healthy, indicating efficient production and cost management. The Net Profit Margin improved over the previous year, although it remains relatively low. EBIT and EBITDA margins are respectable, demonstrating good operational efficiency. Overall, the income statement presents a positive growth trajectory with room for improving net profitability.

Balance Sheet

The company's Debt-to-Equity Ratio indicates moderate leverage, which is manageable but could pose risks if not monitored. The Return on Equity (ROE) has shown improvement, highlighting effective use of equity in generating profits. The Equity Ratio is stable, reflecting a balanced asset structure. The balance sheet reveals a stable financial position with a focus on maintaining leverage at sustainable levels.

Cash Flow

Sabaf Technology and Safety's cash flow statement shows a decline in free cash flow from the previous year, primarily due to increased capital expenditures. Operating Cash Flow remains strong, providing a solid basis for operations and investments. The Free Cash Flow to Net Income Ratio is positive, indicating the company's ability to convert earnings into free cash flow, although the recent decrease suggests a need for closer management of capital investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	283.41M	285.09M	237.95M	253.05M	263.26M	184.91M
Gross Profit	166.50M	155.87M	80.45M	81.46M	134.66M	98.75M
EBITDA	36.96M	39.34M	24.45M	32.53M	47.66M	32.87M
Net Income	3.80M	6.93M	3.10M	15.25M	23.90M	13.96M
Balance Sheet
Total Assets	354.09M	353.62M	358.18M	329.40M	316.41M	254.60M
Cash, Cash Equivalents and Short-Term Investments	35.33M	33.38M	43.61M	22.63M	44.82M	13.32M
Total Debt	114.74M	96.09M	104.86M	107.21M	110.91M	62.65M
Total Liabilities	197.96M	179.88M	187.79M	173.24M	193.97M	136.79M
Stockholders Equity	148.60M	165.80M	162.09M	156.16M	121.53M	113.00M
Cash Flow
Free Cash Flow	10.02M	11.87M	20.34M	21.14M	-1.69M	7.35M
Operating Cash Flow	33.03M	27.03M	39.85M	24.29M	23.22M	25.07M
Investing Cash Flow	-20.68M	-14.71M	-16.94M	-20.86M	-23.75M	-17.30M
Financing Cash Flow	-1.04M	-16.77M	-14.67M	-16.89M	41.23M	-8.13M

Sabaf Technology and Safety Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SAB, the sentiment is Negative. The current price of 14 is below the 20-day moving average (MA) of 14.09, below the 50-day MA of 14.08, and below the 200-day MA of 14.27, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 86.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:SAB.

Sabaf Technology and Safety Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAB	60 Neutral	€158.23M	46.11	2.42%	4.14%	3.56%	-70.43%
BSS	55 Neutral	€225.80M	52.34	-2.86%	0.48%	-10.59%	-132.80%
TES	53 Neutral	€70.89M	―	3.93%	―	-2.77%	2.22%
FDA	38 Underperform	€1.83M	―	-51.46%	―	-27.40%	82.08%