Sabaf Technology and Safety (SAB) AI Stock Analysis

• Market Cap: €162.15M
• Dividend Yield: 3.48%
• Average Volume (3M): 7.29K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.43
• Revenue Growth: 16.53%
• EPS Growth: -20.56%
• Country: IT
• Employees: 1,717
• Sector: Technology
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.33
• Shares Outstanding: 11,533,450
• 10 Day Avg. Volume: 5,531
• 30 Day Avg. Volume: 7,295
• PEG Ratio: -0.34
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.88
• 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: €21.00
• Price Target Upside: 45.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: €15.50 ▲(7.27%Upside)

Sabaf Technology and Safety has a solid financial performance with strong revenue growth and operational efficiency. Despite this, technical indicators are mixed, and the valuation suggests potential overvaluation. The overall score reflects a balance of these factors, with financial performance being the most significant driver.

Positive Factors

Market Share

Sabaf is continuing to take market share, growing sales high-single digit in a broadly stable market.

Order Intake

The beginning of 2025 is encouraging in terms of top-line and even more order intake and provides some initial support to almost €300mn sales for the FY.

Strategic Projects

SAB sees development of strategic projects supporting 2025 growth prospects, despite the current macro uncertainty.

Negative Factors

FX Headwinds

FX headwinds lead to trimmed revenues by -1% and EBITDA by -7%/-5% with a negative impact on the bottom line.

Labor Inflation

Higher volumes are not fully translating into better profitability due to labour inflation in Turkey and RM/energy costs.

Sales and Margins Decline

4Q24 results were still not brilliant, showing a sequential decline in sales and margins.

Sabaf Technology and Safety Business Overview & Revenue Model

Company Description

Sabaf Technology and Safety (SAB) is a leading company specializing in the design and manufacture of components for household appliances. The company operates primarily in the sectors of cooking appliances, with a core focus on producing gas burners, hinges, and other related components. SAB is recognized for its commitment to innovation, safety, and quality, providing essential parts that enhance the functionality and reliability of appliances worldwide.

How the Company Makes Money

SAB generates revenue primarily through the sale of its components to appliance manufacturers. The company's key revenue streams include the production and sale of gas burners, oven hinges, and other essential mechanical parts for cooking appliances. SAB's strong relationships with major appliance manufacturers and its emphasis on quality and innovation enable it to maintain a steady demand for its products. Additionally, its focus on safety and compliance with international standards enhances its appeal to global markets, contributing significantly to the company's earnings.

Sabaf Technology and Safety Financial Statement Overview

Summary

Sabaf Technology and Safety shows robust revenue growth and operational efficiency. While the income statement indicates a positive growth trajectory, net profitability needs enhancement. The balance sheet is stable but moderately leveraged, and cash flow management is crucial due to decreased 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	285.09M	237.95M	253.05M	263.26M	184.91M
Gross Profit	155.87M	80.45M	81.46M	134.66M	98.75M
EBITDA	39.34M	24.45M	32.53M	47.66M	32.87M
Net Income	6.93M	3.10M	15.25M	23.90M	13.96M
Balance Sheet
Total Assets	353.62M	358.18M	329.40M	316.41M	254.60M
Cash, Cash Equivalents and Short-Term Investments	33.38M	37.36M	20.92M	43.65M	13.32M
Total Debt	96.09M	104.86M	107.21M	110.91M	62.65M
Total Liabilities	179.88M	187.79M	173.24M	193.97M	136.79M
Stockholders Equity	165.80M	162.09M	156.16M	121.53M	113.00M
Cash Flow
Free Cash Flow	11.87M	20.34M	21.14M	-1.69M	7.35M
Operating Cash Flow	27.03M	39.85M	24.29M	23.22M	25.07M
Investing Cash Flow	-14.71M	-16.94M	-20.86M	-23.75M	-17.30M
Financing Cash Flow	-16.77M	-14.67M	-16.89M	41.23M	-8.13M

Sabaf Technology and Safety Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 14.45 is below the 20-day moving average (MA) of 14.65, below the 50-day MA of 14.49, and below the 200-day MA of 15.14, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 is Neutral, 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 *	66 Neutral	€2.82B	14.59	3.54%	2.81%	6.71%	-64.23%
SAB	64 Neutral	€162.15M	27.95	3.89%	3.48%	16.53%	-20.56%
TES	58 Neutral	€31.95M	―	1.52%	―	-4.80%	-237.04%
BSS	56 Neutral	€203.33M	54.24	1.43%	0.47%	-3.86%	-69.97%