Sabaf Technology and Safety (SAB) AI Stock Analysis

• Market Cap: €159.35M
• Dividend Yield: 4.08%
• Average Volume (3M): 4.99K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.39
• Revenue Growth: 16.53%
• EPS Growth: -20.56%
• Country: IT
• Employees: 1,717
• Sector: Technology
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 0.30
• Shares Outstanding: 11,533,450
• 10 Day Avg. Volume: 5,226
• 30 Day Avg. Volume: 4,987
• PEG Ratio: -2.31
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.76
• 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: 47.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: €16.00 ▲(12.68%Upside)

Sabaf Technology and Safety's overall stock score reflects solid financial performance and stable technical indicators. While the company's revenue growth and operational efficiency are strong, the stock's relatively high valuation and the recent decline in free cash flow suggest areas for cautious monitoring. The dividend yield offers some compensation for the valuation concerns. The absence of recent earnings call data and corporate events means the analysis primarily hinges on financial results and technical indicators.

Positive Factors

Market Share Growth

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

Strategic Projects

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

Negative Factors

FX and Revenue Impact

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

Profitability Challenges

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 manufacturing and supply of high-quality components for household appliances. Operating primarily within the home appliance sector, SAB focuses on producing technologically advanced and safety-oriented products such as gas burners, valves, and electronic controls. The company's innovative solutions are designed to enhance the efficiency and safety of appliances, making it a preferred partner for appliance manufacturers worldwide.

How the Company Makes Money

SAB generates revenue through the sale of its components to appliance manufacturers globally. The company's primary revenue streams include the production and distribution of gas burners, valves, and electronic controls, which are integral parts of various household appliances. SAB's products are often sold through long-term contracts with major appliance manufacturers, ensuring a steady revenue flow. Additionally, the company may engage in strategic partnerships and collaborations with other firms to enhance its product offerings and expand its market reach. SAB's focus on innovation and safety also enables it to maintain a competitive edge in the market, contributing to its financial success.

Sabaf Technology and Safety Financial Statement Overview

Summary

Sabaf Technology and Safety demonstrates robust growth in revenue and operational efficiency, as seen in its income statement. The balance sheet highlights a stable financial foundation despite moderate leverage. Cash flow management remains crucial, given the recent decline in free cash flow. Overall, the company is on a positive trajectory but should focus on enhancing net profitability and managing capital expenditures effectively.

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: 14.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.2 is below the 20-day moving average (MA) of 14.47, below the 50-day MA of 14.63, and below the 200-day MA of 14.86, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.30 is Positive, 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
SAB	67 Neutral	€159.35M	27.37	3.89%	4.08%	16.53%	-20.56%
Sector *	65 Neutral	€2.61B	15.76	3.57%	2.92%	6.85%	-65.16%
BSS	60 Neutral	€213.47M	56.94	1.43%	0.51%	-3.86%	-69.97%
TES	59 Neutral	€39.72M	―	1.52%	―	-4.80%	-237.04%
FDA	38 Underperform	€2.48M	―	-301.74%	―	-38.87%	-89.45%