Sabaf Technology and Safety (SAB) AI Stock Analysis

• Market Cap: €157.10M
• Dividend Yield: 4.22%
• Average Volume (3M): 9.85K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.37
• Revenue Growth: 3.13%
• EPS Growth: -57.84%
• Country: IT
• Employees: 1,717
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 0.17
• Shares Outstanding: 11,533,450
• 10 Day Avg. Volume: 4,930
• 30 Day Avg. Volume: 9,852
• 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: €19.00
• Price Target Upside: 40.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €14.00 ▲(3.32% Upside)

Sabaf Technology and Safety's overall stock score is primarily influenced by its stable financial position and strong dividend yield. However, the high P/E ratio and bearish technical indicators suggest potential overvaluation and negative market sentiment. The company needs to address profitability and cash flow issues to improve its financial performance.

Positive Factors

Strong Gross Margins

High gross margins indicate efficient production processes and pricing power, supporting profitability and competitive positioning over time.

Balanced Debt Profile

A balanced debt profile provides financial stability and flexibility, enabling the company to invest in growth opportunities without excessive risk.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and adapt to evolving industry demands, supporting long-term sustainability.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies or high costs, which could hinder profitability and limit reinvestment capabilities.

Cash Flow Challenges

Declining free cash flow raises concerns about the company's ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Low Return on Equity

Low ROE suggests inefficient use of equity capital, which may limit shareholder value creation and indicate operational inefficiencies.

Sabaf Technology and Safety Business Overview & Revenue Model

Company Description

Sabaf Technology and Safety (SAB) is a leading provider of innovative technology solutions and safety products, specializing in sectors such as industrial safety, personal protective equipment (PPE), and advanced safety systems. The company focuses on delivering high-quality products designed to enhance workplace safety and efficiency, including safety goggles, helmets, and advanced monitoring systems. SAB is committed to meeting the evolving needs of various industries by integrating cutting-edge technology with robust safety standards.

How the Company Makes Money

Sabaf Technology and Safety generates revenue through multiple key streams, primarily by selling its safety products and solutions to businesses across various sectors. The company earns income from direct sales of its PPE and safety equipment, which are often marketed to industrial clients, construction companies, and healthcare facilities. Additionally, SAB offers consulting services aimed at improving workplace safety protocols, contributing further to its revenue. Strategic partnerships with manufacturers and distributors enhance its market reach, allowing SAB to tap into new customer bases and expand its product offerings. Moreover, the company may also benefit from government contracts or grants aimed at improving workplace safety standards, adding to its overall earnings.

Sabaf Technology and Safety Financial Statement Overview

Summary

Sabaf Technology and Safety demonstrates a stable financial position with strong gross margins and a balanced debt profile. However, profitability metrics such as net profit margin and return on equity are low, indicating potential inefficiencies. Cash flow challenges, particularly in free cash flow generation, highlight the need for improved cash management strategies.

Income Statement

Sabaf Technology and Safety shows a moderate revenue growth rate of 3.7% in the TTM, recovering from a decline in previous years. Gross profit margin is strong at 58.75%, indicating efficient production. However, the net profit margin is low at 1.34%, suggesting high expenses or inefficiencies. EBIT and EBITDA margins are relatively stable but lower than industry leaders, indicating room for operational improvement.

Balance Sheet

The company's debt-to-equity ratio of 0.68 in the TTM suggests a balanced leverage position, which is a positive sign of financial stability. Return on equity is low at 2.38%, indicating limited profitability from equity investments. The equity ratio of 43.7% reflects a solid capital structure, providing a buffer against financial volatility.

Cash Flow

Operating cash flow to net income ratio is 0.29, indicating that cash generation is not fully aligned with reported earnings. Free cash flow has decreased by 21.7% in the TTM, raising concerns about cash availability for reinvestment. The free cash flow to net income ratio of 0.30 suggests moderate cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	283.52M	285.09M	237.95M	253.05M	263.26M	184.91M
Gross Profit	145.08M	155.87M	80.45M	81.46M	134.66M	98.75M
EBITDA	39.58M	39.34M	23.73M	32.53M	47.66M	32.87M
Net Income	4.75M	6.93M	3.10M	15.25M	23.90M	13.96M
Balance Sheet
Total Assets	344.86M	353.62M	358.18M	329.40M	316.41M	254.60M
Cash, Cash Equivalents and Short-Term Investments	26.83M	33.38M	43.61M	22.63M	44.82M	13.32M
Total Debt	96.56M	96.09M	104.86M	107.21M	110.91M	62.65M
Total Liabilities	186.23M	179.88M	187.79M	173.24M	193.97M	136.79M
Stockholders Equity	150.71M	165.80M	162.09M	156.16M	121.53M	113.00M
Cash Flow
Free Cash Flow	7.84M	11.87M	20.34M	21.14M	-1.69M	7.35M
Operating Cash Flow	30.85M	27.03M	39.85M	24.29M	23.22M	25.07M
Investing Cash Flow	-19.98M	-14.71M	-16.94M	-20.86M	-23.75M	-17.30M
Financing Cash Flow	-10.60M	-16.77M	-14.67M	-16.89M	41.23M	-8.13M

Sabaf Technology and Safety Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.55
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 13.55 is below the 20-day moving average (MA) of 14.04, below the 50-day MA of 13.88, and below the 200-day MA of 14.14, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€157.10M	37.32	3.03%	4.22%	3.13%	-57.84%
BSS	56 Neutral	€192.64M	-26.78	-2.86%	0.57%	-10.59%	-132.80%
TES	54 Neutral	€104.70M	-170.00	6.78%	―	-1.90%	91.60%
SIT	52 Neutral	€71.65M	-3.26	―	―	―	―
FDA	41 Neutral	€3.72M	-0.03	-51.46%	―	-27.40%	82.08%