Sabaf Technology and Safety (SAB) AI Stock Analysis

• Market Cap: €157.10M
• Dividend Yield: 4.3%
• Average Volume (3M): 9.85K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 0.39
• 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: 40.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €14.50 ▲(7.41% Upside)

Sabaf Technology and Safety's overall stock score reflects a mixed financial performance with strong gross margins but challenges in revenue growth and cash flow. Technical analysis indicates a neutral to slightly bearish trend, and the high P/E ratio suggests potential overvaluation. The dividend yield offers some compensation for investors.

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 a mixed financial performance. Strong gross profit margins and a stable balance sheet are positive, but declining revenue growth and profitability margins, along with cash flow challenges, are concerning.

Income Statement

Sabaf Technology and Safety's income statement shows a mixed performance. The company has a strong gross profit margin of 58.75% in the TTM, indicating efficient production and cost management. However, the net profit margin has decreased to 1.34%, reflecting challenges in converting revenue into profit. Revenue growth is negative at -2.23%, suggesting a decline in sales compared to the previous period. The EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.77, which is manageable and indicates moderate leverage. The return on equity is low at 2.38%, suggesting limited profitability from shareholders' investments. The equity ratio stands at 41.97%, showing a solid equity base relative to total assets, which provides financial stability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth at -54.85%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.29, suggesting that operating cash flows are not fully covering net income. The free cash flow to net income ratio is 0.30, which shows limited cash generation relative to net income.

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	23.73M	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: 13.50
• 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 13.5 is below the 20-day moving average (MA) of 13.81, below the 50-day MA of 13.93, and below the 200-day MA of 14.18, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.69 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAB	57 Neutral	€157.10M	45.78	3.03%	4.30%	3.13%	-57.84%
TES	53 Neutral	€67.52M	―	6.78%	―	-1.90%	91.60%
BSS	50 Neutral	€152.91M	-21.19	-2.86%	0.70%	-10.59%	-132.80%
FDA	38 Underperform	€4.17M	-0.06	-51.46%	―	-27.40%	82.08%