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Sabaf Technology and Safety (IT:SAB)
:SAB

Sabaf Technology and Safety (SAB) AI Stock Analysis

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IT

Sabaf Technology and Safety

(LSE:SAB)

Rating:64Neutral
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 (SAB) vs. iShares MSCI Italy ETF (EWI)

Sabaf Technology and Safety Business Overview & Revenue Model

Company DescriptionSabaf 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 MoneySAB 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
75
Positive
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
68
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue285.09M237.95M253.05M263.26M184.91M
Gross Profit155.87M80.45M81.46M134.66M98.75M
EBITDA39.34M24.45M32.53M47.66M32.87M
Net Income6.93M3.10M15.25M23.90M13.96M
Balance Sheet
Total Assets353.62M358.18M329.40M316.41M254.60M
Cash, Cash Equivalents and Short-Term Investments33.38M37.36M20.92M43.65M13.32M
Total Debt96.09M104.86M107.21M110.91M62.65M
Total Liabilities179.88M187.79M173.24M193.97M136.79M
Stockholders Equity165.80M162.09M156.16M121.53M113.00M
Cash Flow
Free Cash Flow11.87M20.34M21.14M-1.69M7.35M
Operating Cash Flow27.03M39.85M24.29M23.22M25.07M
Investing Cash Flow-14.71M-16.94M-20.86M-23.75M-17.30M
Financing Cash Flow-16.77M-14.67M-16.89M41.23M-8.13M

Sabaf Technology and Safety Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.45
Price Trends
50DMA
14.49
Negative
100DMA
14.29
Positive
200DMA
15.14
Negative
Market Momentum
MACD
<0.01
Positive
RSI
46.14
Neutral
STOCH
27.45
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
€2.82B14.593.54%2.81%6.71%-64.23%
ITSAB
64
Neutral
€162.15M27.953.89%3.48%16.53%-20.56%
ITTES
58
Neutral
€31.95M1.52%-4.80%-237.04%
ITBSS
56
Neutral
€203.33M54.241.43%0.47%-3.86%-69.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:SAB
Sabaf Technology and Safety
14.45
-1.52
-9.54%
IT:TES
Tesmec S.p.A.
0.05
-0.03
-38.37%
IT:BSS
Biesse SPA
7.42
-3.03
-29.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025