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Saab AB Unsponsored ADR (SAABY)
OTHER OTC:SAABY
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Saab AB Unsponsored ADR
(OTC:SAABY)
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Rating:70Outperform
Price Target:
$42.00
▲(58.85% Upside)
The score is primarily supported by solid financial strength (notably low leverage and healthy margins) and a positive earnings call with raised growth guidance plus strong backlog/order intake. It is tempered by weakening TTM revenue and free cash flow trends, very overbought technical indicators, and a high P/E valuation.
Positive Factors
Strong Order Backlog
A robust order backlog ensures steady future revenue streams and reflects strong demand for Saab's products, supporting long-term growth.
Strategic Partnerships
Collaboration with Airbus on unmanned technology could enhance Saab's product offerings and market position in aerospace defense.
Sustainability Achievements
Continued focus on sustainability can improve operational efficiency and appeal to environmentally conscious stakeholders.
Negative Factors
Revenue Decline
A significant revenue decline can impact profitability and limit resources available for reinvestment, affecting long-term growth.
Free Cash Flow Challenges
Reduced free cash flow limits financial flexibility and the ability to fund new projects or return capital to shareholders.
Profitability Impact from T-7 Program
Ongoing costs related to the T-7 program could pressure margins and profitability, affecting financial performance over the next few years.
Saab AB Unsponsored ADR (SAABY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.21B
Dividend Yield0.27%
Average Volume (3M)69.06K
Price to Earnings (P/E)79.2
Beta (1Y)0.49
Revenue Growth27.43%
EPS Growth35.56%
CountryUS
Employees25,369
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,067,695,600
10 Day Avg. Volume31,105
30 Day Avg. Volume69,056
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)3.49
Price to Sales (P/S)1.94
P/FCF Ratio65.38
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda5.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Saab AB Unsponsored ADR Business Overview & Revenue Model
Company DescriptionSaab AB is a Swedish aerospace and defense company that specializes in the development and production of advanced technology solutions for military and civilian applications. The company operates through various segments, including Defense and Security, which encompasses products such as fighter aircraft, submarine systems, and radar technology, as well as civil security solutions. Saab is known for its innovative engineering and commitment to sustainability, offering products that enhance the capabilities of armed forces as well as contributing to societal safety and security.
How the Company Makes MoneySaab AB generates revenue primarily through the sale of defense and security products and services. Key revenue streams include contracts for military aircraft, such as the Gripen fighter jet, and naval systems like submarines and surface vessels. The company also earns from maintenance, repair, and overhaul services, as well as providing training and simulation solutions to defense forces. Significant partnerships with governments and defense organizations, both in Sweden and internationally, contribute to long-term contracts and projects, which bolster revenue stability. Additionally, Saab participates in collaborative defense programs and joint ventures that further expand its market reach and product offerings.
Saab AB Unsponsored ADR Earnings Call Summary
Earnings Call Date:Oct 24, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Positive
Saab's Q3 earnings call highlighted strong growth across various segments, significant order intake, and an upgraded growth outlook for 2025. While there are challenges such as the impact of the T-7 program on profitability and some negative financial net aspects, the overall performance and future prospects appear robust.Q3-2025 Updates
Positive Updates
Strong Order Intake and Backlog
Order intake for Q3 was SEK 21 billion, with an additional SEK 16 billion in October, leading to a backlog of SEK 202 billion. This positions Saab well for future growth.
Record Sales and EBIT Growth
The highest sales and EBIT ever recorded in a third quarter, with a 17% reported sales growth (18% organic) and a 16% EBIT growth.
Significant Organic Growth
Organic growth of 21% for the first nine months, leading to an upgraded outlook for 2025 from 16%-20% growth to 20%-24%.
Successful Segment Performance
Aeronautics grew 34%, Dynamics 12%, and Combitech 17%. Surveillance also grew by 8%, driven by strong project execution and high demand.
Sustainability Achievements
Reduction of CO2 emissions by 4% in the first nine months compared to last year, with a 33% reduction from the base year, supporting SBTi targets.
Diversity and Inclusion Progress
The percentage of female employees increased to 27%, with 34% of recent hires being female.
Negative Updates
Profitability Impact from T-7 Program
Aeronautics profitability is impacted by startup costs in the T-7 program, with expectations to continue for the next three years.
Negative Financial Net
The financial net turned negative due to a SEK 50 million revaluation of shares in a financial investment and lower currency hedge results.
Civil Business Impact on Surveillance Margins
Surveillance's EBIT margin is negatively impacted by the Civil business, despite overall growth in the segment.
Company Guidance
In Saab's Q3 2025 earnings call, the company provided guidance indicating a strong financial performance, with a significant increase in order intake and an optimistic outlook for the fiscal year. Saab's organic growth for the first nine months reached 21%, leading to an updated annual growth guidance of 20% to 24%, up from the previous 16% to 20%. The company reported SEK 21 billion in order intake for the quarter, with an additional SEK 16 billion after the quarter ended, contributing to a backlog exceeding SEK 200 billion. Saab's book-to-bill ratio stands at 1.3x, and EBIT margins were noted at 8.7% for the quarter and 9.3% year-to-date. The company remains confident in generating a positive cash flow by year-end, despite a current nine-month negative cash flow of approximately SEK 1 billion. Saab's divisions, including Aeronautics, Dynamics, and Surveillance, all demonstrated robust growth, contributing to the company's overall strong performance.Saab AB Unsponsored ADR Financial Statement Overview
Summary
Saab AB demonstrates a solid financial position with strong profitability and efficient capital management. However, significant revenue and free cash flow declines in the TTM period pose potential risks.Income Statement
Saab AB's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue by 16.98%, which is concerning. However, the company maintains a healthy gross profit margin of 21.99% and a net profit margin of 7.18%, reflecting operational efficiency. The EBIT and EBITDA margins are also solid at 10.13% and 10.91%, respectively, indicating good profitability despite the revenue drop.72
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.32, suggesting prudent financial leverage. Return on equity is robust at 13.46%, indicating effective use of equity capital. The equity ratio stands at 37.52%, showing a stable capital structure with a significant portion of assets financed by equity.78
Positive
Cash Flow
Cash flow analysis reveals challenges, with a significant decline in free cash flow growth by 59.63% in the TTM period. However, the operating cash flow to net income ratio is healthy at 1.65, and the free cash flow to net income ratio is 0.27, indicating that the company generates sufficient cash relative to its net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.10B | 63.75B | 51.61B | 42.01B | 39.15B | 35.43B |
| Gross Profit | 12.64B | 13.66B | 11.26B | 8.89B | 8.21B | 5.68B |
| EBITDA | 6.71B | 8.49B | 7.21B | 4.70B | 4.26B | 1.77B |
| Net Income | 4.33B | 4.17B | 3.38B | 2.19B | 1.93B | 1.07B |
Balance Sheet | ||||||
| Total Assets | 11.59B | 99.82B | 82.76B | 72.36B | 65.04B | 60.57B |
| Cash, Cash Equivalents and Short-Term Investments | 948.95M | 11.74B | 13.71B | 12.86B | 11.84B | 10.38B |
| Total Debt | 1.39B | 10.38B | 10.04B | 9.99B | 9.72B | 10.00B |
| Total Liabilities | 7.20B | 64.01B | 50.40B | 42.49B | 41.79B | 38.92B |
| Stockholders Equity | 4.35B | 35.50B | 32.03B | 29.49B | 22.98B | 21.47B |
Cash Flow | ||||||
| Free Cash Flow | 2.04B | 1.89B | 2.92B | 2.34B | 3.19B | 2.91B |
| Operating Cash Flow | 7.14B | 6.73B | 6.46B | 4.65B | 5.71B | 5.80B |
| Investing Cash Flow | -6.45B | -4.18B | -5.92B | -2.44B | -4.70B | -4.00B |
| Financing Cash Flow | -1.58B | -1.93B | -1.23B | -1.18B | -1.64B | -1.13B |
Saab AB Unsponsored ADR Technical Analysis
Positive
26.44
Price Trends
28.55
Positive
28.27
Positive
26.46
Positive
Market Momentum
2.87
Negative
82.54
Negative
94.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAABY, the sentiment is Positive. The current price of 26.44 is below the 20-day moving average (MA) of 31.76, below the 50-day MA of 28.55, and below the 200-day MA of 26.46, indicating a bullish trend. The MACD of 2.87 indicates Negative momentum. The RSI at 82.54 is Negative, neither overbought nor oversold. The STOCH value of 94.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAABY.
Saab AB Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $98.86B | 23.72 | 17.78% | 1.73% | 11.86% | 17.39% | |
76 Outperform | $93.22B | 23.45 | 26.15% | 1.55% | -0.14% | 72.35% | |
74 Outperform | $64.13B | 36.81 | 9.13% | 1.61% | 2.83% | 47.00% | |
70 Outperform | $40.21B | 79.22 | 13.59% | 0.27% | 27.43% | 35.56% | |
70 Outperform | $132.52B | 31.97 | 62.78% | 2.77% | 2.88% | -35.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $49.65B | 201.71 | 10.03% | ― | 31.77% | -15.34% |
* Industrials Sector Average
SAABY
Saab AB Unsponsored ADR
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27.68
276.78%
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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.