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Saab AB Unsponsored ADR
(OTC:SAABY)
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Rating:70Outperform
Price Target:
$37.00
▲(19.82% Upside)
Action:Upgraded
Date:07/19/26
Overall score reflects strong fundamentals and a very positive earnings update (growth, improving margins, record backlog and large contract wins). This is offset by a relatively expensive valuation (P/E ~47 with a modest dividend yield) and only moderately supportive technicals, as the price remains below longer-term moving averages.
Positive Factors
Record order backlog
A SEK 318bn backlog with ~60% deliverable within 2.5 years gives multi-year revenue visibility and underpins the company’s ability to hit medium-term organic growth targets. This backlog supports production planning, capacity investments and predictable aftermarket/service follow‑on revenue.
Negative Factors
Supply‑chain bottlenecks
Persistent component shortages and higher input costs can lengthen delivery cycles, increase working capital and compress margins over multiple quarters. For a program-driven defense firm, chronic supply constraints risk delaying backlog conversion and require sustained capex and supplier investment to fully resolve.
Read all positive and negative factors
Positive Factors
Negative Factors
Record order backlog
A SEK 318bn backlog with ~60% deliverable within 2.5 years gives multi-year revenue visibility and underpins the company’s ability to hit medium-term organic growth targets. This backlog supports production planning, capacity investments and predictable aftermarket/service follow‑on revenue.
Read all positive factors
Saab AB Unsponsored ADR (SAABY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.91B
Dividend Yield0.37%
Average Volume (3M)69.06K
Price to Earnings (P/E)45.3
Beta (1Y)0.55
Revenue Growth39.44%
EPS Growth50.19%
CountryUS
Employees27,865
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)6.59
Shares Outstanding1,067,695,600
10 Day Avg. Volume31,105
30 Day Avg. Volume69,056
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)6.61
Price to Sales (P/S)3.62
P/FCF Ratio45.07
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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 Description
Saab AB (publ), a multinational company founded in 1937 and headquartered in Stockholm, Sweden, specializes in providing advanced products, services, and solutions. Its core markets are global military defense, aerospace, and civil security. The o...
How the Company Makes Money
Saab primarily makes money by selling defense and security products and delivering long-term services to government and institutional customers. Major revenue streams generally include: (1) Product and system sales: revenue from contracts to desig...
Saab AB Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported record backlog (SEK 318bn), large platform contract wins (Poland submarines, GlobalEye, Gripen first batch for Ukraine), strong quarter order intake (~SEK 68bn) and notable margin and EBIT improvements. Business areas Dynamics and Surveillance showed double‑digit quarter growth and margin expansion, R&D spending and capacity investments were increased, and financial metrics (H1 cash flow improvement, cash & liquid investments, BBB+ rating) support the outlook. Challenges include a one‑off SEK ~200m writedown in Naval from a frigate selection loss, ongoing T‑7 production under‑absorption, supply‑chain pressures, an 8% rise in emissions this quarter, and timing of advance payments for the Poland contract. On balance, the positive operational momentum, large contract wins and improving margins materially outweigh the localized/one‑off negatives.Positive Updates
Record Order Backlog
Order backlog reached a record SEK 318 billion, with about 60% related to deliveries within ~2.5 years and long-term backlog (deliveries from year three onward) at SEK 120 billion — a 132% increase versus prior-year quarter.
Negative Updates
Naval Profitability Hit by Frigate Selection Loss
Naval profitability weakened due to not being selected for the Swedish frigate program and a related one-off writedown of approximately SEK 200 million taken in the quarter, negatively affecting the Naval EBIT and margin for the period.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Backlog
Order backlog reached a record SEK 318 billion, with about 60% related to deliveries within ~2.5 years and long-term backlog (deliveries from year three onward) at SEK 120 billion — a 132% increase versus prior-year quarter.
Read all positive updates
Company Guidance
Saab reiterated its 2023–2027 medium‑term targets—around 22% organic sales CAGR, EBIT growth above sales growth and cash conversion >60%—and said it remains confident while monitoring execution; current progress includes a 24% sales CAGR and 34% EBIT CAGR over recent years, a record backlog of SEK 318bn (≈60% deliverable within 2.5 years; SEK 120bn deliverable from year three, +132% y/y), Q2 order intake just over SEK 68bn (including a SEK 47bn Poland submarine contract), H1 positive cash flow of ~SEK 1bn (vs SEK −1.1bn LY) and cash conversion at 53% after the quarter, net liquidity SEK 2.5bn with ~SEK 17bn in cash/liquid investments, rolling 12‑month internally funded R&D SEK 4.4bn (R&D up ~SEK 700m H1 y/y), record quarterly gross margin (up >1pp y/y) and an 11% EBIT margin (EBIT +41% this quarter), strong q/q growth in Dynamics (+36%) and Surveillance (+47%), and an investment push (≈SEK 10bn/year in capacity) to hit ramp‑up and delivery plans; management will reassess guidance after a couple more quarters.Saab AB Unsponsored ADR Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.95B | 79.15B | 63.75B | 51.61B | 42.01B | 39.15B |
| Gross Profit | 19.36B | 17.17B | 13.66B | 11.26B | 8.89B | 8.21B |
| EBITDA | 10.25B | 9.48B | 8.49B | 7.21B | 4.70B | 4.26B |
| Net Income | 7.08B | 6.31B | 4.17B | 3.38B | 2.19B | 1.93B |
Balance Sheet | ||||||
| Total Assets | 135.60B | 124.70B | 99.82B | 82.76B | 72.36B | 65.04B |
| Cash, Cash Equivalents and Short-Term Investments | 12.75B | 15.36B | 11.74B | 13.47B | 12.86B | 11.84B |
| Total Debt | 14.45B | 14.71B | 10.38B | 10.04B | 10.01B | 9.72B |
| Total Liabilities | 85.02B | 81.03B | 64.01B | 50.40B | 42.51B | 41.79B |
| Stockholders Equity | 50.19B | 43.34B | 35.50B | 32.03B | 29.49B | 22.98B |
Cash Flow | ||||||
| Free Cash Flow | 6.63B | 6.36B | 1.89B | 2.92B | 2.34B | 3.19B |
| Operating Cash Flow | 14.45B | 12.11B | 6.73B | 6.46B | 4.65B | 5.71B |
| Investing Cash Flow | -12.56B | -11.64B | -4.18B | -5.92B | -2.44B | -4.70B |
| Financing Cash Flow | -122.00M | 647.00M | -1.93B | -1.23B | -1.18B | -1.64B |
Saab AB Unsponsored ADR Technical Analysis
Positive
30.88
Price Trends
28.83
Positive
30.12
Positive
30.93
Positive
Market Momentum
1.27
Negative
71.33
Negative
100.02
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 30.88 is above the 20-day moving average (MA) of 30.40, above the 50-day MA of 28.83, and below the 200-day MA of 30.93, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 71.33 is Negative, neither overbought nor oversold. The STOCH value of 100.02 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $103.74B | 23.06 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $134.49B | 21.38 | 86.24% | 2.34% | 7.20% | 52.79% | |
73 Outperform | $42.54B | 204.39 | 5.92% | ― | 33.95% | -40.50% | |
70 Outperform | $33.91B | 45.33 | 15.85% | 0.37% | 39.44% | 50.19% | |
70 Outperform | $77.07B | 17.20 | 26.58% | 1.73% | 5.90% | 16.00% | |
68 Neutral | $51.59B | 27.82 | 9.52% | 1.63% | 7.29% | 10.75% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SAABY
Saab AB Unsponsored ADR
33.42
7.63
29.61%
GD
General Dynamics
392.05
82.58
26.68%
LHX
L3Harris Technologies
286.67
20.66
7.77%
LMT
Lockheed Martin
587.95
172.89
41.65%
NOC
Northrop Grumman
571.58
0.30
0.05%
AXON
Axon Enterprise
571.01
-247.68
-30.25%
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.