Saab AB Unsponsored ADR (SAABY) AI Stock Analysis

• Market Cap: $29.30B
• Dividend Yield: 0.44%
• Average Volume (3M): 69.06K
• Price to Earnings (P/E): 57.7
• Beta (1Y): 0.42
• Revenue Growth: 27.43%
• EPS Growth: 35.56%
• Country: US
• Employees: 25,369
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.09
• Shares Outstanding: 1,067,695,600
• 10 Day Avg. Volume: 31,105
• 30 Day Avg. Volume: 69,056
• PEG Ratio: 1.23
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 65.38
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 3.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $26.00 ▲(8.24% Upside)

Saab AB's overall stock score reflects strong financial performance and positive earnings call sentiment, which are offset by bearish technical indicators and high valuation. The company's robust growth outlook and strategic focus on operational efficiency are significant strengths, while the current market momentum and valuation present challenges.

Positive Factors

Strong Order Backlog

A substantial order backlog ensures future revenue streams and provides stability, allowing Saab to plan long-term investments and operations effectively.

Revenue Growth

Consistent revenue growth indicates robust demand for Saab's products and services, supporting its market position and potential for future profitability.

Sustainability Achievements

Saab's commitment to sustainability enhances its reputation and aligns with global trends, potentially attracting environmentally conscious clients and investors.

Negative Factors

Profitability Impact from T-7 Program

Ongoing costs from the T-7 program may pressure margins, affecting short-term profitability and requiring careful financial management over the next three years.

Negative Financial Net

Negative financial net impacts overall profitability, indicating potential volatility in financial investments and currency hedging strategies.

Civil Business Impact on Margins

Margin pressure from the Civil business could affect overall segment profitability, necessitating strategic adjustments to improve efficiency and cost management.

Saab AB Unsponsored ADR Business Overview & Revenue Model

Company Description

Saab AB (publ) provides products, services, and solutions for the military defense, aerospace, and civil security markets worldwide. The company operates through five segments: Aeronautics, Dynamics, Surveillance, Kockums, and Combitech. The company develops military and civil aviation technology, as well as conducts studies on manned and unmanned aircraft systems. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, which include airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Further, it provides product integration, support, technical maintenance, and logistics services, as well as products, solutions, and services. Additionally, the company offers technology for traffic management and public safety; and supports industry, defense, and public sectors with services comprising cyber security, artificial intelligence, and big data analysis. It also provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information. Saab AB (publ) was founded in 1937 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Saab 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 Financial Statement Overview

Summary

Saab AB exhibits a strong financial profile with impressive revenue growth, robust profitability, and effective cash flow management. The company's strategic focus on operational efficiency and prudent financial management positions it well within the Aerospace & Defense industry. While the balance sheet is stable, further optimization of asset utilization could enhance financial strength.

Income Statement

Saab AB has demonstrated strong revenue growth with a 7.06% increase in TTM, supported by solid gross and net profit margins of 21.68% and 7.43%, respectively. The EBIT and EBITDA margins are healthy at 10.30% and 11.06%, indicating efficient operational management. The consistent upward trajectory in revenue and profitability metrics reflects robust business performance.

Balance Sheet

The company's balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 0.25, indicating prudent leverage use. Return on equity is strong at 13.96%, suggesting effective use of shareholder funds. The equity ratio of 37.42% highlights a solid equity base, although there is room for improvement in asset utilization.

Cash Flow

Saab AB's cash flow performance is commendable, with a significant 29.79% growth in free cash flow, reflecting strong cash generation capabilities. The operating cash flow to net income ratio of 2.12 indicates efficient cash conversion, while the free cash flow to net income ratio of 0.46 suggests a healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.97B	63.75B	51.61B	42.01B	39.15B	35.43B
Gross Profit	15.17B	13.66B	11.26B	8.89B	8.21B	5.68B
EBITDA	8.20B	8.49B	7.21B	4.70B	4.26B	1.77B
Net Income	5.20B	4.17B	3.38B	2.19B	1.93B	1.07B
Balance Sheet
Total Assets	105.89B	99.82B	82.76B	72.36B	65.04B	60.57B
Cash, Cash Equivalents and Short-Term Investments	7.81B	11.74B	13.71B	12.86B	11.84B	10.38B
Total Debt	9.89B	10.38B	10.04B	9.99B	9.72B	10.00B
Total Liabilities	65.94B	64.01B	50.40B	42.49B	41.79B	38.92B
Stockholders Equity	39.62B	35.50B	32.03B	29.49B	22.98B	21.47B
Cash Flow
Free Cash Flow	5.06B	1.89B	2.92B	2.34B	3.19B	2.91B
Operating Cash Flow	11.04B	6.73B	6.46B	4.65B	5.71B	5.80B
Investing Cash Flow	-8.48B	-4.18B	-5.92B	-2.44B	-4.70B	-4.00B
Financing Cash Flow	-2.08B	-1.93B	-1.23B	-1.18B	-1.64B	-1.13B

Saab AB Unsponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.02
• 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 SAABY, the sentiment is Negative. The current price of 24.02 is below the 20-day moving average (MA) of 26.86, below the 50-day MA of 27.59, and below the 200-day MA of 24.30, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 2.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAABY.

Saab AB Unsponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$92.13B	22.10	17.78%	1.74%	11.86%	17.39%
NOC	75 Outperform	$81.27B	20.44	26.15%	1.54%	-0.14%	72.35%
LMT	70 Outperform	$104.37B	25.18	62.78%	2.92%	2.88%	-35.15%
LHX	70 Neutral	$51.69B	29.67	9.13%	1.74%	2.83%	47.00%
SAABY	69 Neutral	$29.30B	57.68	13.59%	0.44%	27.43%	35.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AXON	58 Neutral	$41.40B	166.07	10.03%	―	31.77%	-15.34%