Saab AB Unsponsored ADR (SAABY) AI Stock Analysis

• Market Cap: $39.04B
• Dividend Yield: 0.27%
• Average Volume (3M): 69.06K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.54
• Revenue Growth: 27.43%
• EPS Growth: 35.56%
• Country: US
• Employees: 25,369
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.25
• Shares Outstanding: 1,067,695,600
• 10 Day Avg. Volume: 31,105
• 30 Day Avg. Volume: 69,056
• PEG Ratio: 1.09
• Price to Book (P/B): 6.61
• Price to Sales (P/S): 3.62
• P/FCF Ratio: 50.88
• Enterprise Value/Market Cap: 9.25
• Enterprise Value/Revenue: 4.57
• Enterprise Value/Gross Profit: 21.09
• Enterprise Value/Ebitda: 39.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $39.00 ▲(47.50% Upside)
• Action: Downgraded Date: 03/08/26
• Date: Action: Downgraded 03/08/26

The score is primarily supported by improving operating and net profitability with moderate leverage. It is held back by inconsistent cash conversion/FCF volatility and a mixed near-term technical picture (negative MACD, price slightly below short-term averages). Valuation is somewhat elevated on P/E, partly balanced by the high dividend yield.

Positive Factors

Improving profitability

Saab's sustained expansion in operating and net margins over several years indicates structural improvement in program execution, cost control and scale economics. Higher margins support reinvestment in R&D, lifecycle services and resilience across defense procurement cycles, improving long-term cash generation potential.

Revenue acceleration

An acceleration in top-line growth reflects successful tender wins, program delivery and expanding service contracts. Durable revenue growth driven by multi-year government programs and recurring lifecycle services increases visibility, supports scale benefits and reduces cyclicality relative to one-off sales.

Improved balance sheet and ROE

Lower relative leverage alongside materially higher ROE signals stronger capital efficiency and financial flexibility. A healthier balance sheet supports bidding on large, long-duration contracts, funds working capital swings, and reduces refinancing risk through defense spending cycles.

Negative Factors

Volatile cash conversion

Inconsistent conversion of profits to free cash flow creates execution risk: funding investments, dividends or debt paydown can be strained in weaker years. For a defense contractor with long programs, volatile FCF raises the chance of short-term financing needs and constrains opportunistic capital deployment.

Increase in total debt (2025)

A marked rise in total debt, even from moderate leverage, increases interest and maturity pressures if cash conversion falters. Given program-driven working capital needs, higher debt can reduce strategic flexibility and raise refinancing or covenant risk during slower procurement periods.

Limited gross-margin expansion

A persistently flat gross margin suggests limited pricing power or constrained mix improvement despite revenue gains. This caps operating leverage and leaves profits exposed to input-cost inflation and program cost overruns, limiting sustainable margin upside from scale alone.

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

Strong multi-year improvement in profitability (operating margin ~3.9% in 2020 to ~10.3% in 2025; net margin ~3.0% to ~8.0%) and better ROE (~14.6% in 2025). Leverage is moderate with improved debt-to-equity (~0.34 in 2025), but the 2025 increase in total debt plus volatile cash conversion (FCF about half of net income in 2025 and uneven year-to-year) temper the score.

Income Statement

Revenue growth has accelerated materially, rising from ~7% (2022) and ~23% (2023–2024) to ~9.8% in 2025, alongside a clear step-up in profitability (net margin improving from ~3.0% in 2020 to ~8.0% in 2025). Operating performance also strengthened, with operating margin expanding from ~3.9% (2020) to ~10.3% (2025) and EBITDA margin now ~13%. Weaknesses: gross margin has been fairly range-bound around ~21–22% since 2021 (limited mix/price expansion), and 2025 EBITDA margin was slightly lower than 2023, suggesting some cost pressure despite stronger scale.

Balance Sheet

Leverage looks manageable for the industry, with debt-to-equity improving from ~0.47 (2020) to ~0.34 (2025), and equity expanding steadily over the period. Profitability on shareholders’ capital has also improved meaningfully (return on equity rising from ~5.0% in 2020 to ~14.6% in 2025). Offsetting this, total debt increased notably in 2025 versus 2024, and the asset base has grown quickly—good for scale, but it can raise execution and working-capital demands if growth cools.

Cash Flow

Cash generation improved sharply in 2025, with operating cash flow rising strongly and free cash flow jumping to ~5.6B (free cash flow growth ~146% vs. 2024). However, cash conversion remains a watch item: free cash flow is about half of net income in 2025 (better than 2024 but below 2021), and cash flow metrics have been volatile year-to-year (notably weak 2024 free cash flow versus 2023). Overall, profitability is translating into cash, but not consistently at a high rate.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	79.15B	63.75B	51.61B	42.01B	39.15B
Gross Profit	17.17B	13.66B	11.26B	8.89B	8.21B
EBITDA	9.48B	8.49B	7.21B	4.70B	4.26B
Net Income	6.31B	4.17B	3.38B	2.19B	1.93B
Balance Sheet
Total Assets	124.70B	99.82B	82.76B	72.36B	65.04B
Cash, Cash Equivalents and Short-Term Investments	15.36B	11.74B	13.71B	12.86B	11.84B
Total Debt	14.71B	10.38B	10.04B	9.99B	9.72B
Total Liabilities	81.03B	64.01B	50.40B	42.49B	41.79B
Stockholders Equity	43.34B	35.50B	32.03B	29.49B	22.98B
Cash Flow
Free Cash Flow	5.63B	1.89B	2.92B	2.34B	3.19B
Operating Cash Flow	11.38B	6.73B	6.46B	4.65B	5.71B
Investing Cash Flow	-11.64B	-4.18B	-5.92B	-2.44B	-4.70B
Financing Cash Flow	647.00M	-1.93B	-1.23B	-1.18B	-1.64B

Saab AB Unsponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 26.44 is below the 20-day moving average (MA) of 36.16, below the 50-day MA of 36.97, and below the 200-day MA of 29.55, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.89 is Neutral, 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
NOC	77 Outperform	$101.35B	14.28	26.50%	1.55%	-0.14%	72.35%
LHX	75 Outperform	$67.93B	35.53	8.28%	1.61%	2.83%	47.00%
GD	74 Outperform	$94.54B	21.58	17.57%	1.73%	11.86%	17.39%
LMT	74 Outperform	$146.68B	22.26	80.53%	2.77%	2.88%	-35.15%
SAABY	69 Neutral	$39.04B	28.04	15.59%	0.27%	27.43%	35.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AXON	60 Neutral	$40.37B	3,805.02	4.32%	―	31.77%	-15.34%