SAFRAN SA (SAFRY) AI Stock Analysis

• Market Cap: $91.68B
• Dividend Yield: 0.66%
• Average Volume (3M): 60.73K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 0.80
• Revenue Growth: 17.25%
• EPS Growth: -119.47%
• Country: US
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 61
• Industry: Aerospace & Defense
• EPS (TTM): -0.43
• Shares Outstanding: 1,694,530,400
• 10 Day Avg. Volume: 48,501
• 30 Day Avg. Volume: 60,729
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.66
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

SAFRAN SA's overall score is primarily supported by strong revenue growth and cash flow management. However, net income losses and a challenging valuation hinder the stock's attractiveness. Technical indicators show some positive momentum, but not enough to offset financial concerns. Addressing profitability and improving shareholder value will be essential for future performance.

SAFRAN SA Business Overview & Revenue Model

Company Description

Safran SA is a leading international high-technology group operating in the aerospace, defense, and space markets. The company is headquartered in Paris, France, and is known for its expertise in producing aircraft engines, rocket engines, and aerospace components. Safran's core businesses include the design, manufacture, and maintenance of aircraft engines and nacelles, as well as the development of avionics, landing gear, and aircraft interiors. The company serves a broad range of customers including commercial airlines, military forces, and space agencies globally.

How the Company Makes Money

Safran SA generates revenue primarily through the sale of its aerospace products and services. The company's revenue streams are diversified across several segments. The largest is the propulsion segment, where Safran designs and manufactures aircraft engines and propulsion systems for both commercial and military aircraft. The company also earns significant income from the equipment and defense segment, which includes the production of landing gear, braking systems, avionics, and electrical systems. Additionally, Safran's services segment provides maintenance, repair, and overhaul (MRO) services, which are critical revenue drivers due to long-term contracts with airlines and defense organizations. Safran's strategic partnerships and joint ventures, such as its collaboration with General Electric in CFM International for the LEAP engine, also contribute to its financial performance by expanding its market reach and technological capabilities.

SAFRAN SA Financial Statement Overview

Summary

SAFRAN SA demonstrates strong financial health with solid revenue growth and profitability metrics. The company has effectively managed its balance sheet, maintaining a healthy capital structure with manageable debt levels. Cash flows are robust, supporting operational needs and growth initiatives. While 2022 exhibited some challenges, recent financials highlight a strong recovery and positive outlook.

Income Statement

The income statement reflects a strong recovery with a significant revenue growth rate of 21.1% from 2022 to 2023. The gross profit margin improved to 46.7%, and the net profit margin turned positive to 14.6% from a negative margin in 2022. The EBIT and EBITDA margins also improved, indicating enhanced operational efficiency. However, historical performance shows some volatility, particularly in 2022.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.57, reflecting manageable leverage. Return on equity (ROE) is strong at 29.7%, indicating effective use of equity. The equity ratio is stable at 22.9%, suggesting a well-balanced capital structure. The company's equity position has improved, providing a buffer against potential risks.

Cash Flow

The cash flow statement shows robust free cash flow growth of 10.5%. The operating cash flow to net income ratio is 1.24, demonstrating strong cash generation relative to net income. The free cash flow to net income ratio is 0.85, indicating effective cash management. While cash generation is healthy, the slight decrease in cash and equivalents year-over-year is worth monitoring.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
32.08B	23.65B	19.52B	15.13B	16.63B	25.10B
	Gross Profit
11.25B	11.21B	9.38B	7.28B	7.62B	11.52B
	EBIT
4.47B	2.80B	-2.22B	864.00M	1.32B	3.84B
	EBITDA
6.84B	4.41B	-1.41B	2.38B	2.89B	5.20B
	Net Income Common Stockholders
2.43B	3.44B	-2.43B	68.00M	352.00M	2.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.68B	7.15B	6.93B	5.35B	3.87B	2.77B
	Total Assets
50.47B	50.47B	46.83B	41.72B	39.53B	42.81B
	Total Debt
6.30B	6.58B	6.96B	7.14B	7.02B	7.28B
	Net Debt
-374.00M	-94.00M	270.00M	1.89B	3.27B	4.65B
	Total Liabilities
38.38B	38.38B	35.96B	28.45B	26.78B	30.06B
	Stockholders Equity
12.09B	11.58B	10.41B	12.84B	12.35B	12.37B
Cash Flow		Free Cash Flow
4.17B	3.44B	2.67B	1.68B	1.07B	1.98B
	Operating Cash Flow
5.53B	4.27B	3.54B	2.44B	1.87B	3.15B
	Investing Cash Flow
-2.32B	-1.70B	-1.29B	-738.00M	-799.00M	-1.10B
	Financing Cash Flow
-3.41B	-2.58B	-815.00M	-268.00M	68.00M	-1.74B

SAFRAN SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFRY, the sentiment is Negative. The current price of 55.33 is below the 20-day moving average (MA) of 64.99, below the 50-day MA of 64.94, and below the 200-day MA of 58.31, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 9.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAFRY.

SAFRAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RTX	77 Outperform	$171.47B	36.15	7.96%	1.96%	17.15%	58.66%
LMT	74 Outperform	$108.43B	20.72	81.04%	2.79%	5.14%	-19.14%
GE	70 Outperform	$201.00B	31.34	27.62%	0.79%	-32.60%	-28.55%
TDG	68 Neutral	$73.87B	46.47	-29.16%	―	16.89%	20.33%
SAFRY	63 Neutral	$91.68B	59.88	-6.19%	0.66%	17.25%	-119.47%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
BA	39 Underperform	$121.00B	―	-162.23%	―	-14.49%	-399.90%