SAFRAN SA (SAFRY) AI Stock Analysis

• Market Cap: $126.28B
• Dividend Yield: 0.71%
• Average Volume (3M): 207.23K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 0.72
• Revenue Growth: 17.25%
• EPS Growth: -119.47%
• Country: US
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 91
• Industry: Aerospace & Defense
• EPS (TTM): -0.43
• Shares Outstanding: 1,694,530,400
• 10 Day Avg. Volume: 32,146
• 30 Day Avg. Volume: 207,228
• PEG Ratio: -1.21
• Price to Book (P/B): 9.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.77
• 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

• Rating: 64 Neutral
• Price Target: $81.00 ▲(7.07%Upside)

SAFRAN SA's strong revenue growth and effective cash flow management are significant strengths, supporting a relatively stable financial position. However, the negative P/E ratio and overbought technical indicators present concerns, suggesting caution is warranted in the near term.

SAFRAN SA Business Overview & Revenue Model

Company Description

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, and drones. This segment also offers maintenance, repair, and overhaul services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; and engine systems and equipment, such as thrust reversers and nacelles. This segment also offers avionics, such as flight controls and onboard information systems; security systems, including evacuation slides, emergency arresting systems, and oxygen masks; onboard computers and fuel systems; electrical power management systems and associated engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as sells spare parts. Its products and services are used in civil and military aircraft, and helicopters. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Safran SA was incorporated in 1924 and is headquartered in Paris, France.

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: Positive
• Last Price: 75.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFRY, the sentiment is Positive. The current price of 75.65 is above the 20-day moving average (MA) of 72.74, above the 50-day MA of 66.95, and above the 200-day MA of 60.78, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 74.38 is Negative, neither overbought nor oversold. The STOCH value of 95.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAFRY.

SAFRAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMT	77 Outperform	$112.86B	20.81	82.55%	2.68%	3.12%	-15.29%
RTX	76 Outperform	$185.83B	40.79	7.54%	1.85%	15.11%	34.14%
TDG	75 Outperform	$82.33B	49.50	-29.16%	―	14.90%	17.50%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
GE	64 Neutral	$272.60B	39.86	28.09%	0.58%	-42.92%	109.75%
SAFRY	64 Neutral	$126.28B	59.88	-6.19%	0.71%	17.25%	-119.47%
BA	58 Neutral	$158.94B	―	-162.23%	―	-9.15%	-406.76%