SAFRAN SA (SAFRY) AI Stock Analysis

• Market Cap: $141.42B
• Dividend Yield: 0.96%
• Average Volume (3M): 32.17K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.67
• Revenue Growth: 14.84%
• EPS Growth: 164.83%
• Country: US
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 1.09
• Shares Outstanding: 1,694,530,400
• 10 Day Avg. Volume: 30,951
• 30 Day Avg. Volume: 32,175
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 4.84
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 198.43
• 1Y Price Target: $90.00
• Price Target Upside: 6.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $90.00 ▲(6.14% Upside)

SAFRAN SA's overall score reflects strong revenue growth, operational profitability, and effective cash flow management. The positive sentiment from the earnings call, highlighting record operating margins and strategic achievements, further supports the score. However, challenges such as net income losses and valuation concerns due to a negative P/E ratio temper the outlook.

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 through several key streams, primarily from its aerospace propulsion and equipment segments. The company earns a significant portion of its income from the sale and maintenance of aircraft engines, which are used by airlines and aircraft manufacturers worldwide. Additionally, Safran provides aftermarket services, including engine maintenance, repair, and overhaul, which are crucial for its long-term revenue generation. The company's aerospace equipment division, which supplies landing gear, brakes, and other aircraft components, also contributes substantially to its earnings. Safran's partnerships with leading aerospace companies and defense organizations globally further bolster its revenue, as these collaborations often involve long-term contracts and joint ventures that enhance its market position and financial stability.

SAFRAN SA Financial Statement Overview

Summary

SAFRAN SA demonstrates strong revenue growth and operational profitability, with effective cash flow management. However, net income losses impact equity and return metrics. Maintaining cash flow strength while addressing profitability issues is crucial for future financial health and shareholder value.

Income Statement

The company's revenue has shown consistent growth over recent years, increasing from $15.13 billion in 2021 to $27.72 billion in 2024. However, net income experienced a significant decline, resulting in a negative net profit margin of -2.4% in 2024. The gross profit margin improved to 47.86%, indicating efficient production and sales operations. EBIT and EBITDA margins demonstrate operational profitability, but net losses indicate challenges in managing expenses or exceptional costs.

Balance Sheet

SAFRAN SA maintains a relatively stable financial position with a debt-to-equity ratio decreasing to 0.50 in 2024, reflecting good leverage management. However, stockholders' equity decreased, impacting the equity ratio, which stands at 18.5%. The return on equity has turned negative, mirroring the net losses, which is a concern for shareholder value generation.

Cash Flow

Despite recent net losses, the company generated healthy free cash flow of $3.19 billion in 2024, demonstrating strong cash management. The free cash flow to net income ratio is positive due to effective operating cash flow generation, which supports financial flexibility and potential for future investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.72B	23.65B	19.52B	15.13B	16.63B
Gross Profit	13.27B	11.21B	2.19B	980.00M	1.08B
EBITDA	676.00M	4.41B	-2.03B	1.55B	1.90B
Net Income	-667.00M	3.44B	-2.46B	43.00M	352.00M
Balance Sheet
Total Assets	55.01B	50.47B	46.83B	41.72B	39.53B
Cash, Cash Equivalents and Short-Term Investments	6.76B	7.15B	6.69B	5.25B	3.75B
Total Debt	5.06B	6.58B	6.95B	7.13B	7.01B
Total Liabilities	44.29B	38.38B	35.96B	28.45B	26.78B
Stockholders Equity	10.18B	11.58B	10.41B	12.84B	12.35B
Cash Flow
Free Cash Flow	3.19B	3.44B	2.95B	2.00B	1.34B
Operating Cash Flow	4.73B	4.27B	3.54B	2.44B	1.87B
Investing Cash Flow	-1.85B	-1.70B	-1.29B	-738.00M	-799.00M
Financing Cash Flow	-3.07B	-2.58B	-815.00M	-268.00M	68.00M

SAFRAN SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 84.79 is above the 20-day moving average (MA) of 82.63, above the 50-day MA of 79.61, and above the 200-day MA of 66.31, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 61.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.73 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
GE	82 Outperform	$296.53B	39.03	40.20%	0.48%	-32.80%	69.39%
RTX	76 Outperform	$208.13B	34.16	10.13%	1.65%	15.44%	164.00%
SAFRY	72 Outperform	$141.42B	29.97	34.32%	0.96%	14.84%	164.83%
TDG	68 Neutral	$79.49B	47.34	-29.16%	―	12.86%	11.44%
LMT	64 Neutral	$99.52B	24.00	73.06%	2.95%	1.09%	-35.50%
Sector *	63 Neutral	$10.83B	16.63	8.34%	2.06%	2.20%	-16.67%
BA	56 Neutral	$175.89B	―	-162.23%	―	2.41%	-193.57%