SAFRAN SA (SAFRY) AI Stock Analysis

• Market Cap: $152.47B
• Dividend Yield: 0.94%
• Average Volume (3M): 51.55K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.71
• Revenue Growth: 14.84%
• EPS Growth: 164.83%
• Country: US
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.11
• Shares Outstanding: 1,673,378,500
• 10 Day Avg. Volume: 24,450
• 30 Day Avg. Volume: 51,555
• PEG Ratio: -0.02
• Price to Book (P/B): 8.35
• Price to Sales (P/S): 4.13
• P/FCF Ratio: 28.76
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 4.19
• Enterprise Value/Gross Profit: 13.63
• Enterprise Value/Ebitda: 22.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.01
• Revenue Forecast (FY): $41.76B

• Rating: 75 Outperform
• Price Target: $103.00 ▲(10.56% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (strong revenue trajectory and consistently positive cash generation, tempered by earnings volatility), supported by bullish technical trend signals. Upgraded guidance and positive earnings-call sentiment add confidence, while valuation is the main offset due to a moderate P/E and low dividend yield.

Positive Factors

Strong free cash flow generation

Consistent, material free cash flow and a high EBIT-to-cash conversion ratio provide durable financial flexibility. This strengthens capacity to fund R&D and capex for production ramps, sustain dividends and buybacks, and reduce leverage, improving resilience across cycles.

Large installed base & aftermarket recurrences

A deep installed base and rising shop-visit and services assumptions create recurring, less cyclical revenue streams. Aftermarket demand (spares, MRO) supports margin sustainability and cash generation over years, insulating the firm from OE production cyclicality.

Propulsion strength and LEAP production ramp

A rapid LEAP delivery ramp expands OE revenue and enlarges the future aftermarket base, while strong propulsion margins indicate competitive advantage. Higher engine volumes underpin durable revenue growth, scale economics, and long-term serviceable inventory demand.

Negative Factors

Earnings volatility and one-off charges

Significant one-offs and volatile net results across years complicate trend visibility and weaken recurring profitability metrics. This makes forecasting and capital allocation harder, and can mask underlying operating performance that investors and management must disentangle.

FX and hedging exposure

Material USD/EUR exposure and complex hedge structures create persistent earnings and cashflow sensitivity to currency moves. KO barrier risks and translation headwinds can produce sizeable P&L swings, complicating multi-year guidance and capital planning.

Supply-chain and raw-material constraints

Sustained upstream bottlenecks and material supply risks can limit production ramps, increase input costs, and require costly vertical investments. These structural supply constraints pose multi-year risks to delivery schedules, margins and the pace at which scale benefits materialize.

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 generates revenue through various streams, primarily by manufacturing and selling aircraft engines and equipment. Key revenue streams include commercial aircraft engines, which are a significant contributor due to partnerships with major aircraft manufacturers like Boeing and Airbus. Additionally, SAFRAN earns income from defense contracts, supplying military engines, avionics, and other defense-related systems to governments and defense contractors worldwide. The company also benefits from maintenance, repair, and overhaul (MRO) services for its products, providing ongoing support and generating recurring revenue. Strategic partnerships and long-term contracts with both commercial and governmental entities are pivotal to SAFRAN's earnings, ensuring a stable income flow from its diverse portfolio of aerospace and defense solutions.

SAFRAN SA Financial Statement Overview

Summary

Strong multi-year revenue growth and consistently positive operating/free cash flow (with a sharp FCF improvement in 2025) support a solid profile. The main constraint is earnings volatility, including losses in 2022 and 2024, and a balance sheet that is manageable but not conservative given the sustained debt load.

Income Statement

Revenue has expanded strongly from 2020 to 2025 (from ~16.6B to ~30.0B), showing a solid multi-year growth trajectory. Profitability, however, has been volatile: net results swung from losses in 2022 and 2024 to strong profits in 2023 and a very strong 2025. The latest annual period shows high operating profit relative to revenue, but the year-to-year inconsistency (including a 2024 loss) keeps the score below top-tier.

Balance Sheet

Leverage looks manageable overall, with debt generally around roughly half of equity in recent years (about 0.50–0.67 debt-to-equity historically). Equity increased meaningfully into 2025, which supports balance-sheet resilience. That said, the combination of earnings volatility and a consistently material debt load suggests the capital structure is solid but not conservative, leaving some sensitivity if industry conditions weaken.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow have been positive every year provided, and free cash flow improved sharply in 2025 (up ~20% year over year to ~4.3B). While free cash flow growth has been uneven (including a decline in 2024), the business has demonstrated an ability to translate operations into cash across the cycle, which supports financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.96B	27.72B	23.65B	19.52B	15.13B
Gross Profit	4.30B	13.27B	11.21B	2.19B	980.00M
EBITDA	5.40B	676.00M	4.41B	3.68B	1.55B
Net Income	6.89B	-667.00M	3.44B	-2.46B	43.00M
Balance Sheet
Total Assets	61.79B	55.01B	50.47B	46.83B	41.72B
Cash, Cash Equivalents and Short-Term Investments	6.79B	6.76B	6.68B	6.93B	5.35B
Total Debt	5.97B	5.06B	6.58B	6.95B	7.13B
Total Liabilities	46.33B	44.29B	38.38B	35.96B	28.45B
Stockholders Equity	14.83B	10.18B	11.58B	10.41B	12.84B
Cash Flow
Free Cash Flow	4.31B	3.19B	3.44B	2.95B	2.00B
Operating Cash Flow	5.50B	4.73B	4.27B	3.54B	2.44B
Investing Cash Flow	-3.24B	-1.85B	-1.70B	-1.29B	-738.00M
Financing Cash Flow	-1.93B	-3.07B	-2.58B	-815.00M	-268.00M

SAFRAN SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 93.16
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 93.16 is below the 20-day moving average (MA) of 96.96, below the 50-day MA of 93.26, and above the 200-day MA of 85.77, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 1.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SAFRY.

SAFRAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	77 Outperform	$106.06B	19.57	26.50%	1.55%	-0.14%	72.35%
SAFRY	75 Outperform	$152.47B	14.63	51.15%	0.94%	14.84%	164.83%
RTX	75 Outperform	$279.50B	36.54	10.62%	1.44%	8.79%	39.63%
GD	74 Outperform	$97.88B	21.58	17.57%	1.73%	11.86%	17.39%
LMT	74 Outperform	$152.81B	22.26	80.53%	2.77%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	56 Neutral	$176.70B	74.05	-94.94%	―	10.19%	-6.03%