Saab AB (SAAB.B) AI Stock Analysis

• Market Cap: kr278.54B
• Dividend Yield: 0.34%
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): 53.6
• Beta (1Y): 0.67
• Revenue Growth: 22.75%
• EPS Growth: 41.98%
• Country: SE
• Employees: 25,369
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.83
• Shares Outstanding: 533,847,800
• 10 Day Avg. Volume: 2,059,482
• 30 Day Avg. Volume: 2,265,896
• PEG Ratio: 1.31
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 65.93
• 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: kr458.43
• Price Target Upside: -13.93% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: kr590.00 ▲(10.78% Upside)

Saab AB's overall stock score is driven by strong financial performance and positive earnings call highlights, including upgraded guidance and significant order intake growth. Technical analysis supports a positive trend, though valuation concerns due to a high P/E ratio and low dividend yield slightly temper the outlook.

Saab AB 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 through multiple streams, primarily from the sale of defense and security products and services. Key revenue streams include the sale of military aircraft such as the Gripen fighter jet, submarines, and various defense systems and equipment. The company also earns revenue from long-term contracts and project-based work with governments and defense agencies, which often include maintenance, support, and upgrades for their products. Additionally, Saab has established significant partnerships and collaborations with other defense contractors and governmental bodies, which further contribute to its earnings through joint projects and technology sharing.

Saab AB Financial Statement Overview

Summary

Saab AB exhibits strong financial health characterized by consistent revenue growth, solid profitability margins, and effective cash management. The balance sheet reflects prudent financial management with controlled leverage. Continuous improvement in free cash flow supports the company's financial flexibility and potential for future investments.

Income Statement

Saab AB demonstrates strong growth in revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 21.87%, and the net profit margin is 7.14%, indicating solid profitability. Revenue growth rate from 2024 to TTM is 2.52%, with a remarkable increase from 2023 to 2024 at 23.53%. EBIT and EBITDA margins are robust at 9.03% and 11.54%, respectively, underscoring effective cost management and operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.27, showing a conservative leverage approach. Return on equity (ROE) for TTM is 12.22%, indicating efficient use of shareholder capital. The equity ratio stands at 37.55%, reflecting a healthy proportion of equity financing. However, the incremental increase in total debt over time warrants monitoring.

Cash Flow

Saab AB displays strong cash flow generation with an operating cash flow to net income ratio of 1.96 in TTM, highlighting excellent cash conversion. The free cash flow to net income ratio is 0.84, indicating healthy cash retention after capital expenditures. The free cash flow growth rate from 2024 to TTM is an impressive 106.06%, demonstrating substantial improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.97B	63.75B	51.61B	42.01B	39.15B	35.43B
Gross Profit	15.17B	13.66B	11.26B	8.89B	8.21B	5.68B
EBITDA	7.74B	8.49B	7.36B	4.84B	4.35B	2.75B
Net Income	5.20B	4.17B	3.38B	2.19B	1.93B	1.07B
Balance Sheet
Total Assets	105.89B	99.82B	82.76B	72.36B	65.04B	60.57B
Cash, Cash Equivalents and Short-Term Investments	7.81B	11.74B	13.47B	12.86B	11.84B	10.38B
Total Debt	9.89B	10.38B	10.04B	9.99B	9.72B	10.00B
Total Liabilities	65.94B	64.01B	50.40B	42.49B	41.79B	38.92B
Stockholders Equity	39.62B	35.50B	32.03B	29.49B	22.98B	21.47B
Cash Flow
Free Cash Flow	5.06B	1.89B	2.92B	2.34B	3.19B	2.91B
Operating Cash Flow	11.04B	6.73B	6.46B	4.65B	5.71B	5.80B
Investing Cash Flow	-8.48B	-4.18B	-5.92B	-2.44B	-4.70B	-4.00B
Financing Cash Flow	-2.08B	-1.93B	-1.23B	-1.18B	-1.64B	-1.13B

Saab AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 532.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SAAB.B, the sentiment is Positive. The current price of 532.6 is above the 20-day moving average (MA) of 522.85, above the 50-day MA of 516.61, and above the 200-day MA of 391.52, indicating a bullish trend. The MACD of 1.89 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SAAB.B.

Saab AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAAB.B	76 Outperform	kr278.54B	53.64	14.05%	0.34%	22.75%	41.98%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
ACCMF	―	$85.49M	―	-0.45%	―	―	―
8QL	―	€58.42M	45.67	32.79%	―	―	―
8QA	―	€751.06M	95.39	-19.55%	―	―	―
1G2	―	€195.60M	―	-128.43%	―	―	―
CTT	65 Neutral	kr2.91B	52.95		2.30%	-13.34%	-46.12%

Saab AB Corporate Events

Saab Secures SEK 5.3 Billion Gripen E/F Order for Thailand

Saab has secured a contract with the Swedish Defence Materiel Administration to supply four Gripen E/F fighter aircraft to Thailand, valued at approximately SEK 5.3 billion, with deliveries scheduled from 2025 to 2030. This deal includes a long-term offset package involving technology transfer and industrial cooperation with Thailand, enhancing the Royal Thai Air Force’s capabilities and strengthening Saab’s position in the global defence market.

The most recent analyst rating on ($SE:SAAB.B) stock is a Buy with a SEK600.00 price target. To see the full list of analyst forecasts on Saab AB stock, see the SE:SAAB.B Stock Forecast page.

Saab Acquires Deform to Boost Defense Supply Security

Saab has acquired Deform, a company specializing in forming demanding materials, to strengthen supply security for the Swedish defense industry. This acquisition enhances Saab’s submarine manufacturing capabilities and ensures long-term stability for Deform’s operations, benefiting both companies and their stakeholders.

The most recent analyst rating on ($SE:SAAB.B) stock is a Sell with a SEK375.00 price target. To see the full list of analyst forecasts on Saab AB stock, see the SE:SAAB.B Stock Forecast page.