Saab AB (SAAB.B) AI Stock Analysis

• Market Cap: kr266.16B
• Dividend Yield: 0.37%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 57.0
• Beta (1Y): 0.68
• Revenue Growth: 20.34%
• EPS Growth: 35.97%
• Country: SE
• Employees: 25,369
• Sector: Industrials
• Sector Strength: 94
• Industry: Aerospace & Defense
• EPS (TTM): 2.35
• Shares Outstanding: 533,847,800
• 10 Day Avg. Volume: 2,484,542
• 30 Day Avg. Volume: 2,601,927
• PEG Ratio: 4.33
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.85
• 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: kr407.00
• Price Target Upside: -16.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ―

Saab AB demonstrates strong financial performance with robust revenue growth and effective cash management, leading to an overall high financial health score. The positive momentum in technical analysis supports the stock's upward trend, although caution is advised due to potential overbought conditions. Valuation concerns arise from a high P/E ratio and low dividend yield, indicating potential overvaluation. The latest earnings call was favorable, highlighting record sales and improved margins, though challenges in certain segments were noted. Overall, Saab AB's stock is promising, with strong fundamentals and positive market sentiment, but investors should remain mindful of valuation and specific business risks.

Saab AB Business Overview & Revenue Model

Company Description

Saab AB is a Swedish aerospace and defense company that operates primarily across the sectors of aeronautics, defense and security, and civil security. The company is renowned for its development and manufacturing of advanced military technology and systems, including fighter aircraft, missile systems, and radar systems. Saab also provides a range of civil security solutions, offering products and services that enhance public safety and security.

How the Company Makes Money

Saab AB generates revenue through the sale of advanced defense and security systems, including fighter jets, submarines, and radar systems, primarily to government and military clients worldwide. The company also earns income from service contracts for maintenance, support, and upgrades of its products. Additionally, Saab's civil security division provides technology and solutions for public safety, contributing to its revenue. Key partnerships with governments and defense contractors, as well as long-term contracts and projects, significantly support the company's earnings.

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. While the financial outlook is positive, careful attention to debt levels and maintaining growth momentum is recommended.

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
65.36B	63.75B	51.61B	42.01B	39.15B	35.43B
	Gross Profit
14.30B	13.66B	11.26B	8.89B	8.21B	5.68B
	EBIT
5.90B	5.66B	4.42B	3.27B	2.89B	256.00M
	EBITDA
7.54B	8.49B	7.36B	4.84B	4.35B	2.75B
	Net Income Common Stockholders
4.67B	4.17B	3.38B	2.19B	1.93B	1.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.21B	11.74B	13.47B	12.86B	11.84B	10.38B
	Total Assets
101.68B	99.82B	82.76B	72.36B	65.04B	60.57B
	Total Debt
10.17B	10.38B	10.04B	9.99B	9.72B	10.00B
	Net Debt
6.83B	7.54B	7.91B	7.12B	8.02B	7.72B
	Total Liabilities
63.21B	64.01B	50.40B	42.49B	41.79B	38.92B
	Stockholders Equity
38.19B	35.50B	32.03B	29.49B	22.98B	21.47B
Cash Flow		Free Cash Flow
3.90B	1.89B	2.92B	2.34B	3.19B	2.91B
	Operating Cash Flow
9.14B	6.73B	6.46B	4.65B	5.71B	5.80B
	Investing Cash Flow
-6.40B	-4.18B	-5.92B	-2.44B	-4.70B	-4.00B
	Financing Cash Flow
-1.68B	-1.93B	-1.23B	-1.18B	-1.64B	-1.13B

Saab AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 487.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 487.25 is above the 20-day moving average (MA) of 462.75, above the 50-day MA of 434.69, and above the 200-day MA of 295.24, indicating a bullish trend. The MACD of 16.67 indicates Negative momentum. The RSI at 64.20 is Neutral, neither overbought nor oversold. The STOCH value of 79.92 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
ALFA	81 Outperform	kr168.27B	21.86	18.80%	2.10%	6.40%	18.28%
EPI.A	80 Outperform	kr246.87B	28.84		1.78%	7.22%	-2.59%
SAAB.B	78 Outperform	kr266.16B	56.99	13.06%	0.37%	20.34%	35.97%
ATCO.B	78 Outperform	kr721.17B	22.62	27.15%	2.15%	0.54%	1.79%
SAND	77 Outperform	kr261.16B	17.73	15.81%	2.79%	-1.09%	15.72%
HEXA.B	77 Outperform	kr257.16B	23.07	9.32%	1.61%	-1.12%	14.34%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%

Saab AB Corporate Events

Royal Thai Air Force Selects Saab’s Gripen E/F Fighter

The Royal Thai Air Force has selected Saab’s Gripen E/F as its new multi-role fighter, marking a significant step in their procurement process with Saab and the Swedish Defence Materiel Administration. Although no contract has been signed yet, the selection includes a long-term offset package aimed at enhancing Thailand’s national security and strategic independence, potentially creating jobs and investments across various sectors.

The most recent analyst rating on ($SE:SAAB.B) stock is a Hold with a SEK245.00 price target. To see the full list of analyst forecasts on Saab AB stock, see the SE:SAAB.B Stock Forecast page.

Saab’s Strategic Focus on Growth and Innovation at Capital Markets Day 2025

At its Capital Markets Day 2025, Saab announced strategic priorities aimed at future growth, including capacity expansion, digital transformation, and accelerated development of future capabilities. The company plans to scale up operations, focus on market expansion, and enhance its technological leadership through partnerships and mergers. Saab’s commitment to innovation and empowering its workforce positions it well for capturing market opportunities and achieving sustainable value creation.

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.