(SAF) Safran - Ratings and Ratios
Engines, Landing Gear, Nacelles, Seats, Avionics
Description: SAF Safran
Safran SA (ticker SAF) is a French aerospace and defense conglomerate operating worldwide through three core segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Propulsion unit supplies engines, gearboxes and related MRO services for commercial, military and unmanned aircraft, while the Equipment segment covers landing gear, brakes, nacelles, avionics, security and optronic systems. The Interiors business designs and manufactures seats, cabin furnishings, galley equipment and in-flight entertainment/connectivity solutions.
In FY 2023 Safran reported revenue of €22.5 billion, with the Aerospace Propulsion segment contributing roughly 55 % of total sales and delivering an operating margin of 9 %, reflecting the high-mix, high-margin nature of engine and MRO services. The company’s backlog stood at €30 billion, indicating a multi-year order pipeline that is roughly 1.3× annual revenue-a key indicator of future cash flow visibility.
Key economic drivers for Safran include the secular recovery of global air travel, which fuels demand for new aircraft and engine retrofits, and sustained defense spending in Europe and the United States that underpins the Equipment and Aerosystems segment. Additionally, the industry’s shift toward greener propulsion (e.g., hybrid-electric and sustainable-fuel-compatible engines) is prompting increased R&D investment, which Safran has allocated about 6 % of revenue to in the last year.
For a deeper quantitative view, the ValueRay platform offers a granular breakdown of Safran’s valuation multiples and scenario analysis.
SAF Stock Overview
| Market Cap in USD | 147,556m |
| Sub-Industry | Aerospace & Defense |
| IPO / Inception |
SAF Stock Ratings
| Growth Rating | 94.2% |
| Fundamental | 83.3% |
| Dividend Rating | 64.1% |
| Return 12m vs S&P 500 | 27.9% |
| Analyst Rating | - |
SAF Dividends
| Dividend Yield 12m | 0.96% |
| Yield on Cost 5y | 3.30% |
| Annual Growth 5y | 72.31% |
| Payout Consistency | 88.0% |
| Payout Ratio | 28.1% |
SAF Growth Ratios
| Growth Correlation 3m | 65.1% |
| Growth Correlation 12m | 91.2% |
| Growth Correlation 5y | 87.2% |
| CAGR 5y | 41.13% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.78 |
| CAGR/Mean DD 3y (Pain Ratio) | 14.12 |
| Sharpe Ratio 12m | 1.61 |
| Alpha | 27.99 |
| Beta | 1.098 |
| Volatility | 19.90% |
| Current Volume | 401.7k |
| Average Volume 20d | 499.6k |
| Stop Loss | 293.7 (-3%) |
| Signal | 1.04 |
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income (5.96b TTM) > 0 and > 6% of Revenue (6% = 3.31b TTM) |
| FCFTA 0.13 (>2.0%) and ΔFCFTA 5.29pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -4.54% (prev -9.00%; Δ 4.47pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 9.56b > Net Income 5.96b (YES >=105%, WARN >=100%) |
| Net Debt (-1.59b) to EBITDA (8.33b) ratio: -0.19 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.93 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (417.9m) change vs 12m ago -3.82% (target <= -2.0% for YES) |
| Gross Margin 40.83% (prev 22.19%; Δ 18.64pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 105.6% (prev 64.69%; Δ 40.92pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 32.28 (EBITDA TTM 8.33b / Interest Expense TTM 168.0m) >= 6 (WARN >= 3) |
Altman Z'' 0.96
| (A) -0.04 = (Total Current Assets 34.97b - Total Current Liabilities 37.47b) / Total Assets 56.09b |
| (B) 0.09 = Retained Earnings (Balance) 5.04b / Total Assets 56.09b |
| (C) 0.10 = EBIT TTM 5.42b / Avg Total Assets 52.18b |
| (D) 0.24 = Book Value of Equity 10.31b / Total Liabilities 42.31b |
| Total Rating: 0.96 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 83.27
| 1. Piotroski 8.0pt = 3.0 |
| 2. FCF Yield 5.93% = 2.96 |
| 3. FCF Margin 13.40% = 3.35 |
| 4. Debt/Equity 0.39 = 2.43 |
| 5. Debt/Ebitda -0.19 = 2.50 |
| 6. ROIC - WACC (= 22.41)% = 12.50 |
| 7. RoE 51.04% = 2.50 |
| 8. Rev. Trend 66.12% = 4.96 |
| 9. EPS Trend -18.65% = -0.93 |
What is the price of SAF shares?
Over the past week, the price has changed by -0.07%, over one month by +6.69%, over three months by +8.14% and over the past year by +46.87%.
Is Safran a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SAF is around 374.52 EUR . This means that SAF is currently undervalued and has a potential upside of +23.69% (Margin of Safety).
Is SAF a buy, sell or hold?
What are the forecasts/targets for the SAF price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 313.2 | 3.4% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 422.1 | 39.4% |
SAF Fundamental Data Overview
Market Cap EUR = 126.49b (126.49b EUR * 1.0 EUR.EUR)
P/E Trailing = 29.332
P/E Forward = 29.1545
P/S = 4.3059
P/B = 9.5813
P/EG = 1.7842
Beta = 1.098
Revenue TTM = 55.10b EUR
EBIT TTM = 5.42b EUR
EBITDA TTM = 8.33b EUR
Long Term Debt = 2.11b EUR (from longTermDebt, last quarter)
Short Term Debt = 2.43b EUR (from shortTermDebt, last quarter)
Debt = 5.12b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.59b EUR (from netDebt column, last quarter)
Enterprise Value = 124.62b EUR (126.49b + Debt 5.12b - CCE 6.99b)
Interest Coverage Ratio = 32.28 (Ebit TTM 5.42b / Interest Expense TTM 168.0m)
FCF Yield = 5.93% (FCF TTM 7.39b / Enterprise Value 124.62b)
FCF Margin = 13.40% (FCF TTM 7.39b / Revenue TTM 55.10b)
Net Margin = 10.81% (Net Income TTM 5.96b / Revenue TTM 55.10b)
Gross Margin = 40.83% ((Revenue TTM 55.10b - Cost of Revenue TTM 32.61b) / Revenue TTM)
Gross Margin QoQ = 51.08% (prev 45.93%)
Tobins Q-Ratio = 2.22 (Enterprise Value 124.62b / Total Assets 56.09b)
Interest Expense / Debt = 1.09% (Interest Expense 56.0m / Debt 5.12b)
Taxrate = 28.71% (2.06b / 7.17b)
NOPAT = 3.87b (EBIT 5.42b * (1 - 28.71%))
Current Ratio = 0.93 (Total Current Assets 34.97b / Total Current Liabilities 37.47b)
Debt / Equity = 0.39 (Debt 5.12b / totalStockholderEquity, last quarter 13.22b)
Debt / EBITDA = -0.19 (Net Debt -1.59b / EBITDA 8.33b)
Debt / FCF = -0.22 (Net Debt -1.59b / FCF TTM 7.39b)
Total Stockholder Equity = 11.68b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.62% (Net Income 5.96b / Total Assets 56.09b)
RoE = 51.04% (Net Income TTM 5.96b / Total Stockholder Equity 11.68b)
RoCE = 39.34% (EBIT 5.42b / Capital Employed (Equity 11.68b + L.T.Debt 2.11b))
RoIC = 32.11% (NOPAT 3.87b / Invested Capital 12.04b)
WACC = 9.70% (E(126.49b)/V(131.61b) * Re(10.06%) + D(5.12b)/V(131.61b) * Rd(1.09%) * (1-Tc(0.29)))
Discount Rate = 10.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.15%
[DCF Debug] Terminal Value 75.17% ; FCFE base≈5.95b ; Y1≈7.34b ; Y5≈12.53b
Fair Price DCF = 360.7 (DCF Value 150.59b / Shares Outstanding 417.5m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: -18.65 | EPS CAGR: -30.38% | SUE: 0.0 | # QB: 0
Revenue Correlation: 66.12 | Revenue CAGR: 25.86% | SUE: 0.10 | # QB: 0