Safran SA
Safran SA Fundamental Analysis
Safran SA (SAFRY) shows strong financial fundamentals with a PE ratio of 20.18, profit margin of 23.05%, and ROE of 51.05%. The company generates $31.4B in annual revenue with strong year-over-year growth of 17.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SAFRY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSAFRY demonstrates superior asset utilization.
Valuation Score
ExcellentSAFRY trades at attractive valuation levels.
Growth Score
ModerateSAFRY shows steady but slowing expansion.
Financial Health Score
ModerateSAFRY shows balanced financial health with some risks.
Profitability Score
ExcellentSAFRY achieves industry-leading margins.
Key Financial Metrics
Is SAFRY Expensive or Cheap?
P/E Ratio
SAFRY trades at 20.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SAFRY's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values Safran SA at 9.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.67 times EBITDA. This signals the market has high growth expectations.
How Well Does SAFRY Make Money?
Net Profit Margin
For every $100 in sales, Safran SA keeps $23.05 as profit after all expenses.
Operating Margin
Core operations generate 13.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $51.05 in profit for every $100 of shareholder equity.
ROA
Safran SA generates $11.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Safran SA produces operating cash flow of $5.92B, showing steady but balanced cash generation.
Free Cash Flow
Safran SA generates strong free cash flow of $4.64B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
SAFRY converts 3.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How SAFRY Stacks Against Its Sector Peers
| Metric | SAFRY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.18 | 26.76 | Better (Cheaper) |
| ROE | 51.05% | 1300.00% | Weak |
| Net Margin | 23.05% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.40 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.90 | 10.68 | Weak Liquidity |
| ROA | 11.59% | -1545134.00% (disorted) | Strong |
SAFRY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Safran SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-128.15%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
55.40%
Industry Style: Cyclical, Value, Infrastructure
High Growth