AI Spotlight on SAF
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.
Market Data
Last Price | 238.4 |
Change Percentage | 0.29% |
Open | 237.9 |
Previous Close | 237.7 |
Market Cap ( Millions) | 99353 |
Volume | 470409 |
Year High | 239.7 |
Year Low | 170.2 |
M A 50 | 218.56 |
M A 200 | 208.78 |
Financial Ratios
FCF Yield | 3.33% |
Dividend Yield | 0.92% |
ROE | 14.06% |
Debt / Equity | 45.45% |
Net Debt / EBIDTA | -10.68% |
Price To Book | 9.14 |
Price Earnings Ratio | 62.62 |
Price To FCF | 30.07 |
Price To sales | 3.85 |
EV / EBITDA | 17.58 |
News
- Jan -28 - 3 Stocks That May Be Trading Below Estimated Value In January 2025
- Jan -22 - Safran India eyes 70% revenue boost from Gaganyaan space flight, other space, defence deals
- Dec -30 - 3 Stocks That May Be Priced Below Their Estimated Intrinsic Value
- Dec -09 - GE Stock Sold Off on Safran's Outlook. The Shares Are a Buy, Says Bernstein.
- Dec -09 - Analysis-To Europe's economic malaise, add a leadership void
- Nov -22 - 3 Stocks Estimated To Be Trading At Discounts Up To 46.9%
- Nov -06 - Safran appoints new CEOs for its Aircraft Engines, Electrical & Power units
- Oct -29 - Safran in major engine repair capacity expansion as demand soars
- Oct -25 - Safran Raises 2024 Income Guidance as Revenue Rises
- Oct -25 - Safran makes mixed changes to forecasts after jet engine delays
- Oct -25 - Safran raises profit target after 9-month sales grow 17%
- Oct -14 - Euronext Paris Stocks Including Safran Believed To Be Trading Below Intrinsic Value Estimates
- Oct -09 - 5 Low-Leverage Stocks to Buy Buoyed by Impressive Tech Earnings
- Oct -04 - RTX's Arm Opens $255M Worth Military Engine Facility in Oklahoma
- Sep -26 - 3 Euronext Paris Stocks Estimated To Be Trading Up To 49.2% Below Intrinsic Value
- Sep -11 - Euronext Paris Stocks Trading Below Intrinsic Value By Up To 36.1%
- Sep -10 - RTX sees labor challenges, exploring alternatives to China suppliers
- Sep -09 - Safran in talks with MBDA over Roxel's stake, La Tribune reports
- Sep -02 - Safran buys AI firm Preligens for 220 million euros
- Aug -27 - 3 Stocks On Euronext Paris That Might Be Undervalued
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Aerospace Propulsion
Expected Growth : 10 %
What the company do ?
Aerospace Propulsion from Safran SA designs and manufactures rocket engines and satellite propulsion systems for space launch vehicles and satellites.
Why we expect these perspectives ?
Safran SA's Aerospace Propulsion segment growth is driven by increasing demand for fuel-efficient engines, rising global air traffic, and growing military expenditures. Additionally, the company's investments in electric and hybrid propulsion technologies, as well as its partnerships with major OEMs, position it for long-term growth.
Segment n°2 -> Aircraft Equipment, Defense and Aerosystems
Expected Growth : 9 %
What the company do ?
Aircraft Equipment, Defense and Aerosystems from Safran SA provides avionics, optronics, and electronic systems for military and civil aircraft, as well as defense and security solutions.
Why we expect these perspectives ?
Safran's Aircraft Equipment, Defense and Aerosystems segment growth is driven by increasing demand for fuel-efficient aircraft, rising global defense spending, and growing adoption of advanced avionics and electronics. Additionally, the segment benefits from its strong backlog, strategic partnerships, and investments in digitalization and electrification.
Segment n°3 -> Aircraft Interiors
Expected Growth : 8 %
What the company do ?
Aircraft Interiors from Safran SA designs and manufactures cabin interiors, seats, and in-flight entertainment systems for commercial and business aircraft.
Why we expect these perspectives ?
Safran's Aircraft Interiors segment growth is driven by increasing demand for premium cabins, rising air travel, and growing need for lightweight, fuel-efficient interior solutions. Additionally, the company's strategic acquisitions, innovative products, and long-term contracts with major airlines contribute to its 8% growth rate.
Segment n°4 -> Currency Hedges
Expected Growth : 7 %
What the company do ?
Currency hedges from Safran SA refer to the financial instruments used to mitigate the risk of exchange rate fluctuations on the company's cash flows and earnings.
Why we expect these perspectives ?
Safran SA's 7% currency hedge growth driven by increasing demand for aircraft production, strong backlog of orders, and favorable currency exchange rates. Additionally, the company's diversification into helicopter and defense markets, as well as its cost reduction initiatives, contribute to its growth momentum.
Segment n°5 -> Holding Company and Other
Expected Growth : 6 %
What the company do ?
Safran SA's Holding Company segment includes corporate activities, while the Other segment comprises of various minor activities not attributed to any operating segment.
Why we expect these perspectives ?
Safran SA's Holding Company and Other segment growth of 6% is driven by increasing R&D investments, strategic acquisitions, and effective cost management. Additionally, the company's diversified portfolio and strong cash generation enable investments in digital transformation and innovation, further fueling growth.
Safran Sa Products
Product Range | What is it ? |
---|---|
Aircraft Engines | Safran designs and manufactures aircraft engines for commercial and military aircraft, including the CFM56 and LEAP engines. |
Helicopter Engines | Safran develops and produces helicopter engines, including the Arriel and Makila engines. |
Rocket Engines | Safran designs and manufactures rocket engines for launch vehicles, including the Ariane 5 and Vega rockets. |
Avionics | Safran develops and produces avionics systems, including flight control computers, navigation systems, and cockpit displays. |
Aerostructures | Safran designs and manufactures aircraft structural components, including wings, fuselages, and engine nacelles. |
Defense Electronics | Safran develops and produces defense electronics, including optronics, navigation systems, and communication systems. |
Biometric Identification | Safran develops and produces biometric identification solutions, including fingerprint, facial, and iris recognition systems. |
Cybersecurity | Safran develops and produces cybersecurity solutions, including threat detection, incident response, and security consulting services. |
Safran SA's Porter Forces
Threat Of Substitutes
Safran SA operates in the aerospace and defense industry, where the threat of substitutes is moderate. While there are some substitutes available, they are not easily accessible, and the company's products are highly specialized.
Bargaining Power Of Customers
Safran SA's customers are primarily governments and large corporations, which have limited bargaining power due to the specialized nature of the company's products.
Bargaining Power Of Suppliers
Safran SA relies on a diverse range of suppliers, which reduces the bargaining power of individual suppliers. However, some suppliers may have significant bargaining power due to their specialized products.
Threat Of New Entrants
The aerospace and defense industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants.
Intensity Of Rivalry
The aerospace and defense industry is highly competitive, with several established players competing for market share. Safran SA faces intense rivalry from companies such as Rolls-Royce, General Electric, and Pratt & Whitney.
Capital Structure
Value | |
---|---|
Debt Weight | 39.53% |
Debt Cost | 3.95% |
Equity Weight | 60.47% |
Equity Cost | 10.57% |
WACC | 7.95% |
Leverage | 65.36% |
Safran SA : Quality Control
Safran SA passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
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RHM.DE | Rheinmetall AG provides technologies to the mobility and security sectors worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and … |
AIR.PA | Airbus SE engages in the designing, manufacturing, and delivering aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus … |
RR.L | Rolls-Royce Holdings plc operates as an industrial technology company in the United Kingdom and internationally. The company operates in four segments: Civil Aerospace, Power Systems, Defence, and New Markets. The … |
HO.PA | Thales S.A. provides various solutions for civilian and military customers in the aeronautics, space, defense, security, ground transportation, and digital security markets worldwide. It operates through Aerospace, Transport, Defence & … |
BA.L | BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic … |