Safran SA SAF

Morningstar Rating

Company Report

Safran: Strong Set of Results, We Mantain Our Valuation Driven by Narrowbody Deliveries

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aviation, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the COVID-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.

Price vs Fair Value

SAF is trading at a 520% premium.
Price
€210.40
Fair Value
€133.00
Uncertainty
Medium
1-Star Price
€589.00
5-Star Price
€456.00
Economic Moat
Rwd
Capital Allocation
Tbbjxjnw

Bulls Say, Bears Say

Bulls

Supplying 75% of global narrow-body engines, Safran is well positioned to capitalize on long-term structural industry growth.

Bears

Demand and order recovery for the 737 MAX remains uncertain, casting doubt on Leap engine delivery and break-even targets.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
30.71
Price/Sales
3.54
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.05%
Total Yield
2.38%

Company Profile

Safran is a key player in the global commercial and military aerospace propulsion and equipment sectors. The group has three reportable segments: aerospace propulsion (commercial and military aircraft engines and spare parts); aircraft equipment, defense, and aerosystems (diversified business supplying components ranging from landing gear to avionics); and aircraft interiors (seats, cabins, and in-flight entertainment systems). Safran is a partner to the CFM joint venture with GE Aviation, which produces narrow-body engines.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Growth
Total Number of Employees
85,519

Competitors

Valuation

Metric
SAF
GE
RTX
Price/Earnings (Normalized)
30.7148.1823.45
Price/Book Value
7.8810.872.80
Price/Sales
3.543.742.35
Price/Cash Flow
23.4235.6528.96
Price/Earnings
SAF
GE
RTX

Financial Strength

Metric
SAF
GE
RTX
Quick Ratio
0.540.810.60
Current Ratio
0.881.140.99
Interest Coverage
14.805.502.40
Quick Ratio
SAF
GE
RTX

Profitability

Metric
SAF
GE
RTX
Return on Assets (Normalized)
4.78%2.95%4.49%
Return on Equity (Normalized)
21.62%16.76%11.30%
Return on Invested Capital (Normalized)
13.05%9.68%8.26%
Return on Assets
SAF
GE
RTX

Aerospace & Defense Industry Comparables

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