Safran SAF.PA
Safran is a French industrial group that designs and manufactures aircraft engines, landing gear, and propulsion systems for the aerospace and defense sectors, with a business model based on the sale of equipment and high-value-added maintenance services. Safran shows solid financial health (net cash, ND/EBITDA -0.26) and a robust competitive moat (ROIC 24.99%, ROE 27.49%), with 16% revenue growth supported by strong LEAP engine demand. However, valuation is demanding (P/E 36.11) and earnings growth fell 65.1%, weighing on the growth score.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Safran is a French industrial group that designs and manufactures aircraft engines, landing gear, and propulsion systems for the aerospace and defense sectors, with a business model based on the sale of equipment and high-value-added maintenance services. Safran shows solid financial health (net cash, ND/EBITDA -0.26) and a robust competitive moat (ROIC 24.99%, ROE 27.49%), with 16% revenue growth supported by strong LEAP engine demand. However, valuation is demanding (P/E 36.11) and earnings growth fell 65.1%, weighing on the growth score.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.3 |
| Quality / Moat | 8.1 |
| Valuation | 3.2 |
| Growth | 4.5 |
| Dividend | 5.6 |
| Momentum | 6.8 |
| Risk & Context | 5.3 |
OVERALL SCORE: 5.9/10
Context and risks
Geopolitical risk from exposure to the titanium and components supply chain, with potential disruptions due to tensions on maritime routes. Additionally, the ECB's rate hike makes debt refinancing more expensive, though Safran has net cash, limiting the impact.
News considered in the analysis
- Exclusive-Boeing set to salvage delayed Turkish Airlines order, sources say — Refuerza la demanda de motores LEAP de CFM (joint venture de Safran) al asegurar pedidos de Boeing, aunque el impacto directo es moderado y parcialmente descontado.
- Can RTX's GTF Aftermarket Expansion Boost Its Growth Outlook? — Análisis de un competidor (RTX) sin información nueva sobre Safran; ruido sectorial.
- Amazon books 6 more Arianespace launches for Kuiper satellites — Arianespace es participada por Safran; nuevos lanzamientos refuerzan ingresos futuros en el segmento espacial, aunque es una parte menor del negocio.
- GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus — Noticia sobre un competidor (GE Aerospace) y su proveedor; sin impacto directo en Safran.
- GE Aerospace's LEAP Engine Deliveries Jumped 41% This Year. Here's Why Boeing and Airbus Both Need That Number to Keep Climbing. — LEAP es el motor estrella de CFM (joint venture 50/50 de Safran y GE). El aumento del 41% en entregas confirma la fortaleza del programa y su demanda, beneficiando directamente a Safran.
Verdict: Hold; quality and revenue growth justify the premium, but valuation and the one-off earnings drop limit near-term upside.
Main risk: The 65.1% drop in earnings growth, if not one-off, could signal underlying issues in cash conversion or margins, despite solid revenue growth.
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