BN · rank #7 · 2026-10-26
SAF
PARIS · EUR · $126.02B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.09 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +10.3% |
| Forward net margin Consensus forward net margin. | +12.9% |
| Net margin TTM Trailing twelve month net margin. | +11.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.85 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.55× |
| Analyst upside Spread between the consensus 12m target and the current price. | +40.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | — |
| Market cap (USD) | $126.02B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Safran is a French aerospace and defense conglomerate whose core earnings engine is the CFM International LEAP narrowbody turbofan, sold and serviced across a 12,900+ engine backlog with sole-source positions on the 737 MAX and C919.
Rationale
The bottleneck-solver signal is directly reinforced by Safran's structural chokepoint in narrowbody propulsion—LEAP's sole-source positions, 41% H1 delivery growth, and mid-twenties spare-parts dollar growth confirm durable, backlog-anchored revenue visibility rather than sentiment rotation.
Material risks
- 1Airbus and Boeing OEM production-rate ceilings, compounded by tier-2/3 shortages in castings, forgings, and turbine blades, can hard-cap LEAP deliveries and delay earnings recognition even as airline demand remains unconstrained—directly threatening the throughput thesis.
- 2The LEAP-1B next-generation blade's uncertain entry-into-service timing introduces a specific near-term earnings-recognition risk that management has already flagged, and Pratt & Whitney's Airbus GTF recovery could gradually erode CFM's non-exclusive A320neo share over the medium term.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.