Buffett Brain · Research note
Score updated 29 Oct 2026
SAF.PA· Industrials
Safran SA
Safran's aerospace propulsion segment drives strong ROIC, but profitability volatility raises concerns about durability.
Buffett fit
Weak fit
Owner
39
Durability
27
Management
61
Price
54
Score updated 29 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Safran, we'd focus on stabilizing profitability, given the 5-year EPS max decline of 119.86%.
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Safran's durability is questionable due to its profitability volatility, as evidenced by a lack of consistent profitability over the past five years.
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Safran's management has been reducing share count at a CAGR of -1.49% over five years, which is positive.
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With a of 17.1 and an EV/ of 11.7, Safran's valuation appears reasonable but not a bargain.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 (TTM) of 38.7% is top-quintile in the sector.
- 2 of 46.9% exceeds the sector's top-quintile cutoff of 43.4%.
- 3Net margin of 23.0% is significantly higher than the sector's 13.9% top-quintile.
- 4Interest coverage ratio of 77.1 indicates strong ability to meet interest obligations.
Concerns
5- 15-year average of 10.6% is below the sector's top-quintile cutoff of 14.0%.
- 2 of 14.7% falls below the sector's top-quintile cutoff of 17.8%.
- 3Profitability volatility with at least one loss year in the past five years.
- 4/Net Income ratio of 0.55 raises questions about earnings quality.
Price history
$272+125.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Safran SA operates through three main segments: Aerospace Propulsion, Aircraft Equipment, Defense and Aerosystems, and Aircraft Interiors. The Aerospace Propulsion segment is a key driver, providing propulsion systems for various aircraft types. With a of 46.9%, the company is in the top quintile for its sector. However, the unit economics are challenged by a 5-year average of 10.6%, below the sector's top quintile.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 28, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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