Saab AB Class B SAAB B

Morningstar Rating
SEK 646.50 +11.60 (1.83%)
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Company Report

Saab: Capacity Expansion Supports Record Defense Backlog Conversion

With approximately 95% of its revenue from the defense sector, Saab is well positioned to capitalize on the expected increase in European core defense budgets to 3.5% of gross domestic product. This increase, coupled with EU initiatives to enhance defense capabilities through resource pooling and procurement coordination, presents significant growth opportunities for the company. Saab should realize increased demand for its support weapons, sensor systems, airborne early warning, and surface radar systems, with expectations for further growth as European nations replenish their military inventories.

Price vs Fair Value

SAAB B is trading at a LOCK|<>L>Z< premium.
Price
SEK 646.50
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Saab is well positioned to capitalize on growth in European defense budgets in the next five years.

Bears

Saab's sales depend on military funding, where contracts are awarded in an inherently political and uncertain process.

Trading Information

Previous Close Price
SEK 634.90
Day Range
SEK 624.00–652.80
52-Week Range
SEK 445.10–748.80
Bid/Ask
SEK 644.70 / SEK 645.10
Shares Outstanding
539.05M
Market Cap
SEK 348.24B
Volume/Avg
2M / 1M

Key Statistics

Price/Earnings (Normalized)
41.47
Price/Sales
3.76
Dividend Yield (Trailing)
0.37%
Dividend Yield (Forward)
0.37%
Dividend Payment Schedule
Apr, Oct
Total Yield
0.37%

Company Profile

Saab supplies products and services for military, defense, and civil security. The company operates in four segments: aeronautics, dynamics, surveillance, and Kockums. Aeronautics involves the manufacturing and support of defense and commercial aerial systems. Dynamics produces combat weapons and defense training and management systems. Surveillance supplies security services, and creates traffic management technology and aviation parts. Kockums offers solutions for naval missions. Over three fourths of Saab’s sales are from the defense sector. The company sells to multiple geographic regions, but over half of its sales come from Europe.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Growth
Total Number of Employees
28,667

Competitors

Valuation

Metric
SAAB B
AM
LDO
Price/Earnings (Normalized)
41.4722.7622.52
Price/Book Value
6.703.522.90
Price/Sales
3.762.671.36
Price/Cash Flow
29.4921.5712.51
Price/Earnings
SAAB B
AM
LDO

Financial Strength

Metric
SAAB B
AM
LDO
Quick Ratio
0.840.430.49
Current Ratio
1.221.050.90
Interest Coverage
22.05208.94271.29
Quick Ratio
SAAB B
AM
LDO

Profitability

Metric
SAAB B
AM
LDO
Return on Assets (Normalized)
5.92%3.55%4.62%
Return on Equity (Normalized)
16.52%18.22%17.06%
Return on Invested Capital (Normalized)
12.66%16.98%17.92%
Return on Assets
SAAB B
AM
LDO

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