Dassault Aviation (AM) AI Stock Analysis

• Market Cap: €21.76B
• Dividend Yield: 1.72%
• Average Volume (3M): 60.40K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.59
• Revenue Growth: 29.91%
• EPS Growth: -2.24%
• Country: FR
• Employees: 14,589
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 4.94
• Shares Outstanding: 78,397,030
• 10 Day Avg. Volume: 44,253
• 30 Day Avg. Volume: 60,404
• PEG Ratio: 0.45
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €304.40
• Price Target Upside: 10.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €308.00 ▲(11.92% Upside)

Dassault Aviation's overall stock score is driven primarily by its strong financial performance, characterized by high profitability and efficient cash management. Technical analysis presents mixed signals, with some bearish momentum. The valuation is moderate, with a reasonable P/E ratio and dividend yield. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Dassault Aviation's products, enhancing its market position and long-term profitability.

Cash Generation

Robust cash generation supports operational flexibility and strategic investments, ensuring financial stability and growth potential.

Low Leverage

Low leverage reduces financial risk, providing Dassault Aviation with greater resilience and capacity to invest in growth opportunities.

Negative Factors

EPS Decline

Declining EPS growth may indicate challenges in profitability, potentially affecting investor confidence and future earnings potential.

Equity Base

A moderate equity base suggests limited financial buffer, which could constrain the company's ability to withstand economic downturns or invest aggressively.

Operational Efficiency

While operational efficiency is solid, there is room for improvement to enhance profitability and competitive positioning in the aerospace sector.

Dassault Aviation Business Overview & Revenue Model

Company Description

Dassault Aviation Société anonyme designs and builds military aircraft, business jets, and space systems in France, the Americas, and internationally. It offers Rafale, a multirole fighter aircraft; nEUROn, an unmanned combat air vehicle; and Falcon aircraft for maritime surveillance, intelligence, and medical evacuation missions. The company operates a fleet of 2,100 Falcon jets and 1,000 fighter aircraft. In addition, it provides aviation maintenance and training services; repairs and maintains landing gears and flight controls; overhauls and repairs civil aviation equipment; leases and manages Falcon aircraft as part of public passenger transport activity; and designs, produces, and distributes simulation tools. The company was founded in 1916 and is headquartered in Paris, France. Dassault Aviation Société anonyme is a subsidiary of Groupe Industriel Marcel Dassault S.A.

How the Company Makes Money

Dassault Aviation generates revenue through multiple streams, primarily from the sale of military and civilian aircraft. The military segment includes contracts for fighter jets and UAVs, often secured through government procurement processes. The civil aviation sector generates income from the sale of business jets and associated services. Additionally, the company earns money from after-sales services, including maintenance, repair, and overhaul (MRO) services for its aircraft. Significant partnerships with defense ministries and private corporations enhance its revenue potential, as do collaborative projects with other aerospace firms and technology providers. Furthermore, ongoing research and development in advanced aerospace technologies contribute to long-term growth and profitability.

Dassault Aviation Financial Statement Overview

Summary

Dassault Aviation demonstrates strong financial performance with high profitability, efficient cash generation, and stable leverage. The income statement shows significant improvements in net profit margin and revenue growth. The balance sheet reflects low leverage and effective use of equity, while cash flow analysis indicates robust cash conversion and management.

Income Statement

Dassault Aviation's income statement reflects strong profitability with a Gross Profit Margin of 100% in the latest year, indicating efficient cost management. The company also reported a Net Profit Margin of 14.8% for the same period, a significant improvement from the previous year, driven by steady revenue growth of 29.9%. EBIT and EBITDA margins stand at 8.5% and 10.7%, respectively, showcasing solid operational efficiency. Despite some fluctuations in annual revenue, the overall trajectory remains positive, signaling robust financial health.

Balance Sheet

The balance sheet of Dassault Aviation appears stable with a Debt-to-Equity Ratio of 0.04, indicating low leverage and reduced financial risk. The Return on Equity (ROE) is 14.6%, highlighting effective use of shareholder funds to generate profit. However, the Equity Ratio is 21.7%, which suggests a relatively moderate equity base compared to total assets, indicating potential room for strengthening equity positions. Overall, the company maintains a solid financial position with manageable liabilities.

Cash Flow

Cash flow analysis reveals a strong performance with a Free Cash Flow of €1.54 billion, reflecting significant cash generation from operations. The Operating Cash Flow to Net Income Ratio suggests robust cash conversion efficiency. Additionally, the Free Cash Flow to Net Income Ratio is favorable, indicating that the company effectively translates its earnings into cash. Despite occasional volatility in cash flow growth rates, the overall cash management remains strong, supporting long-term financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.57B	6.24B	4.80B	6.95B	7.25B	5.49B
Gross Profit	3.43B	2.36B	1.80B	601.05M	956.24M	125.45M
EBITDA	694.17M	666.33M	1.01B	773.54M	691.13M	445.09M
Net Income	782.07M	923.82M	693.40M	716.23M	605.39M	302.76M
Balance Sheet
Total Assets	32.13B	29.11B	23.49B	22.54B	16.22B	13.71B
Cash, Cash Equivalents and Short-Term Investments	9.57B	8.49B	7.37B	9.63B	4.98B	3.56B
Total Debt	203.75M	237.76M	262.44M	233.65M	226.35M	270.41M
Total Liabilities	25.94B	22.78B	17.75B	16.53B	10.92B	9.15B
Stockholders Equity	6.19B	6.33B	5.74B	6.01B	5.30B	4.56B
Cash Flow
Free Cash Flow	1.24B	1.54B	-1.02B	4.93B	1.49B	-1.04B
Operating Cash Flow	1.49B	1.88B	-672.61M	5.11B	1.66B	-565.23M
Investing Cash Flow	-208.72M	-1.26B	-877.83M	-4.89B	-213.64M	-484.69M
Financing Cash Flow	-473.24M	-479.65M	-964.51M	-299.36M	-159.54M	250.64M

Dassault Aviation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 275.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AM, the sentiment is Neutral. The current price of 275.2 is below the 20-day moving average (MA) of 276.19, below the 50-day MA of 280.10, and below the 200-day MA of 282.80, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 26.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:AM.

Dassault Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	76 Outperform	$164.67B	32.43	22.66%	1.43%	7.05%	54.98%
HO	73 Outperform	€50.76B	74.28	14.51%	1.53%	11.16%	-50.57%
FII	73 Outperform	€2.11B	33.66	6.49%	0.84%	9.17%	12.78%
AM	71 Outperform	€21.76B	27.87	12.93%	1.72%	29.91%	-2.24%
SAF	67 Neutral	€129.07B	29.97	35.36%	0.94%	14.19%	161.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EXA	56 Neutral	€1.40B	1,006.17	1.12%	―	29.80%	―