Dassault Aviation (AM) AI Stock Analysis

• Market Cap: €22.00B
• Dividend Yield: 1.67%
• Average Volume (3M): 63.75K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.60
• 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: 94,176
• 30 Day Avg. Volume: 63,753
• 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: €310.71
• Price Target Upside: 10.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: €315.00 ▲(11.78% Upside)

Dassault Aviation's strong financial performance, characterized by robust profitability and cash flow generation, is the primary driver of the stock score. Technical analysis indicates a neutral trend, while the valuation suggests the stock is priced for growth, albeit at a high P/E ratio. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Negative Factors

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 financial leverage. The income statement shows a significant improvement in net profit margin and steady revenue growth. The balance sheet indicates low leverage with a solid debt-to-equity ratio, while cash flow analysis highlights robust cash conversion efficiency.

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: 281.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 281.8 is above the 20-day moving average (MA) of 281.50, above the 50-day MA of 276.16, and above the 200-day MA of 270.13, indicating a bullish trend. The MACD of 2.59 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.52 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	153.41B	31.04	21.39%	1.56%	5.12%	59.43%
HO	73 Outperform	52.67B	77.07	18.89%	1.44%	11.16%	-50.57%
AM	73 Outperform	€22.00B	28.63	12.93%	1.67%	29.91%	-2.24%
FII	72 Outperform	2.12B	33.80	―	0.85%	9.17%	12.78%
SAF	67 Neutral	121.94B	28.31	-6.55%	0.99%	14.19%	161.87%
EXA	66 Neutral	1.58B	1,123.30	-3.04%	―	29.80%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%