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Saab AB Unsponsored ADR (SAABY)
OTHER OTC:SAABY
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Saab AB Unsponsored ADR
(OTC:SAABY)
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Rating:77Outperform
Price Target:
$35.00
▲(15.59% Upside)
Saab AB's overall stock score reflects strong financial performance and positive earnings call sentiment, indicating robust growth prospects. However, the high P/E ratio and low dividend yield suggest potential overvaluation, and technical indicators warn of possible short-term volatility.
Saab AB Unsponsored ADR (SAABY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.36B
Dividend Yield0.3%
Average Volume (3M)6.12K
Price to Earnings (P/E)64.5
Beta (1Y)0.39
Revenue Growth26.12%
EPS Growth46.11%
CountryUS
Employees25,369
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.15
Shares Outstanding1,067,695,600
10 Day Avg. Volume10,363
30 Day Avg. Volume6,122
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.93
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside15.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Saab AB Unsponsored ADR Business Overview & Revenue Model
Company DescriptionSaab AB is a Swedish aerospace and defense company that specializes in the development and production of advanced technology solutions for military and civilian applications. The company operates through various segments, including Defense and Security, which encompasses products such as fighter aircraft, submarine systems, and radar technology, as well as civil security solutions. Saab is known for its innovative engineering and commitment to sustainability, offering products that enhance the capabilities of armed forces as well as contributing to societal safety and security.
How the Company Makes MoneySaab AB generates revenue primarily through the sale of defense and security products and services. Key revenue streams include contracts for military aircraft, such as the Gripen fighter jet, and naval systems like submarines and surface vessels. The company also earns from maintenance, repair, and overhaul services, as well as providing training and simulation solutions to defense forces. Significant partnerships with governments and defense organizations, both in Sweden and internationally, contribute to long-term contracts and projects, which bolster revenue stability. Additionally, Saab participates in collaborative defense programs and joint ventures that further expand its market reach and product offerings.
Saab AB Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter with impressive growth in order intake and significant progress in the Dynamics segment. The company has upgraded its guidance, indicating confidence in continued growth. However, there are challenges such as negative cash flow and under-absorption in some segments. The overall market outlook remains positive with increased demand driven by geopolitical factors.Q2-2025 Updates
Positive Updates
Strong Order Intake
Order intake reached SEK 28 billion, showcasing a 32% growth compared to the same quarter last year. This performance was achieved without any exceptionally large contracts.
Dynamics Segment Growth
The Dynamics segment delivered an exceptional performance with a 72% growth compared to the same quarter last year.
Upgraded Guidance
Guidance has been upgraded with expected growth now between 16% to 20%, up from 12% to 16%, based on strong performance and demand.
Sustainability Achievements
Saab has reduced CO2 emissions by 34% compared to 2020, moving towards its Net Zero 2050 target.
Innovative AI Implementation
Successful implementation of an AI agent in the Gripen E aircraft, demonstrating advanced mission capabilities.
Positive Market Outlook
Continued strong demand in the market driven by geopolitical tensions and increased defense spending commitments by NATO countries.
Negative Updates
Negative Cash Flow
Despite improvements, the company reported a negative cash flow of SEK 1.2 billion for the first half of the year.
Under-absorption in Aeronautics
Aeronautics segment faced under-absorption and low production rates, particularly in the T-7 environment in Indiana.
Challenges in Saab Kockums
Saab Kockums is pulled down by the underwater systems business, which is yet to become profitable.
Company Guidance
In the recent call, Saab provided updated guidance reflecting a robust second quarter and first half of fiscal year 2025. The company increased its full-year sales growth guidance from 12%-16% to 16%-20%, driven by a strong order intake of approximately SEK 28 billion and substantial growth across its business areas, especially Dynamics, which saw a remarkable 72% increase in deliveries. The EBIT margin improved to over 10%, with Dynamics and Surveillance contributing significantly to this growth. Cash flow improved compared to last year, although it remains slightly negative, with expectations for a positive cash flow by year-end. Saab's backlog rose 8% year-over-year to SEK 198 billion, and the company remains confident in its ability to meet the growing market demand, supported by strategic investments in capacity and technology, including facilities in India and the U.S. The ongoing geopolitical tensions and NATO's defense spending commitments underscore the anticipated demand for Saab's defense products, with future opportunities in major markets such as Gripen and GlobalEye expected to drive further growth.Saab AB Unsponsored ADR Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 63.75B | 51.61B | 42.01B | 39.15B | 35.43B |
| Gross Profit | 13.66B | 11.26B | 8.89B | 8.21B | 5.68B |
| EBITDA | 8.49B | 7.21B | 5.25B | 4.81B | 1.77B |
| Net Income | 4.17B | 3.38B | 2.19B | 1.93B | 1.07B |
Balance Sheet | |||||
| Total Assets | 99.82B | 82.76B | 72.36B | 65.04B | 60.57B |
| Cash, Cash Equivalents and Short-Term Investments | 11.74B | 13.71B | 12.86B | 11.84B | 10.38B |
| Total Debt | 10.38B | 10.04B | 9.99B | 9.72B | 10.00B |
| Total Liabilities | 64.01B | 50.40B | 42.49B | 41.79B | 38.92B |
| Stockholders Equity | 35.50B | 32.03B | 29.49B | 22.98B | 21.47B |
Cash Flow | |||||
| Free Cash Flow | 1.89B | 2.92B | 2.34B | 3.19B | 2.91B |
| Operating Cash Flow | 6.73B | 6.46B | 4.65B | 5.71B | 5.80B |
| Investing Cash Flow | -4.18B | -5.92B | -2.44B | -4.70B | -4.00B |
| Financing Cash Flow | -1.93B | -1.23B | -1.18B | -1.64B | -1.13B |
Saab AB Unsponsored ADR Technical Analysis
Positive
30.28
Price Trends
27.96
Positive
26.62
Positive
21.27
Positive
Market Momentum
0.77
Negative
59.61
Neutral
69.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAABY, the sentiment is Positive. The current price of 30.28 is above the 20-day moving average (MA) of 29.05, above the 50-day MA of 27.96, and above the 200-day MA of 21.27, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 69.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAABY.
Saab AB Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $92.43B | 23.07 | 17.91% | 1.70% | 11.85% | 16.12% | |
77 Outperform | $32.36B | 64.47 | 13.59% | 0.30% | 26.12% | 46.11% | |
77 Outperform | $87.28B | 22.41 | 26.50% | 1.43% | -0.65% | 77.20% | |
75 Outperform | $55.64B | 33.20 | 8.90% | 1.60% | 2.93% | 43.29% | |
71 Outperform | $117.78B | 28.40 | 73.06% | 2.62% | 1.09% | -35.50% | |
65 Neutral | $56.17B | 176.87 | 14.00% | ― | 32.09% | 10.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SAABY
Saab AB Unsponsored ADR
30.28
19.38
177.80%
GD
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LHX
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LMT
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504.49
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-14.34%
NOC
Northrop Grumman
609.54
84.77
16.15%
AXON
Axon Enterprise
715.51
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70.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.