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Saab AB Unsponsored ADR
(OTC:SAABY)
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Rating:74Outperform
Price Target:
$36.00
▲(6.89% Upside)
Action:Reiterated
Date:10/24/26
SAABY scores well on financial performance and the latest earnings call backdrop (strong growth, profitability improvement, record backlog and solid cash conversion), which are the largest drivers. The score is tempered by premium valuation (high P/E with a low dividend yield) and a only moderately bullish technical picture with near-overbought stochastic readings.
Positive Factors
Backlog visibility
The record backlog provides substantial multi-year revenue visibility and supports capacity planning across Saab’s business areas. A balanced delivery profile and rising near-term scheduled work can improve production utilization, customer confidence, and the durability of growth over the next several quarters.
Negative Factors
T-7 profitability drag
The T-7 program remains a recurring profitability burden because production has not yet reached the scale needed to absorb the West Lafayette facility and workforce. Continued tools, automation, training, and ramp-up spending could constrain Aeronautics margins over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog visibility
The record backlog provides substantial multi-year revenue visibility and supports capacity planning across Saab’s business areas. A balanced delivery profile and rising near-term scheduled work can improve production utilization, customer confidence, and the durability of growth over the next several quarters.
Read all positive factors
Saab AB Unsponsored ADR (SAABY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.34B
Dividend Yield0.34%
Average Volume (3M)37.85K
Price to Earnings (P/E)46.6
Beta (1Y)0.48
Revenue Growth38.73%
EPS Growth56.42%
CountryUS
Employees27,865
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)7.00
Shares Outstanding1,067,695,600
10 Day Avg. Volume0
30 Day Avg. Volume37,852
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)6.61
Price to Sales (P/S)3.62
P/FCF Ratio45.07
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit1.62
Enterprise Value/Ebitda2.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Saab AB Unsponsored ADR Business Overview & Revenue Model
Company Description
Saab AB (publ), a multinational company founded in 1937 and headquartered in Stockholm, Sweden, specializes in providing advanced products, services, and solutions. Its core markets are global military defense, aerospace, and civil security. The o...
How the Company Makes Money
Saab primarily makes money by selling defense and security products and delivering long-term services to government and institutional customers. Major revenue streams generally include: (1) Product and system sales: revenue from contracts to desig...
Saab AB Unsponsored ADR Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with substantial organic growth, record order intake, a SEK 364 billion backlog, improving group profitability, strong cash flow and major contract momentum across Gripen, GlobalEye, Naval and Surveillance. The main challenges were continued T-7 ramp-up costs, lower Dynamics and Naval margins, a tougher Surveillance comparison, higher quarterly emissions and ongoing supply-chain risks. Highlights significantly outweighed the lowlights.Positive Updates
Strong Nine-Month Organic Growth and EBIT Expansion
SAAB reported more than 27% organic growth during the first nine months of 2026, while EBIT increased 39%, which management described as a strong year.
Negative Updates
T-7 Program Continues to Weigh on Aeronautics
The T-7 program continues to negatively affect Aeronautics profitability through under-absorption and ramp-up costs. The negative impact is now slightly above the previously guided SEK 100 million per quarter and approximately SEK 500 million on a yearly basis.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Nine-Month Organic Growth and EBIT Expansion
SAAB reported more than 27% organic growth during the first nine months of 2026, while EBIT increased 39%, which management described as a strong year.
Read all positive updates
Company Guidance
Saab remains confident in its targets for the period 2023-2027 and continues to guide for cash conversion above 60%; it expects a strong cash flow to end this year, a solid end of the year for Dynamics, and Surveillance faces a more challenging comparison period. Aeronautics production is planned to increase from roughly 15 aircrafts per year to between 25 and 30 aircraft per year, while T-7 production is expected to reach somewhere between 50-80 systems per year depending on contracts; T-7 is currently having a negative impact of slightly above SEK 100 million per quarter, or roughly SEK 500 million on a yearly basis, and excluding T-7 Aeronautics is on the level of high single-digit numbers. Surveillance is planned to increase from two aircraft per year to six aircraft per year. Capacity investments are above SEK 8 billion a year, might still have a rather high level also the coming year at least, might be the peak levels that we see 2026, 2027, and then we might come down a bit.Saab AB Unsponsored ADR Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.56B | 79.15B | 63.75B | 51.61B | 42.01B | 39.15B |
| Gross Profit | 20.52B | 17.17B | 13.66B | 11.26B | 8.89B | 8.21B |
| EBITDA | 11.56B | 10.10B | 8.49B | 7.21B | 5.25B | 4.81B |
| Net Income | 7.51B | 6.31B | 4.17B | 3.38B | 2.19B | 1.93B |
Balance Sheet | ||||||
| Total Assets | 153.38B | 124.70B | 99.82B | 82.76B | 72.36B | 65.04B |
| Cash, Cash Equivalents and Short-Term Investments | 21.91B | 15.36B | 11.74B | 13.47B | 12.86B | 11.84B |
| Total Debt | 18.26B | 14.71B | 10.38B | 10.04B | 10.01B | 9.72B |
| Total Liabilities | 100.33B | 81.03B | 64.01B | 50.40B | 42.51B | 41.79B |
| Stockholders Equity | 52.59B | 43.34B | 35.50B | 32.03B | 29.49B | 22.98B |
Cash Flow | ||||||
| Free Cash Flow | 12.90B | 6.36B | 1.89B | 2.92B | 2.34B | 3.19B |
| Operating Cash Flow | 21.31B | 12.11B | 6.73B | 6.46B | 4.65B | 5.71B |
| Investing Cash Flow | -16.81B | -11.64B | -4.18B | -5.92B | -2.44B | -4.70B |
| Financing Cash Flow | 1.61B | 647.00M | -1.93B | -1.23B | -1.18B | -1.64B |
Saab AB Unsponsored ADR Technical Analysis
Positive
33.68
Price Trends
31.72
Positive
30.55
Positive
32.18
Positive
Market Momentum
0.39
Negative
60.05
Neutral
85.11
Negative
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 33.68 is above the 20-day moving average (MA) of 31.15, above the 50-day MA of 31.72, and above the 200-day MA of 32.18, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 85.11 is Negative, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $35.34B | 46.60 | 15.83% | 0.34% | 38.73% | 56.42% | |
74 Outperform | $96.60B | 21.47 | 17.43% | 1.76% | 9.13% | 10.37% | |
73 Outperform | $146.73B | 22.47 | 78.85% | 2.17% | 7.86% | 57.22% | |
73 Outperform | $80.32B | 17.80 | 25.70% | 1.69% | 6.51% | 14.02% | |
71 Outperform | $48.46B | 26.13 | 9.41% | 1.90% | 7.29% | 10.75% | |
62 Neutral | $34.51B | 171.13 | 5.92% | ― | 34.60% | -41.72% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SAABY
Saab AB Unsponsored ADR
32.73
5.64
20.79%
GD
General Dynamics
357.04
9.56
2.75%
LHX
L3Harris Technologies
260.23
-26.16
-9.13%
LMT
Lockheed Martin
635.20
160.56
33.83%
NOC
Northrop Grumman
565.41
-20.98
-3.58%
AXON
Axon Enterprise
424.77
-324.23
-43.29%
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.