Saab AB Unsponsored ADR (SAABY) AI Stock Analysis

Saab AB Unsponsored ADR

(Other OTC:SAABY)

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Rating:75Outperform

Price Target:$37.00▲(11.14% Upside)

Action:reiterated

Date:10/24/26

The overall score of 75 reflects a company with excellent operational momentum and financial health, tempered by a demanding valuation. The most significant positive factors are the powerful earnings call, showcasing record orders and strong guidance, and the exceptional cash flow generation. These strengths are partially offset by the high P/E ratio, which introduces valuation risk, and a mixed technical picture that suggests the strong fundamental story may already be priced in.

Positive Factors

Backlog visibilityThe 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 dragThe 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.

Saab AB Unsponsored ADR (SAABY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $36.22B
Dividend Yield: 0.33%
Average Volume (3M): 66.21K
Price to Earnings (P/E): 46.8
Beta (1Y): 0.48
Revenue Growth: 38.73%
EPS Growth: 56.42%
Country: US
Employees: 27,865
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

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 orga...

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 design,...

Saab AB Unsponsored ADR Earnings Call Summary

Earnings Call Date:Oct 22, 2026(Q3-2026)|% Change Since:4.08%|Next Earnings Date:Feb 04, 2027

Earnings Call SentimentPositive

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.

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

Financial performance is robust, driven by exceptional cash flow generation (Score: 88) and a strong balance sheet (Score: 82). The TTM free cash flow surged 94.5%, and the debt-to-equity ratio is a conservative 0.29. Revenue growth is accelerating, and profitability is improving, though margins remain sensitive to project mix.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	92.87B	79.15B	63.75B	51.61B	42.01B	39.15B
Gross Profit	20.59B	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	7.53B	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

Technical Analysis SentimentPositive

Last Price33.29

Price Trends

50DMA31.53Positive

100DMA30.84Positive

200DMA32.08Positive

Market Momentum

MACD0.72Negative

RSI59.58Neutral

STOCH86.77Negative

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 33.29 is above the 20-day moving average (MA) of 31.85, above the 50-day MA of 31.53, and above the 200-day MA of 32.08, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SAABY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80Outperform	$100.81B	21.66	17.60%	1.68%	9.73%	10.46%
LMT	79Outperform	$147.14B	22.75	78.85%	2.15%	7.86%	57.22%
NOC	77Outperform	$79.21B	17.48	25.70%	1.72%	6.51%	14.02%
SAABY	75Outperform	$37.19B	46.77	15.83%	0.33%	38.73%	56.42%
LHX	75Outperform	$51.69B	25.88	10.17%	1.77%	7.33%	15.31%
AXON	67Neutral	$34.75B	171.40	5.92%	―	34.60%	-41.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

SAABY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SAABY	Saab AB Unsponsored ADR	33.40	5.97	21.76%
GD	General Dynamics	373.46	36.09	10.70%
LHX	L3harris Technologies	278.96	-7.41	-2.59%
LMT	Lockheed Martin	643.15	170.39	36.04%
NOC	Northrop Grumman Corp.	555.32	-12.56	-2.21%
AXON	Axon Enterprise, Inc.	425.43	-280.70	-39.75%

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.

Date of analysis: Oct 24, 2026

Saab AB Unsponsored ADR AI Stock Analysis