SafranMEX:SAFN 82 Gross Margin % is 43.39% as of Dec. 2025, which is 7% below its 10-year median of 46.84. GuruFocus rates MEX:SAFN with a GF Score™ of 82/100 and a GF Value™ of MXN5,094.96 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 342 Aerospace & Defense companies, Safran ranks better than 77.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Safran's Gross Profit for the
six
months ended in Dec. 2025 was MXN149,338 Mil. Safran's Revenue for the
six
months ended in Dec. 2025 was MXN344,175 Mil. Therefore, Safran's Gross Margin % for the quarter that ended in Dec. 2025 was 43.39%.
The historical rank and industry rank for Safran's Gross Margin % or its related term are showing as below:
MEX:SAFN'
s Gross Margin % Range Over the Past 10 Years
Min: 42.93 Med: 46.84 Max: 48.85
Current: 46.92
During the past 13 years, the highestGross Margin % of Safran was 48.85%. The lowest was 42.93%. And the median was 46.84%.
MEX:SAFN's Gross Margin % is ranked better than 77.19% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs MEX:SAFN: 46.92
Safran had a gross margin of 43.39% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Safran was 0.20% per year.
Safran (MEX:SAFN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Safran had a gross margin of 43.39% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Safran Gross Margin % Related Terms
Safran Gross Margin % Historical Data
* Premium members only.
The historical data trend for Safran's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:SAFN vs GE, RTX, BA: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Safran's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Safran Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Safran's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Safran's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Safran (MEX:SAFN) has a Gross Margin % of 43.39% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Safran and its competitors. This is near median its historical median of 46.84. Over the past decade, Safran's Gross Margin % has ranged from 42.93 to 48.85. According to the industry distribution chart, Safran ranks #78 out of 342 companies in the Aerospace & Defense industry, placing it in the top 22.8%.
Is Safran's Gross Margin % too high?
Safran's current Gross Margin % of 43.39% is near median its 10-year median of 46.84. Over the past 10 years, this metric has ranged from a low of 42.93 to a high of 48.85. The Aerospace & Defense industry median Gross Margin % is 26.65. Safran's value of 43.39% is 62.8% above this industry median. Based on the distribution chart, Safran ranks #78 out of 342 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Safran has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safran's Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Safran ranks #78 out of 342 companies for Gross Margin %. This places Safran in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.65. Safran's value of 43.39% is 62.8% above this benchmark. Historically, Safran's own Gross Margin % has ranged from 42.93 to 48.85 over the past decade. While the company's 10-year median is 46.84 vs. the industry median of 26.65, Safran has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Safran's current Gross Margin % of 43.39% is 62.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Safran and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safran's current Gross Margin % is 43.39%, which is near median its own 10-year median of 46.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safran stock overvalued right now?
Based on GuruFocus' analysis, Safran (MEX:SAFN) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN5,094.96, compared to a current price of MXN5,885.43 — trading 15.5% above its estimated fair value. The current Gross Margin % is 43.39%, which is near median its 10-year median of 46.84 and 62.8% above the Aerospace & Defense industry median of 26.65. Safran's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Safran (MEX:SAFN), the current Gross Margin % is 43.39% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Safran (MEX:SAFN) Overvalued in 2026?
Based on GuruFocus' analysis, Safran stock appears to be overvalued.
The current stock price of MXN5,885.43 is trading 15.5% above its estimated GF Value™ of MXN5,094.96.
GuruFocus considers Safran to be Modestly Overvalued.
Key valuation signals for MEX:SAFN:
Gross Margin %: 43.39% (near median its 10-year median of 46.84)
GF Value™: MXN5,094.96 vs. price of MXN5,885.43 (15.5% above fair value)
Industry Position: 62.8% above the Aerospace & Defense median (#78 of 342)
No single metric tells the full story. See the MEX:SAFN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safran is a key player in the global commercial and military aerospace propulsion and equipment sectors. The group has three reportable segments: aerospace propulsion (commercial and military aircraft engines and spare parts); aircraft equipment, defense, and aerosystems (diversified business supplying components ranging from landing gear to avionics); and aircraft interiors (seats, cabins, and in-flight entertainment systems). Safran is a partner to the CFM joint venture with GE Aviation, which produces narrow-body engines.
82GF Score
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