SafranMEX:SAFN 82 Return-on-Tangible-Equity is 399.41% as of Dec. 2025, which is 85% below its 10-year median of 2,668.62. 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 334 Aerospace & Defense companies, Safran ranks better than 99.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Safran's annualized net income for the quarter that ended in Dec. 2025 was MXN89,902 Mil. Safran's average shareholder tangible equity for the quarter that ended in Dec. 2025 was MXN22,509 Mil. Therefore, Safran's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 399.41%.
The historical rank and industry rank for Safran's Return-on-Tangible-Equity or its related term are showing as below:
MEX:SAFN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2668.62 Med: 2668.62 Max: 2668.62
Current: Negative Tangible Equity
During the past 13 years, Safran's highest Return-on-Tangible-Equity was 2,668.62%. The lowest was 2,668.62%. And the median was 2,668.62%.
MEX:SAFN's Return-on-Tangible-Equity is ranked better than 99.7% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs MEX:SAFN: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Safran Return-on-Tangible-Equity Related Terms
Safran Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Safran's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Safran's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Safran's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Safran's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 399.41% mean?
Safran (MEX:SAFN) has a Return-on-Tangible-Equity of 399.41% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Safran and its competitors. This is 85% below median its historical median of 2,668.62. Over the past decade, Safran's Return-on-Tangible-Equity has ranged from 2,668.62 to 2,668.62. According to the industry distribution chart, Safran ranks #1 out of 334 companies in the Aerospace & Defense industry, placing it in the top 0.3%.
Is Safran's Return-on-Tangible-Equity too high?
Safran's current Return-on-Tangible-Equity of 399.41% is 85% below median its 10-year median of 2,668.62. Over the past 10 years, this metric has ranged from a low of 2,668.62 to a high of 2,668.62. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Safran's value of 399.41% is 4773.8% above this industry median. Based on the distribution chart, Safran ranks #1 out of 334 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 Return-on-Tangible-Equity compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Safran ranks #1 out of 334 companies for Return-on-Tangible-Equity. This places Safran in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Safran's value of 399.41% is 4773.8% above this benchmark. Historically, Safran's own Return-on-Tangible-Equity has ranged from 2,668.62 to 2,668.62 over the past decade. While the company's 10-year median is 2,668.62 vs. the industry median of 8.20, 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 Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Safran's current Return-on-Tangible-Equity of 399.41% is 4773.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Safran and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safran's current Return-on-Tangible-Equity is 399.41%, which is 85% below median its own 10-year median of 2,668.62. 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 Return-on-Tangible-Equity is 399.41%, which is 85% below median its 10-year median of 2,668.62 and 4773.8% above the Aerospace & Defense industry median of 8.20. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Safran (MEX:SAFN), the current Return-on-Tangible-Equity is 399.41% 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:
Return-on-Tangible-Equity: 399.41% (85% below median its 10-year median of 2,668.62)
GF Value™: MXN5,094.96 vs. price of MXN5,885.43 (15.5% above fair value)
Industry Position: 4773.8% above the Aerospace & Defense median (#1 of 334)
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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