Saab AB (publ) logo

Saab AB (publ)

SAAB-B.ST
57
Aerospace & Defense · Industrials
Price
kr 521.60
-14.40 (-2.69%)
Market Cap
kr 276.36B
Exchange
Stockholm Stock Exchange
Winston Score
57
Winston looking curious
Winston is curious
A decent business — some strong pillars, some weaker.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Saab AB is a Swedish defense and security company that makes fighter jets, submarines, radar systems, missiles, and surveillance technology. Its most famous product is the Gripen fighter aircraft, used by air forces in Sweden, Brazil, South Africa, and several other countries. Saab also makes the Carl-Gustaf reusable rocket launcher, which is sold to dozens of militaries around the world, including the United States.

Saab earns money through long-term government contracts, selling weapons systems, and providing maintenance and support services to military customers. The company operates mainly in Europe but has a growing presence in the US, Australia, and other allied nations. Its deep ties to the Swedish government and NATO-aligned countries give it a stable customer base that is hard for competitors to displace. Rising defense budgets across Europe following Russia's invasion of Ukraine are a major growth driver, though Saab faces the risk of production bottlenecks as it tries to scale up output quickly to meet surging demand.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+21.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+12.7% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$3.6B/ year

Rising (+29% vs prior year)

4.6% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

30.1%ownership

Insiders own a meaningful stake in the company

Cash Runway

5+ years

Quarterly Free Cash Flow

↑ Burn rate improving

$4.0B cash & investments at current burn rate

Winston looking curious
Growth context

Saab AB (publ) is growing revenue at 21% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
23.4%
Thin — 23.4% gross margin
Operating Margin
10.0%
Modest — 10.0% operating margin
ROCE
3.5%
Weak — 3.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+26.3%
Fast-growing sales (26.3% YoY)
EPS YoY
+38.1%
Earnings growing fast (38.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
196%
Turns 196% of profit into real cash
FCF Margin
6.6%
Modest free cash flow (6.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.21
Conservative — low debt load (0.21)
Interest Cover
12.00x
Comfortably covers interest (12.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio
54.6x
Expensive — P/E 54.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+31.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (54.6 → 23.3)

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Dividends

Dividend Yield
0.42%
Small dividend — 0.42% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-69.0%
Dividend cut (-69.0% YoY) — warning sign

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