Companies / SAF
EPASafran (SAF) in our theses
Safran appears in one of our theses. Below is why it entered the basket and how it has done since publication.
New jet engines are still causing problems, driving a historic boom in the aftermarket for parts and MRO services
Reliability issues with new-generation engines and delays in jet deliveries are forcing airlines to extend the life of older aircraft. That is turning the market for parts, MRO work and leasing into a genuine cash machine.
Why this company: This is half of the CFM joint venture. The vast base of older CFM56 engines needs increasingly frequent repairs, while demand for parts for the new LEAP models is only starting to pick up pace. That means a guaranteed, recurring stream of high-margin aftermarket revenue that grows with every additional year of flying.
Where these numbers come from
The reference price is recorded on the thesis publication date and never changed afterwards. The current price is refreshed several times a day. Returns are in the listing currency and exclude dividends, so for dividend payers the real total return was somewhat higher.
This is not a recommendation to buy or sell. A company enters a basket as a beneficiary of the mechanism described in the thesis, and the full argument is on each thesis page.
See all of our theses
Each with a publication date, a causal map and a score assigned before the market ruled.
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