Safe Pro Group Inc. (NASDAQ: SPAI)

Sector: Industrials Industry: Aerospace & Defense CIK: 0002011208
Market Cap 72.01 Mn
P/B 8.53
P/E -5.87
P/S 56.84
ROIC (Qtr) -201.25
Div Yield % 0.00
Rev 1y % (Qtr) -69.34
Total Debt (Qtr) 221,160.00
Debt/Equity (Qtr) 0.03

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 7.60M provide 103.48x coverage of short-term debt 73417, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 8.79M provides 39.75x coverage of total debt 221160, indicating robust asset backing and low credit risk.
  • Tangible assets of 8.79M provide exceptional 120.42x coverage of deferred revenue 73007, showing strong service capability backing.
  • Operating cash flow of (4.58M) fully covers other non-current liabilities (73007) by 62.73x, showing strong long-term stability.
  • Tangible assets of 8.79M provide robust 25.78x coverage of other current liabilities 341047, indicating strong asset backing.

Bear case

  • Investment activities of (443572) provide weak support for R&D spending of 132073, which is -3.36x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (4.58M) provides insufficient coverage of deferred revenue obligations of 73007, which is -62.73x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (4.58M) shows concerning coverage of stock compensation expenses of 6.19M, with a -0.74 ratio indicating potential earnings quality issues.
  • Free cash flow of (5.02M) provides weak coverage of capital expenditures of 443572, with a -11.33 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (12.26M) show weak coverage of depreciation charges of 424213, with a -28.91 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 340.73 Bn 39.15 7.43 20.49 Bn
2 RTX RTX Corp 266.41 Bn 39.57 3.01 39.51 Bn
3 BA Boeing Co 184.47 Bn 97.60 2.06 54.10 Bn
4 LMT Lockheed Martin Corp 145.11 Bn 28.92 1.93 21.70 Bn
5 HWM Howmet Aerospace Inc. 107.72 Bn 167.79 15.89 3.19 Bn
6 GD General Dynamics Corp 104.16 Bn 30.88 2.67 8.01 Bn
7 NOC Northrop Grumman Corp /De/ 101.77 Bn 24.33 2.43 17.02 Bn
8 TDG TransDigm Group INC 74.73 Bn 41.34 8.20 30.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 7.37 3.14
EV to Cash from Ops. EV/CFO -15.60 76.41
EV to Debt EV to Debt 323.04 80.89
EV to EBIT EV/EBIT -5.83 11.31
EV to EBITDA EV/EBITDA -6.43 30.07
EV to Free Cash Flow [EV/FCF] EV/FCF -14.22 86.36
EV to Market Cap EV to Market Cap 0.99 1.07
EV to Revenue EV/Rev 56.40 10.58
Price to Book Value [P/B] P/B 8.53 5.81
Price to Earnings [P/E] P/E -5.87 18.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 19.41
Dividend per Basic Share Div per Share (Qtr) 0.00 0.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 11.64
Interest Coverage Int. cover (Qtr) -1,208.16 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -94.70 -65.17
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 225.39 1,593.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.86
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.76 -43.11
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -12.47 19.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -20.76 -34.51
EBT Growth (1y) % EBT 1y % (Qtr) -17.29 -35.59
EPS Growth (1y) % EPS 1y % (Qtr) 34.78 -112.67
FCF Growth (1y) % FCF 1y % (Qtr) -41.72 27.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.71 -0.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 6.85 1.78
Current Ratio Curr Ratio (Qtr) 7.60 3.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.29
Interest Cover Ratio Int Coverage (Qtr) -1,208.16 -13.61
Times Interest Earned Times Interest Earned (Qtr) -1,208.16 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -934.70 -345.58
EBIT Margin % EBIT Margin % (Qtr) -968.14 -382.34
EBT Margin % EBT Margin % (Qtr) -968.94 -387.64
Gross Margin % Gross Margin % (Qtr) 46.60 -33.21
Net Profit Margin % Net Margin % (Qtr) -968.90 -388.96