SAUL CENTERS INC (BFS) Stock Fundamental Analysis
NYSE:BFS - New York Stock Exchange, Inc. - US8043951016 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to BFS. BFS was compared to 129 industry peers in the Diversified REITs industry. BFS scores excellent on profitability, but there are concerns on its financial health. BFS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BFS was profitable.
In the past year BFS had a positive cash flow from operations.
BFS had positive earnings in each of the past 5 years.
Each year in the past 5 years BFS had a positive operating cash flow.
1.2 Ratios
BFS has a better Return On Assets (2.11%) than 69.77% of its industry peers.
BFS has a better Return On Equity (13.04%) than 93.80% of its industry peers.
BFS has a Return On Invested Capital of 4.83%. This is amongst the best in the industry. BFS outperforms 88.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BFS is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 13.04% | ||
| ROIC | 4.83% |
ROA(3y)2.11%
ROA(5y)2.07%
ROE(3y)10.28%
ROE(5y)9.71%
ROIC(3y)4.92%
ROIC(5y)4.98%
1.3 Margins
The Profit Margin of BFS (16.60%) is better than 71.32% of its industry peers.
In the last couple of years the Profit Margin of BFS has remained more or less at the same level.
BFS's Operating Margin of 46.25% is amongst the best of the industry. BFS outperforms 89.15% of its industry peers.
In the last couple of years the Operating Margin of BFS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 73.85%, BFS is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
BFS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.25% | ||
| PM (TTM) | 16.6% | ||
| GM | 73.85% |
OM growth 3Y3.06%
OM growth 5Y-0.56%
PM growth 3Y8.3%
PM growth 5Y0.41%
GM growth 3Y-0.31%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BFS is destroying value.
BFS has more shares outstanding than it did 1 year ago.
BFS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BFS has a worse debt to assets ratio.
2.2 Solvency
BFS has an Altman-Z score of 0.42. This is a bad value and indicates that BFS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BFS (0.42) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.37 is on the high side and indicates that BFS has dependencies on debt financing.
With a Debt to Equity ratio value of 4.37, BFS is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.42 |
ROIC/WACC0.8
WACC6.07%
2.3 Liquidity
BFS has a Current Ratio of 0.81. This is a bad value and indicates that BFS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, BFS is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that BFS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, BFS is in line with its industry, outperforming 41.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
BFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.02%, which is quite good.
The Earnings Per Share has been growing slightly by 1.52% on average over the past years.
Looking at the last year, BFS shows a small growth in Revenue. The Revenue has grown by 6.15% in the last year.
Measured over the past years, BFS shows a small growth in Revenue. The Revenue has been growing by 2.46% on average per year.
EPS 1Y (TTM)10.02%
EPS 3Y11.34%
EPS 5Y1.52%
EPS Q2Q%15.17%
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.81%
Revenue growth 5Y2.46%
Sales Q2Q%5.22%
3.2 Future
Based on estimates for the next years, BFS will show a decrease in Earnings Per Share. The EPS will decrease by -8.70% on average per year.
Based on estimates for the next years, BFS will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y0.11%
EPS Next 2Y-9.14%
EPS Next 3Y-8.7%
EPS Next 5YN/A
Revenue Next Year5.75%
Revenue Next 2Y6.03%
Revenue Next 3Y6.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.03 indicates a rather expensive valuation of BFS.
Compared to the rest of the industry, the Price/Earnings ratio of BFS indicates a rather cheap valuation: BFS is cheaper than 82.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, BFS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 26.02, BFS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BFS is valued cheaper than 82.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, BFS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 26.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BFS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BFS does not grow enough to justify the current Price/Earnings ratio.
BFS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BFS's earnings are expected to decrease with -8.70% in the coming years.
PEG (NY)181.85
PEG (5Y)13.19
EPS Next 2Y-9.14%
EPS Next 3Y-8.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.54%, BFS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 19.22, BFS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, BFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
5.2 History
The dividend of BFS has a limited annual growth rate of 1.51%.
BFS has been paying a dividend for at least 10 years, so it has a reliable track record.
BFS has decreased its dividend recently.
Dividend Growth(5Y)1.51%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
152.69% of the earnings are spent on dividend by BFS. This is not a sustainable payout ratio.
The Dividend Rate of BFS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP152.69%
EPS Next 2Y-9.14%
EPS Next 3Y-8.7%
37.05
+0.97 (+2.69%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners46.53%
Inst Owner Change0.39%
Ins Owners48.44%
Ins Owner Change0.64%
Market Cap896.61M
Analysts80
Price Target47.94 (29.39%)
Short Float %0.64%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend2.83
Dividend Growth(5Y)1.51%
DP152.69%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.19%
Min EPS beat(2)10.52%
Max EPS beat(2)21.86%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)1.28%
Max Revenue beat(2)1.39%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)3.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 26.02 | ||
| P/S | 3.34 | ||
| P/FCF | N/A | ||
| P/OCF | 7.16 | ||
| P/B | 2.62 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 13.81 |
EPS(TTM)1.85
EY4.99%
EPS(NY)1.42
Fwd EY3.84%
FCF(TTM)-3.16
FCFYN/A
OCF(TTM)5.17
OCFY13.96%
SpS11.1
BVpS14.13
TBVpS14.13
PEG (NY)181.85
PEG (5Y)13.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 13.04% | ||
| ROCE | 6.12% | ||
| ROIC | 4.83% | ||
| ROICexc | 4.85% | ||
| ROICexgc | 4.88% | ||
| OM | 46.25% | ||
| PM (TTM) | 16.6% | ||
| GM | 73.85% | ||
| FCFM | N/A |
ROA(3y)2.11%
ROA(5y)2.07%
ROE(3y)10.28%
ROE(5y)9.71%
ROIC(3y)4.92%
ROIC(5y)4.98%
ROICexc(3y)4.95%
ROICexc(5y)5.03%
ROICexgc(3y)5%
ROICexgc(5y)5.06%
ROCE(3y)6.23%
ROCE(5y)6.3%
ROICexcg growth 3Y0.54%
ROICexcg growth 5Y-3.3%
ROICexc growth 3Y0.4%
ROICexc growth 5Y-3.38%
OM growth 3Y3.06%
OM growth 5Y-0.56%
PM growth 3Y8.3%
PM growth 5Y0.41%
GM growth 3Y-0.31%
GM growth 5Y-0.45%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.65 | ||
| Cap/Depr | 417.06% | ||
| Cap/Sales | 75.07% | ||
| Interest Coverage | 2.63 | ||
| Cash Conversion | 72.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 0.42 |
F-Score6
WACC6.07%
ROIC/WACC0.8
Cap/Depr(3y)256.76%
Cap/Depr(5y)234.79%
Cap/Sales(3y)49.96%
Cap/Sales(5y)46.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.02%
EPS 3Y11.34%
EPS 5Y1.52%
EPS Q2Q%15.17%
EPS Next Y0.11%
EPS Next 2Y-9.14%
EPS Next 3Y-8.7%
EPS Next 5YN/A
Revenue 1Y (TTM)6.15%
Revenue growth 3Y3.81%
Revenue growth 5Y2.46%
Sales Q2Q%5.22%
Revenue Next Year5.75%
Revenue Next 2Y6.03%
Revenue Next 3Y6.28%
Revenue Next 5YN/A
EBIT growth 1Y7.76%
EBIT growth 3Y6.99%
EBIT growth 5Y1.89%
EBIT Next Year47.15%
EBIT Next 3Y18.36%
EBIT Next 5YN/A
FCF growth 1Y-485.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.11%
OCF growth 3Y14.51%
OCF growth 5Y1.31%