SAFEHOLD INC (SAFE) Stock Fundamental Analysis
NYSE:SAFE - New York Stock Exchange, Inc. - US78646V1070 - REIT
SAFE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. SAFE has a medium profitability rating, but doesn't score so well on its financial health evaluation. SAFE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SAFE was profitable.
SAFE had a positive operating cash flow in the past year.
In multiple years SAFE reported negative net income over the last 5 years.
Of the past 5 years SAFE 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.77%, SAFE is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
SAFE's Return On Equity of 5.28% is in line compared to the rest of the industry. SAFE outperforms 42.86% of its industry peers.
The Return On Invested Capital of SAFE (3.47%) is worse than 67.86% of its industry peers.
SAFE had an Average Return On Invested Capital over the past 3 years of 2.88%. This is below the industry average of 5.21%.
The last Return On Invested Capital (3.47%) for SAFE is above the 3 year average (2.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 5.28% | ||
| ROIC | 3.47% |
ROA(3y)1%
ROA(5y)1.47%
ROE(3y)4.15%
ROE(5y)6.58%
ROIC(3y)2.88%
ROIC(5y)2.43%
1.3 Margins
SAFE has a Profit Margin of 32.08%. This is amongst the best in the industry. SAFE outperforms 82.14% of its industry peers.
With an excellent Operating Margin value of 78.05%, SAFE belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
SAFE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 98.78%, SAFE belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
SAFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.05% | ||
| PM (TTM) | 32.08% | ||
| GM | 98.78% |
OM growth 3Y54.17%
OM growth 5Y35.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.61%
GM growth 5Y20.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SAFE is destroying value.
SAFE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SAFE has been increased compared to 5 years ago.
The debt/assets ratio for SAFE is higher compared to a year ago.
2.2 Solvency
SAFE has an Altman-Z score of 0.67. This is a bad value and indicates that SAFE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, SAFE is doing worse than 67.86% of the companies in the same industry.
The Debt to FCF ratio of SAFE is 84.61, which is on the high side as it means it would take SAFE, 84.61 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 84.61, SAFE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.88 is on the high side and indicates that SAFE has dependencies on debt financing.
SAFE's Debt to Equity ratio of 1.88 is on the low side compared to the rest of the industry. SAFE is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 84.61 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.64
WACC5.46%
2.3 Liquidity
SAFE has a Current Ratio of 14.65. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
SAFE has a better Current ratio (14.65) than 100.00% of its industry peers.
A Quick Ratio of 14.59 indicates that SAFE has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 14.59, SAFE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.65 | ||
| Quick Ratio | 14.59 |
3. Growth
3.1 Past
SAFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 133.69%, which is quite impressive.
SAFE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.95% yearly.
The Revenue has grown by 34.63% in the past year. This is a very strong growth!
SAFE shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -15.07% yearly.
EPS 1Y (TTM)133.69%
EPS 3Y38.99%
EPS 5Y-11.95%
EPS Q2Q%12.12%
Revenue 1Y (TTM)34.63%
Revenue growth 3Y-12.75%
Revenue growth 5Y-15.07%
Sales Q2Q%6.01%
3.2 Future
SAFE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.31% yearly.
SAFE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y11%
EPS Next 2Y7.28%
EPS Next 3Y7.04%
EPS Next 5Y6.31%
Revenue Next Year8.53%
Revenue Next 2Y7.36%
Revenue Next 3Y8.43%
Revenue Next 5Y7.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.70, which indicates a very decent valuation of SAFE.
Based on the Price/Earnings ratio, SAFE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. SAFE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.07, the valuation of SAFE can be described as very reasonable.
SAFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAFE is cheaper than 100.00% of the companies in the same industry.
SAFE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAFE.
Based on the Price/Free Cash Flow ratio, SAFE is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.64 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SAFE may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y7.28%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, SAFE is a good candidate for dividend investing.
The stock price of SAFE dropped by -26.99% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SAFE's Dividend Yield is slightly below the industry average, which is at 4.78.
SAFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of SAFE has a limited annual growth rate of 0.97%.
SAFE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.76% of the earnings are spent on dividend by SAFE. This is a bit on the high side, but may be sustainable.
The dividend of SAFE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.76%
EPS Next 2Y7.28%
EPS Next 3Y7.04%
SAFEHOLD INC
NYSE:SAFE (1/21/2025, 8:25:24 PM)
After market: 16.8 0 (0%)16.8
-0.2 (-1.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.79%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0%
Market Cap1.20B
Analysts78.95
Price Target29.58 (76.07%)
Short Float %5.99%
Short Ratio7.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend0.69
Dividend Growth(5Y)0.97%
DP41.76%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.65%
Min EPS beat(2)-1.08%
Max EPS beat(2)8.39%
EPS beat(4)3
Avg EPS beat(4)3.99%
Min EPS beat(4)-1.08%
Max EPS beat(4)8.39%
EPS beat(8)4
Avg EPS beat(8)-185.7%
EPS beat(12)8
Avg EPS beat(12)4.11%
EPS beat(16)12
Avg EPS beat(16)48.89%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-0.36%
Revenue beat(4)2
Avg Revenue beat(4)4.81%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)17.52%
Revenue beat(8)4
Avg Revenue beat(8)3.93%
Revenue beat(12)6
Avg Revenue beat(12)12.42%
Revenue beat(16)7
Avg Revenue beat(16)5.41%
PT rev (1m)-0.57%
PT rev (3m)-2.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.07 | ||
| P/S | 3.18 | ||
| P/FCF | 23.64 | ||
| P/OCF | 22.62 | ||
| P/B | 0.52 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)1.57
EY9.35%
EPS(NY)1.67
Fwd EY9.93%
FCF(TTM)0.71
FCFY4.23%
OCF(TTM)0.74
OCFY4.42%
SpS5.27
BVpS32.02
TBVpS29.07
PEG (NY)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 5.28% | ||
| ROCE | 4.4% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.48% | ||
| ROICexgc | 3.62% | ||
| OM | 78.05% | ||
| PM (TTM) | 32.08% | ||
| GM | 98.78% | ||
| FCFM | 13.47% |
ROA(3y)1%
ROA(5y)1.47%
ROE(3y)4.15%
ROE(5y)6.58%
ROIC(3y)2.88%
ROIC(5y)2.43%
ROICexc(3y)3.26%
ROICexc(5y)2.7%
ROICexgc(3y)3.39%
ROICexgc(5y)2.82%
ROCE(3y)3.64%
ROCE(5y)3.09%
ROICexcg growth 3Y18.28%
ROICexcg growth 5Y3.32%
ROICexc growth 3Y18.9%
ROICexc growth 5Y4.13%
OM growth 3Y54.17%
OM growth 5Y35.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.61%
GM growth 5Y20.6%
F-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 84.61 | ||
| Debt/EBITDA | 14.12 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 17.44% | ||
| Profit Quality | 41.99% | ||
| Current Ratio | 14.65 | ||
| Quick Ratio | 14.59 | ||
| Altman-Z | 0.67 |
F-Score6
WACC5.46%
ROIC/WACC0.64
Cap/Depr(3y)43.87%
Cap/Depr(5y)182.38%
Cap/Sales(3y)1.24%
Cap/Sales(5y)19.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)133.69%
EPS 3Y38.99%
EPS 5Y-11.95%
EPS Q2Q%12.12%
EPS Next Y11%
EPS Next 2Y7.28%
EPS Next 3Y7.04%
EPS Next 5Y6.31%
Revenue 1Y (TTM)34.63%
Revenue growth 3Y-12.75%
Revenue growth 5Y-15.07%
Sales Q2Q%6.01%
Revenue Next Year8.53%
Revenue Next 2Y7.36%
Revenue Next 3Y8.43%
Revenue Next 5Y7.73%
EBIT growth 1Y84.06%
EBIT growth 3Y34.51%
EBIT growth 5Y14.77%
EBIT Next Year279.8%
EBIT Next 3Y66.28%
EBIT Next 5Y54.54%
FCF growth 1Y90.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.34%
OCF growth 3Y-11.09%
OCF growth 5YN/A