SAFEHOLD INC (SAFE) Stock Fundamental Analysis
NYSE:SAFE - New York Stock Exchange, Inc. - US78646V1070 - REIT - Currency: USD
Overall SAFE gets a fundamental rating of 5 out of 10. We evaluated SAFE against 29 industry peers in the Specialized REITs industry. Both the profitability and the financial health of SAFE get a neutral evaluation. Nothing too spectacular is happening here. SAFE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SAFE had positive earnings in the past year.
SAFE had a positive operating cash flow in the past year.
In multiple years SAFE reported negative net income over the last 5 years.
SAFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAFE's Return On Assets of 1.53% is on the low side compared to the rest of the industry. SAFE is outperformed by 64.29% of its industry peers.
SAFE has a Return On Equity of 4.51%. This is comparable to the rest of the industry: SAFE outperforms 46.43% of its industry peers.
SAFE has a Return On Invested Capital of 3.33%. This is in the lower half of the industry: SAFE underperforms 67.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAFE is below the industry average of 5.41%.
The last Return On Invested Capital (3.33%) for SAFE is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 4.51% | ||
| ROIC | 3.33% |
ROA(3y)1%
ROA(5y)0.63%
ROE(3y)2.79%
ROE(5y)1.88%
ROIC(3y)3.16%
ROIC(5y)2.78%
1.3 Margins
SAFE has a better Profit Margin (28.92%) than 82.14% of its industry peers.
SAFE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 77.97%, SAFE belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SAFE has grown nicely.
SAFE's Gross Margin of 98.84% is amongst the best of the industry. SAFE outperforms 96.43% of its industry peers.
SAFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.97% | ||
| PM (TTM) | 28.92% | ||
| GM | 98.84% |
OM growth 3Y0.15%
OM growth 5Y29.95%
PM growth 3Y-9.56%
PM growth 5Y-13.81%
GM growth 3Y0.09%
GM growth 5Y11.05%
2. Health
2.1 Basic Checks
SAFE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SAFE has more shares outstanding
Compared to 5 years ago, SAFE has less shares outstanding
Compared to 1 year ago, SAFE has a worse debt to assets ratio.
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 in line with its industry, outperforming 46.43% of the companies in the same industry.
The Debt to FCF ratio of SAFE is 114.05, which is on the high side as it means it would take SAFE, 114.05 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 114.05, SAFE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
SAFE has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.84, SAFE is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 114.05 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.56
WACC5.96%
2.3 Liquidity
SAFE has a Current Ratio of 14.46. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
SAFE's Current ratio of 14.46 is amongst the best of the industry. SAFE outperforms 100.00% of its industry peers.
A Quick Ratio of 14.40 indicates that SAFE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 14.40, SAFE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.46 | ||
| Quick Ratio | 14.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.28% over the past year.
SAFE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.29% yearly.
Looking at the last year, SAFE shows a small growth in Revenue. The Revenue has grown by 3.70% in the last year.
The Revenue has been decreasing by -5.28% on average over the past years.
EPS 1Y (TTM)8.28%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%0%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%-10.83%
3.2 Future
Based on estimates for the next years, SAFE will show a small growth in Earnings Per Share. The EPS will grow by 5.82% on average per year.
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y5.43%
EPS Next 2Y4.47%
EPS Next 3Y5.74%
EPS Next 5Y5.82%
Revenue Next Year6.18%
Revenue Next 2Y8.22%
Revenue Next 3Y10.24%
Revenue Next 5Y7.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 10.72, which indicates a very decent valuation of SAFE.
Compared to the rest of the industry, the Price/Earnings ratio of SAFE indicates a rather cheap valuation: SAFE is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SAFE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.17 indicates a reasonable valuation of SAFE.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SAFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
SAFE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SAFE is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.77 | ||
| EV/EBITDA | 18.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SAFE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y4.47%
EPS Next 3Y5.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, SAFE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.52, SAFE is paying slightly less dividend.
SAFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of SAFE decreases each year by -2.09%.
SAFE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
47.83% of the earnings are spent on dividend by SAFE. This is a bit on the high side, but may be sustainable.
DP47.83%
EPS Next 2Y4.47%
EPS Next 3Y5.74%
16.83
+0.02 (+0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.17%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0%
Market Cap1.20B
Analysts77.78
Price Target26.06 (54.84%)
Short Float %6.72%
Short Ratio7.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend0.71
Dividend Growth(5Y)-2.09%
DP47.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.1%
Min EPS beat(2)-3.12%
Max EPS beat(2)-1.08%
EPS beat(4)2
Avg EPS beat(4)2.75%
Min EPS beat(4)-3.12%
Max EPS beat(4)8.39%
EPS beat(8)4
Avg EPS beat(8)26.91%
EPS beat(12)7
Avg EPS beat(12)-55.84%
EPS beat(16)11
Avg EPS beat(16)40.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-1.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)3.75%
Revenue beat(8)4
Avg Revenue beat(8)7.76%
Revenue beat(12)6
Avg Revenue beat(12)16.49%
Revenue beat(16)7
Avg Revenue beat(16)5.74%
PT rev (1m)-10.69%
PT rev (3m)-12.94%
EPS NQ rev (1m)-1.75%
EPS NQ rev (3m)-1.52%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 10.17 | ||
| P/S | 3.29 | ||
| P/FCF | 31.77 | ||
| P/OCF | 31.77 | ||
| P/B | 0.51 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 18.67 |
EPS(TTM)1.57
EY9.33%
EPS(NY)1.66
Fwd EY9.84%
FCF(TTM)0.53
FCFY3.15%
OCF(TTM)0.53
OCFY3.15%
SpS5.12
BVpS32.81
TBVpS29.88
PEG (NY)1.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 4.51% | ||
| ROCE | 4.21% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.47% | ||
| OM | 77.97% | ||
| PM (TTM) | 28.92% | ||
| GM | 98.84% | ||
| FCFM | 10.35% |
ROA(3y)1%
ROA(5y)0.63%
ROE(3y)2.79%
ROE(5y)1.88%
ROIC(3y)3.16%
ROIC(5y)2.78%
ROICexc(3y)3.48%
ROICexc(5y)3.02%
ROICexgc(3y)3.65%
ROICexgc(5y)3.15%
ROCE(3y)4%
ROCE(5y)3.52%
ROICexcg growth 3Y8.93%
ROICexcg growth 5Y13.72%
ROICexc growth 3Y7.64%
ROICexc growth 5Y14.13%
OM growth 3Y0.15%
OM growth 5Y29.95%
PM growth 3Y-9.56%
PM growth 5Y-13.81%
GM growth 3Y0.09%
GM growth 5Y11.05%
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 114.05 | ||
| Debt/EBITDA | 14.63 | ||
| Cap/Depr | 0% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 1.76 | ||
| Cash Conversion | 12.83% | ||
| Profit Quality | 35.79% | ||
| Current Ratio | 14.46 | ||
| Quick Ratio | 14.4 | ||
| Altman-Z | 0.67 |
F-Score5
WACC5.96%
ROIC/WACC0.56
Cap/Depr(3y)43.87%
Cap/Depr(5y)45.88%
Cap/Sales(3y)1.24%
Cap/Sales(5y)2.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.28%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%0%
EPS Next Y5.43%
EPS Next 2Y4.47%
EPS Next 3Y5.74%
EPS Next 5Y5.82%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%-10.83%
Revenue Next Year6.18%
Revenue Next 2Y8.22%
Revenue Next 3Y10.24%
Revenue Next 5Y7.62%
EBIT growth 1Y6.05%
EBIT growth 3Y25.23%
EBIT growth 5Y23.09%
EBIT Next Year71.72%
EBIT Next 3Y34.28%
EBIT Next 5YN/A
FCF growth 1Y1536.62%
FCF growth 3Y12.04%
FCF growth 5YN/A
OCF growth 1Y145.96%
OCF growth 3Y12.04%
OCF growth 5YN/A