SAFEHOLD INC (SAFE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAFE - US78646V1070 - REIT
14.12 USD
-0.86 (-5.74%)
14.15 USD
+0.03 (+0.21%)
SAFE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. SAFE has only an average score on both its financial health and profitability. 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.
- In the past year SAFE had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: SAFE reported negative net income in multiple years.
- SAFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SAFE has a worse Return On Assets (1.58%) than 60.00% of its industry peers.
- The Return On Equity of SAFE (4.71%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 3.41%, SAFE is doing worse than 60.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SAFE is in line with the industry average of 4.86%.
- The last Return On Invested Capital (3.41%) for SAFE is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 4.71% | ||
| ROIC | 3.41% |
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
- The Profit Margin of SAFE (29.67%) is better than 73.33% of its industry peers.
- In the last couple of years the Profit Margin of SAFE has declined.
- With an excellent Operating Margin value of 79.87%, SAFE belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of SAFE has grown nicely.
- With an excellent Gross Margin value of 98.82%, SAFE belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of SAFE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 79.87% | ||
| PM (TTM) | 29.67% | ||
| GM | 98.82% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAFE is destroying value.
- The number of shares outstanding for SAFE has been increased compared to 1 year ago.
- The number of shares outstanding for SAFE has been reduced compared to 5 years ago.
- Compared to 1 year ago, SAFE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.66, we must say that SAFE is in the distress zone and has some risk of bankruptcy.
- SAFE's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. SAFE is outperformed by 63.33% of its industry peers.
- The Debt to FCF ratio of SAFE is 104.03, which is on the high side as it means it would take SAFE, 104.03 years of fcf income to pay off all of its debts.
- SAFE has a Debt to FCF ratio (104.03) which is in line with its industry peers.
- A Debt/Equity ratio of 1.89 is on the high side and indicates that SAFE has dependencies on debt financing.
- The Debt to Equity ratio of SAFE (1.89) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 104.03 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.62
WACC5.55%
2.3 Liquidity
- SAFE has a Current Ratio of 14.87. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of SAFE (14.87) is better than 100.00% of its industry peers.
- SAFE has a Quick Ratio of 14.85. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
- SAFE has a better Quick ratio (14.85) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.87 | ||
| Quick Ratio | 14.85 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.91% 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 -41.29% yearly.
- The Revenue has been growing slightly by 0.72% in the past year.
- The Revenue has been decreasing by -5.28% on average over the past years.
EPS 1Y (TTM)1.91%
EPS 3Y-58.56%
EPS 5Y-41.29%
EPS Q2Q%10.81%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%6.02%
3.2 Future
- The Earnings Per Share is expected to grow by 4.71% on average over the next years.
- SAFE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.99% yearly.
EPS Next Y7.18%
EPS Next 2Y4.96%
EPS Next 3Y3.13%
EPS Next 5Y4.71%
Revenue Next Year6.18%
Revenue Next 2Y5.15%
Revenue Next 3Y4.43%
Revenue Next 5Y8.99%
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 8.82, which indicates a very decent valuation of SAFE.
- 96.67% of the companies in the same industry are more expensive than SAFE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. SAFE is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 8.16, the valuation of SAFE can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of 25.98, SAFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 8.16 |
4.2 Price Multiples
- SAFE's Enterprise Value to EBITDA is on the same level as the industry average.
- SAFE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAFE is cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.35 | ||
| EV/EBITDA | 17.67 |
4.3 Compensation for Growth
- SAFE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of SAFE may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y4.96%
EPS Next 3Y3.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.73%, SAFE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.51, SAFE has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, SAFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
- The dividend of SAFE decreases each year by -2.09%.
- SAFE has been paying a dividend for at least 10 years, so it has a reliable track record.
- SAFE has decreased its dividend recently.
Dividend Growth(5Y)-2.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 45.17% of the earnings are spent on dividend by SAFE. This is a bit on the high side, but may be sustainable.
DP45.17%
EPS Next 2Y4.96%
EPS Next 3Y3.13%
SAFEHOLD INC / SAFE FAQ
Can you provide the ChartMill fundamental rating for SAFEHOLD INC?
ChartMill assigns a fundamental rating of 5 / 10 to SAFE.
What is the valuation status of SAFEHOLD INC (SAFE) stock?
ChartMill assigns a valuation rating of 6 / 10 to SAFEHOLD INC (SAFE). This can be considered as Fairly Valued.
What is the profitability of SAFE stock?
SAFEHOLD INC (SAFE) has a profitability rating of 6 / 10.
Can you provide the financial health for SAFE stock?
The financial health rating of SAFEHOLD INC (SAFE) is 4 / 10.
Can you provide the expected EPS growth for SAFE stock?
The Earnings per Share (EPS) of SAFEHOLD INC (SAFE) is expected to grow by 7.18% in the next year.