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 30 industry peers in the Specialized REITs industry. SAFE has an average financial health and profitability rating. SAFE has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years SAFE had a positive operating cash flow.
1.2 Ratios
SAFE has a Return On Assets of 1.51%. This is comparable to the rest of the industry: SAFE outperforms 46.67% of its industry peers.
The Return On Equity of SAFE (4.44%) is comparable to the rest of the industry.
The Return On Invested Capital of SAFE (3.36%) is worse than 63.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAFE is below the industry average of 5.28%.
The 3 year average ROIC (3.16%) for SAFE is below the current ROIC(3.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 4.44% | ||
| ROIC | 3.36% |
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 Profit Margin of 28.20%. This is in the better half of the industry: SAFE outperforms 73.33% 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 78.22%, SAFE belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
SAFE's Operating Margin has improved in the last couple of years.
The Gross Margin of SAFE (98.84%) is better than 96.67% of its industry peers.
SAFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.22% | ||
| PM (TTM) | 28.2% | ||
| 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
SAFE has less shares outstanding than it did 5 years ago.
SAFE has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.67, SAFE is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
SAFE has a debt to FCF ratio of 87.14. This is a negative value and a sign of low solvency as SAFE would need 87.14 years to pay back of all of its debts.
SAFE's Debt to FCF ratio of 87.14 is on the low side compared to the rest of the industry. SAFE is outperformed by 70.00% of its industry peers.
SAFE has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
SAFE has a worse Debt to Equity ratio (1.85) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 87.14 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.58
WACC5.8%
2.3 Liquidity
A Current Ratio of 14.83 indicates that SAFE has no problem at all paying its short term obligations.
SAFE's Current ratio of 14.83 is amongst the best of the industry. SAFE outperforms 100.00% of its industry peers.
SAFE has a Quick Ratio of 14.78. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SAFE (14.78) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.83 | ||
| Quick Ratio | 14.78 |
3. Growth
3.1 Past
SAFE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.48%.
Measured over the past years, SAFE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.29% on average per year.
Looking at the last year, SAFE shows a small growth in Revenue. The Revenue has grown by 0.71% in the last year.
SAFE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.28% yearly.
EPS 1Y (TTM)7.48%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%2.33%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%4.81%
3.2 Future
SAFE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.68% yearly.
Based on estimates for the next years, SAFE will show a small growth in Revenue. The Revenue will grow by 4.43% on average per year.
EPS Next Y5.31%
EPS Next 2Y3.63%
EPS Next 3Y2.84%
EPS Next 5Y5.68%
Revenue Next Year5.53%
Revenue Next 2Y5.19%
Revenue Next 3Y5.46%
Revenue Next 5Y4.43%
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
With a Price/Earnings ratio of 9.93, the valuation of SAFE can be described as very reasonable.
Based on the Price/Earnings ratio, SAFE is valued cheaper than 100.00% of the companies in the same industry.
SAFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 9.31, the valuation of SAFE can be described as 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAFE is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
SAFE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAFE is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.59 | ||
| EV/EBITDA | 18.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAFE does not grow enough to justify the current Price/Earnings ratio.
SAFE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y3.63%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
SAFE has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 5.78, SAFE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, SAFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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
SAFE pays out 48.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.53%
EPS Next 2Y3.63%
EPS Next 3Y2.84%
15.69
-0.12 (-0.76%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.91%
Inst Owner Change0%
Ins Owners0.56%
Ins Owner Change0.34%
Market Cap1.13B
Analysts77.65
Price Target21.83 (39.13%)
Short Float %5.88%
Short Ratio9.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend0.71
Dividend Growth(5Y)-2.09%
DP48.53%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.96%
Min EPS beat(2)-3.12%
Max EPS beat(2)1.2%
EPS beat(4)2
Avg EPS beat(4)1.35%
Min EPS beat(4)-3.12%
Max EPS beat(4)8.39%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)-59.94%
EPS beat(16)11
Avg EPS beat(16)31.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)-0.02%
Revenue beat(8)3
Avg Revenue beat(8)2.03%
Revenue beat(12)6
Avg Revenue beat(12)18.78%
Revenue beat(16)7
Avg Revenue beat(16)8.32%
PT rev (1m)-8.94%
PT rev (3m)-13.46%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.31 | ||
| P/S | 3.04 | ||
| P/FCF | 22.59 | ||
| P/OCF | 22.59 | ||
| P/B | 0.48 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 18.21 |
EPS(TTM)1.58
EY10.07%
EPS(NY)1.69
Fwd EY10.75%
FCF(TTM)0.69
FCFY4.43%
OCF(TTM)0.69
OCFY4.43%
SpS5.16
BVpS32.78
TBVpS29.88
PEG (NY)1.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 4.44% | ||
| ROCE | 4.26% | ||
| ROIC | 3.36% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 3.5% | ||
| OM | 78.22% | ||
| PM (TTM) | 28.2% | ||
| GM | 98.84% | ||
| FCFM | 13.46% |
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-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 87.14 | ||
| Debt/EBITDA | 14.51 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.65% | ||
| Profit Quality | 47.72% | ||
| Current Ratio | 14.83 | ||
| Quick Ratio | 14.78 | ||
| Altman-Z | 0.67 |
F-Score4
WACC5.8%
ROIC/WACC0.58
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)7.48%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%2.33%
EPS Next Y5.31%
EPS Next 2Y3.63%
EPS Next 3Y2.84%
EPS Next 5Y5.68%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%4.81%
Revenue Next Year5.53%
Revenue Next 2Y5.19%
Revenue Next 3Y5.46%
Revenue Next 5Y4.43%
EBIT growth 1Y3.63%
EBIT growth 3Y25.23%
EBIT growth 5Y23.09%
EBIT Next Year39.11%
EBIT Next 3Y17.96%
EBIT Next 5Y17.77%
FCF growth 1Y18.34%
FCF growth 3Y12.04%
FCF growth 5YN/A
OCF growth 1Y-30.32%
OCF growth 3Y12.04%
OCF growth 5YN/A