SAFEHOLD INC (SAFE) Stock Fundamental Analysis
USA - NYSE:SAFE - US78646V1070 - REIT
16.7 USD
+0.29 (+1.77%)
16.7 USD
0 (0%)
SAFE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAFE was profitable.
SAFE had a positive operating cash flow in the past year.
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
The Return On Assets of SAFE (1.45%) is comparable to the rest of the industry.
SAFE has a Return On Equity of 4.33%. This is comparable to the rest of the industry: SAFE outperforms 44.83% of its industry peers.
SAFE has a Return On Invested Capital of 3.40%. This is in the lower half of the industry: SAFE underperforms 62.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAFE is in line with the industry average of 4.79%.
The last Return On Invested Capital (3.40%) for SAFE is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 4.33% | ||
| ROIC | 3.4% |
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's Profit Margin of 27.45% is fine compared to the rest of the industry. SAFE outperforms 68.97% of its industry peers.
In the last couple of years the Profit Margin of SAFE has declined.
SAFE has a Operating Margin of 77.95%. This is amongst the best in the industry. SAFE outperforms 96.55% of its industry peers.
SAFE's Operating Margin has improved in the last couple of years.
SAFE has a better Gross Margin (98.89%) than 96.55% of its industry peers.
In the last couple of years the Gross Margin of SAFE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.95% | ||
| PM (TTM) | 27.45% | ||
| GM | 98.89% |
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
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.
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
Based on the Altman-Z score of 0.64, we must say that SAFE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.64, SAFE is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
SAFE has a debt to FCF ratio of 83.76. This is a negative value and a sign of low solvency as SAFE would need 83.76 years to pay back of all of its debts.
The Debt to FCF ratio of SAFE (83.76) is worse than 72.41% of its industry peers.
SAFE has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
SAFE has a worse Debt to Equity ratio (1.87) than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 83.76 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.58
WACC5.87%
2.3 Liquidity
A Current Ratio of 6.70 indicates that SAFE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.70, SAFE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SAFE has a Quick Ratio of 6.68. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 6.68, SAFE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.7 | ||
| Quick Ratio | 6.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.96% over the past year.
The earnings per share for SAFE have been decreasing by -15.29% on average. This is quite bad
The Revenue has been growing slightly by 0.64% in the past year.
The Revenue has been decreasing by -5.28% on average over the past years.
EPS 1Y (TTM)1.96%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%4.39%
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 4.56% on average per year.
SAFE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y5.05%
EPS Next 2Y3.69%
EPS Next 3Y3.37%
EPS Next 5Y4.56%
Revenue Next Year5.96%
Revenue Next 2Y5.57%
Revenue Next 3Y5.79%
Revenue Next 5Y8.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 10.71, the valuation of SAFE can be described as reasonable.
96.55% of the companies in the same industry are more expensive than SAFE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SAFE to the average of the S&P500 Index (27.41), we can say SAFE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.89, the valuation of SAFE can be described as reasonable.
100.00% of the companies in the same industry are more expensive than SAFE, based on the Price/Forward Earnings ratio.
SAFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAFE.
SAFE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAFE is cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.58 | ||
| EV/EBITDA | 18.64 |
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)2.12
PEG (5Y)N/A
EPS Next 2Y3.69%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
SAFE has a Yearly Dividend Yield of 4.23%, which is a nice return.
Compared to an average industry Dividend Yield of 5.99, SAFE is paying slightly less dividend.
SAFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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.
The dividend of SAFE decreased recently.
Dividend Growth(5Y)-2.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
SAFE pays out 49.49% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.49%
EPS Next 2Y3.69%
EPS Next 3Y3.37%
16.7
+0.29 (+1.77%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners66.61%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change0.07%
Market Cap1.20B
Analysts78.75
Price Target21.65 (29.64%)
Short Float %6.47%
Short Ratio8.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend0.71
Dividend Growth(5Y)-2.09%
DP49.49%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.16%
Min EPS beat(2)-5.51%
Max EPS beat(2)1.2%
EPS beat(4)1
Avg EPS beat(4)-2.13%
Min EPS beat(4)-5.51%
Max EPS beat(4)1.2%
EPS beat(8)4
Avg EPS beat(8)0.35%
EPS beat(12)6
Avg EPS beat(12)-65.35%
EPS beat(16)10
Avg EPS beat(16)30.78%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.18%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)-0.02%
Revenue beat(8)2
Avg Revenue beat(8)1.56%
Revenue beat(12)5
Avg Revenue beat(12)8.2%
Revenue beat(16)7
Avg Revenue beat(16)11.17%
PT rev (1m)-3.05%
PT rev (3m)-2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 9.89 | ||
| P/S | 3.2 | ||
| P/FCF | 22.58 | ||
| P/OCF | 22.58 | ||
| P/B | 0.5 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 18.64 |
EPS(TTM)1.56
EY9.34%
EPS(NY)1.69
Fwd EY10.11%
FCF(TTM)0.74
FCFY4.43%
OCF(TTM)0.74
OCFY4.43%
SpS5.21
BVpS33.07
TBVpS30.19
PEG (NY)2.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 4.33% | ||
| ROCE | 4.3% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 3.53% | ||
| OM | 77.95% | ||
| PM (TTM) | 27.45% | ||
| GM | 98.89% | ||
| FCFM | 14.18% |
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 | 1.87 | ||
| Debt/FCF | 83.76 | ||
| Debt/EBITDA | 14.77 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 17.63% | ||
| Profit Quality | 51.68% | ||
| Current Ratio | 6.7 | ||
| Quick Ratio | 6.68 | ||
| Altman-Z | 0.64 |
F-Score4
WACC5.87%
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)1.96%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%-4.88%
EPS Next Y5.05%
EPS Next 2Y3.69%
EPS Next 3Y3.37%
EPS Next 5Y4.56%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%4.39%
Revenue Next Year5.96%
Revenue Next 2Y5.57%
Revenue Next 3Y5.79%
Revenue Next 5Y8.19%
EBIT growth 1Y0.53%
EBIT growth 3Y25.23%
EBIT growth 5Y23.09%
EBIT Next Year39.07%
EBIT Next 3Y17.93%
EBIT Next 5Y19.61%
FCF growth 1Y817.05%
FCF growth 3Y12.04%
FCF growth 5YN/A
OCF growth 1Y391.32%
OCF growth 3Y12.04%
OCF growth 5YN/A