SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
USA - NYSE:SAR - US80349A2087 - Common Stock
24.51 USD
-0.08 (-0.33%)
SAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. SAR has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on SAR. Finally SAR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SAR had positive earnings in the past year.
In the past year SAR had a positive cash flow from operations.
SAR had positive earnings in each of the past 5 years.
SAR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of SAR (2.95%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.93%, SAR is in line with its industry, outperforming 52.10% of the companies in the same industry.
The Return On Invested Capital of SAR (3.30%) is comparable to the rest of the industry.
SAR had an Average Return On Invested Capital over the past 3 years of 3.34%. This is below the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 8.93% | ||
| ROIC | 3.3% |
ROA(3y)1.8%
ROA(5y)2.62%
ROE(3y)5.56%
ROE(5y)6.88%
ROIC(3y)3.34%
ROIC(5y)3%
1.3 Margins
SAR's Profit Margin of 24.85% is fine compared to the rest of the industry. SAR outperforms 66.39% of its industry peers.
In the last couple of years the Profit Margin of SAR has declined.
The Operating Margin of SAR (34.62%) is better than 62.60% of its industry peers.
SAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.58%, SAR is doing worse than 60.08% of the companies in the same industry.
SAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.62% | ||
| PM (TTM) | 24.85% | ||
| GM | 41.58% |
OM growth 3Y8.45%
OM growth 5Y5.8%
PM growth 3Y-33.67%
PM growth 5Y-27.68%
GM growth 3Y5.15%
GM growth 5Y4.57%
2. Health
2.1 Basic Checks
SAR has more shares outstanding than it did 1 year ago.
SAR has more shares outstanding than it did 5 years ago.
SAR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that SAR is in the distress zone and has some risk of bankruptcy.
SAR has a Altman-Z score (0.72) which is in line with its industry peers.
SAR has a debt to FCF ratio of 4.46. This is a neutral value as SAR would need 4.46 years to pay back of all of its debts.
SAR has a Debt to FCF ratio of 4.46. This is in the better half of the industry: SAR outperforms 72.69% of its industry peers.
A Debt/Equity ratio of 2.00 is on the high side and indicates that SAR has dependencies on debt financing.
SAR has a worse Debt to Equity ratio (2.00) than 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 0.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 11.05 indicates that SAR has no problem at all paying its short term obligations.
SAR has a better Current ratio (11.05) than 96.22% of its industry peers.
SAR has a Quick Ratio of 11.05. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 11.05, SAR belongs to the best of the industry, outperforming 96.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.05 | ||
| Quick Ratio | 11.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.13% over the past year.
The earnings per share for SAR have been decreasing by -18.46% on average. This is quite bad
SAR shows a decrease in Revenue. In the last year, the revenue decreased by -3.56%.
The Revenue has been growing by 20.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)104.13%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%89.58%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-6.5%
3.2 Future
Based on estimates for the next years, SAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.68% on average per year.
Based on estimates for the next years, SAR will show a decrease in Revenue. The Revenue will decrease by -6.85% on average per year.
EPS Next Y39.97%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.9%
Revenue Next 2Y-6.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.92, which indicates a very decent valuation of SAR.
SAR's Price/Earnings ratio is a bit cheaper when compared to the industry. SAR is cheaper than 75.63% of the companies in the same industry.
SAR is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.30, the valuation of SAR can be described as reasonable.
Based on the Price/Forward Earnings ratio, SAR is valued cheaply inside the industry as 80.67% of the companies are valued more expensively.
SAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAR indicates a rather cheap valuation: SAR is cheaper than 92.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.2 | ||
| EV/EBITDA | N/A |
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.
SAR's earnings are expected to grow with 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y13.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SAR has a Yearly Dividend Yield of 12.48%, which is a nice return.
Compared to an average industry Dividend Yield of 8.21, SAR pays a bit more dividend than its industry peers.
SAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
5.2 History
On average, the dividend of SAR grows each year by 9.46%, which is quite nice.
SAR has been paying a dividend for at least 10 years, so it has a reliable track record.
SAR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.46%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
SAR pays out 136.79% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SAR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP136.79%
EPS Next 2Y13.68%
EPS Next 3YN/A
NYSE:SAR (9/12/2025, 8:15:47 PM)
24.51
-0.08 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.51%
Inst Owner Change-9.44%
Ins Owners10.73%
Ins Owner Change0.28%
Market Cap390.93M
Analysts71.67
Price Target25.03 (2.12%)
Short Float %2.12%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
Yearly Dividend2.83
Dividend Growth(5Y)9.46%
DP136.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.95%
Min EPS beat(2)-107.09%
Max EPS beat(2)-2.81%
EPS beat(4)1
Avg EPS beat(4)-35.17%
Min EPS beat(4)-107.09%
Max EPS beat(4)1.95%
EPS beat(8)1
Avg EPS beat(8)-52.46%
EPS beat(12)2
Avg EPS beat(12)-42.59%
EPS beat(16)5
Avg EPS beat(16)-32.94%
Revenue beat(2)1
Avg Revenue beat(2)2.08%
Min Revenue beat(2)-6.72%
Max Revenue beat(2)10.88%
Revenue beat(4)2
Avg Revenue beat(4)2.46%
Min Revenue beat(4)-9%
Max Revenue beat(4)14.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)2.76%
PT rev (1m)0%
PT rev (3m)-2.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.83%
EPS NY rev (1m)2.39%
EPS NY rev (3m)-10.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.3 | ||
| P/S | 2.74 | ||
| P/FCF | 2.2 | ||
| P/OCF | 2.2 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.47
EY10.08%
EPS(NY)2.64
Fwd EY10.76%
FCF(TTM)11.14
FCFY45.45%
OCF(TTM)11.14
OCFY45.45%
SpS8.93
BVpS24.85
TBVpS24.85
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 8.93% | ||
| ROCE | 4.17% | ||
| ROIC | 3.3% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 4.08% | ||
| OM | 34.62% | ||
| PM (TTM) | 24.85% | ||
| GM | 41.58% | ||
| FCFM | 124.7% |
ROA(3y)1.8%
ROA(5y)2.62%
ROE(3y)5.56%
ROE(5y)6.88%
ROIC(3y)3.34%
ROIC(5y)3%
ROICexc(3y)3.72%
ROICexc(5y)3.29%
ROICexgc(3y)3.72%
ROICexgc(5y)3.29%
ROCE(3y)4.22%
ROCE(5y)3.8%
ROICexcg growth 3Y30.31%
ROICexcg growth 5Y10.28%
ROICexc growth 3Y30.28%
ROICexc growth 5Y10.29%
OM growth 3Y8.45%
OM growth 5Y5.8%
PM growth 3Y-33.67%
PM growth 5Y-27.68%
GM growth 3Y5.15%
GM growth 5Y4.57%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.05 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 501.82% | ||
| Current Ratio | 11.05 | ||
| Quick Ratio | 11.05 | ||
| Altman-Z | 0.72 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)104.13%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%89.58%
EPS Next Y39.97%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-6.5%
Revenue Next Year-14.9%
Revenue Next 2Y-6.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.67%
EBIT growth 3Y38.97%
EBIT growth 5Y27.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y210.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y210.32%
OCF growth 3YN/A
OCF growth 5YN/A