SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
NYSE:SAR - New York Stock Exchange, Inc. - US80349A2087 - Common Stock - Currency: USD
Taking everything into account, SAR scores 6 out of 10 in our fundamental rating. SAR was compared to 225 industry peers in the Capital Markets industry. SAR has an average financial health and profitability rating. SAR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
In the past 5 years SAR has always been profitable.
In the past 5 years SAR always reported negative operating cash flow.
1.2 Ratios
SAR has a Return On Assets of 2.79%. This is comparable to the rest of the industry: SAR outperforms 48.86% of its industry peers.
The Return On Equity of SAR (9.09%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.80%, SAR perfoms like the industry average, outperforming 47.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SAR is below the industry average of 6.82%.
The 3 year average ROIC (2.75%) for SAR is below the current ROIC(3.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 9.09% | ||
| ROIC | 3.8% |
ROA(3y)2.75%
ROA(5y)4.25%
ROE(3y)7.46%
ROE(5y)9.11%
ROIC(3y)2.75%
ROIC(5y)2.77%
1.3 Margins
SAR has a Profit Margin of 22.01%. This is comparable to the rest of the industry: SAR outperforms 57.99% of its industry peers.
In the last couple of years the Profit Margin of SAR has declined.
SAR has a Operating Margin of 37.41%. This is in the better half of the industry: SAR outperforms 62.10% of its industry peers.
In the last couple of years the Operating Margin of SAR has grown nicely.
The Gross Margin of SAR (43.54%) is worse than 61.64% of its industry peers.
SAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.41% | ||
| PM (TTM) | 22.01% | ||
| GM | 43.54% |
OM growth 3Y-0.42%
OM growth 5Y1.81%
PM growth 3Y-37.64%
PM growth 5Y-30.67%
GM growth 3Y-2.5%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
The number of shares outstanding for SAR has been increased compared to 1 year ago.
SAR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that SAR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.78, SAR is in line with its industry, outperforming 43.38% of the companies in the same industry.
The Debt to FCF ratio of SAR is 4.26, which is a neutral value as it means it would take SAR, 4.26 years of fcf income to pay off all of its debts.
SAR has a better Debt to FCF ratio (4.26) than 66.21% of its industry peers.
A Debt/Equity ratio of 2.24 is on the high side and indicates that SAR has dependencies on debt financing.
With a Debt to Equity ratio value of 2.24, SAR is not doing good in the industry: 80.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 0.78 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SAR has a Current Ratio of 15.00. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 15.00, SAR belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
A Quick Ratio of 15.00 indicates that SAR has no problem at all paying its short term obligations.
SAR has a better Quick ratio (15.00) than 95.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 15 | ||
| Quick Ratio | 15 |
3. Growth
3.1 Past
SAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.84%, which is quite impressive.
Measured over the past years, SAR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.04% on average per year.
The Revenue has grown by 11.52% in the past year. This is quite good.
SAR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.68% yearly.
EPS 1Y (TTM)27.84%
EPS 3Y-18.88%
EPS 5Y-23.04%
EPS Q2Q%306.45%
Revenue 1Y (TTM)11.52%
Revenue growth 3Y35.59%
Revenue growth 5Y24.68%
Sales Q2Q%-10.83%
3.2 Future
SAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 105.22% yearly.
Based on estimates for the next years, SAR will show a decrease in Revenue. The Revenue will decrease by -3.22% on average per year.
EPS Next Y293.85%
EPS Next 2Y105.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.58%
Revenue Next 2Y-3.22%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.47, the valuation of SAR can be described as very reasonable.
67.12% of the companies in the same industry are more expensive than SAR, based on the Price/Earnings ratio.
SAR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
SAR is valuated reasonably with a Price/Forward Earnings ratio of 8.68.
Based on the Price/Forward Earnings ratio, SAR is valued cheaper than 80.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SAR to the average of the S&P500 Index (22.70), we can say SAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
91.78% of the companies in the same industry are more expensive than SAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SAR's 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 105.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y105.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.60%, SAR is a good candidate for dividend investing.
SAR's Dividend Yield is a higher than the industry average which is at 10.21.
Compared to an average S&P500 Dividend Yield of 2.27, SAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.6% |
5.2 History
On average, the dividend of SAR grows each year by 7.90%, 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)7.9%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
105.50% of the earnings are spent on dividend by SAR. This is not a sustainable payout ratio.
The dividend of SAR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP105.5%
EPS Next 2Y105.22%
EPS Next 3YN/A
25.96
+0.32 (+1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners16.87%
Inst Owner Change-89.96%
Ins Owners11.3%
Ins Owner Change-0.87%
Market Cap372.53M
Analysts76.67
Price Target26.07 (0.42%)
Short Float %1.24%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.6% |
Yearly Dividend2.51
Dividend Growth(5Y)7.9%
DP105.5%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.39%
Min EPS beat(2)-32.73%
Max EPS beat(2)1.95%
EPS beat(4)1
Avg EPS beat(4)-34.92%
Min EPS beat(4)-59.46%
Max EPS beat(4)1.95%
EPS beat(8)2
Avg EPS beat(8)-38.47%
EPS beat(12)3
Avg EPS beat(12)-41.26%
EPS beat(16)7
Avg EPS beat(16)-4.8%
Revenue beat(2)1
Avg Revenue beat(2)2.85%
Min Revenue beat(2)-9%
Max Revenue beat(2)14.69%
Revenue beat(4)2
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)14.69%
Revenue beat(8)4
Avg Revenue beat(8)2.17%
Revenue beat(12)7
Avg Revenue beat(12)3.29%
Revenue beat(16)10
Avg Revenue beat(16)4.06%
PT rev (1m)-2.46%
PT rev (3m)-1.87%
EPS NQ rev (1m)-9.03%
EPS NQ rev (3m)-16.82%
EPS NY rev (1m)-11.87%
EPS NY rev (3m)-11.87%
Revenue NQ rev (1m)-3.81%
Revenue NQ rev (3m)-7.64%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 8.68 | ||
| P/S | 2.41 | ||
| P/FCF | 1.89 | ||
| P/OCF | 1.89 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.48
EY9.55%
EPS(NY)2.99
Fwd EY11.52%
FCF(TTM)13.71
FCFY52.83%
OCF(TTM)13.71
OCFY52.83%
SpS10.79
BVpS26.12
TBVpS26.12
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 9.09% | ||
| ROCE | 4.81% | ||
| ROIC | 3.8% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 4.81% | ||
| OM | 37.41% | ||
| PM (TTM) | 22.01% | ||
| GM | 43.54% | ||
| FCFM | 127.14% |
ROA(3y)2.75%
ROA(5y)4.25%
ROE(3y)7.46%
ROE(5y)9.11%
ROIC(3y)2.75%
ROIC(5y)2.77%
ROICexc(3y)2.93%
ROICexc(5y)2.95%
ROICexgc(3y)2.93%
ROICexgc(5y)2.95%
ROCE(3y)3.49%
ROCE(5y)3.51%
ROICexcg growth 3Y5.99%
ROICexcg growth 5Y2.82%
ROICexc growth 3Y6.01%
ROICexc growth 5Y2.83%
OM growth 3Y-0.42%
OM growth 5Y1.81%
PM growth 3Y-37.64%
PM growth 5Y-30.67%
GM growth 3Y-2.5%
GM growth 5Y0.75%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 577.63% | ||
| Current Ratio | 15 | ||
| Quick Ratio | 15 | ||
| Altman-Z | 0.78 |
F-Score7
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)27.84%
EPS 3Y-18.88%
EPS 5Y-23.04%
EPS Q2Q%306.45%
EPS Next Y293.85%
EPS Next 2Y105.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.52%
Revenue growth 3Y35.59%
Revenue growth 5Y24.68%
Sales Q2Q%-10.83%
Revenue Next Year5.58%
Revenue Next 2Y-3.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.8%
EBIT growth 3Y35.03%
EBIT growth 5Y26.94%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y163.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y163.66%
OCF growth 3YN/A
OCF growth 5YN/A