SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
NYSE:SAR - New York Stock Exchange, Inc. - US80349A2087 - Common Stock - Currency: USD
Overall SAR gets a fundamental rating of 5 out of 10. We evaluated SAR against 233 industry peers in the Capital Markets industry. SAR has an average financial health and profitability rating. SAR is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
SAR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.95%, SAR is in line with its industry, outperforming 52.79% of the companies in the same industry.
With a Return On Equity value of 8.93%, SAR perfoms like the industry average, outperforming 54.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.30%, SAR is doing worse than 60.09% of the companies in the same industry.
SAR had an Average Return On Invested Capital over the past 3 years of 3.34%. This is below the industry average of 7.86%.
| 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
With a decent Profit Margin value of 24.85%, SAR is doing good in the industry, outperforming 66.52% of the companies in the same industry.
SAR's Profit Margin has declined in the last couple of years.
SAR's Operating Margin of 34.62% is fine compared to the rest of the industry. SAR outperforms 63.09% of its industry peers.
In the last couple of years the Operating Margin of SAR has grown nicely.
Looking at the Gross Margin, with a value of 41.58%, SAR is doing worse than 61.80% of the companies in the same industry.
In the last couple of years the Gross Margin of SAR has grown nicely.
| 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
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 an improved debt to assets ratio.
2.2 Solvency
SAR has an Altman-Z score of 0.72. This is a bad value and indicates that SAR is not financially healthy and even has some risk of bankruptcy.
SAR has a Altman-Z score (0.72) which is in line with its industry peers.
The Debt to FCF ratio of SAR is 4.46, which is a neutral value as it means it would take SAR, 4.46 years of fcf income to pay off 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 69.96% 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.
With a Debt to Equity ratio value of 2.00, SAR is not doing good in the industry: 78.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 0.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SAR has a Current Ratio of 11.05. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SAR (11.05) is better than 95.28% of its industry peers.
A Quick Ratio of 11.05 indicates that SAR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 11.05, SAR belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.05 | ||
| Quick Ratio | 11.05 |
3. Growth
3.1 Past
SAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.13%, 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 -18.46% on average per year.
The Revenue has decreased by -3.56% in the past year.
Measured over the past years, SAR shows a very strong growth in Revenue. The Revenue has been growing by 20.56% on average per year.
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
The Earnings Per Share is expected to grow by 14.22% on average over the next years. This is quite good.
Based on estimates for the next years, SAR will show a decrease in Revenue. The Revenue will decrease by -6.96% on average per year.
EPS Next Y36.71%
EPS Next 2Y14.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.5%
Revenue Next 2Y-6.96%
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 10.08, which indicates a very decent valuation of SAR.
Based on the Price/Earnings ratio, SAR is valued a bit cheaper than the industry average as 74.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SAR to the average of the S&P500 Index (27.19), we can say SAR is valued rather cheaply.
The Price/Forward Earnings ratio is 9.36, which indicates a very decent valuation of SAR.
SAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAR is cheaper than 80.69% of the companies in the same industry.
SAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
91.85% 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 | 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.
A more expensive valuation may be justified as SAR's earnings are expected to grow with 14.22% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y14.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.48%, SAR is a good candidate for dividend investing.
SAR's Dividend Yield is rather good when compared to the industry average which is at 7.77. SAR pays more dividend than 83.26% of the companies in the same industry.
SAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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 2Y14.22%
EPS Next 3YN/A
24.9
+0.12 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.49%
Inst Owner Change0%
Ins Owners10.94%
Ins Owner Change0%
Market Cap390.18M
Analysts73.33
Price Target25.46 (2.25%)
Short Float %1.88%
Short Ratio1.99
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)-0.66%
PT rev (3m)-2.36%
EPS NQ rev (1m)-4.01%
EPS NQ rev (3m)-8.21%
EPS NY rev (1m)-12.17%
EPS NY rev (3m)-6.73%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.36 | ||
| P/S | 2.74 | ||
| P/FCF | 2.2 | ||
| P/OCF | 2.2 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.47
EY9.92%
EPS(NY)2.66
Fwd EY10.69%
FCF(TTM)11.34
FCFY45.54%
OCF(TTM)11.34
OCFY45.54%
SpS9.09
BVpS25.29
TBVpS25.29
PEG (NY)0.27
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 Y36.71%
EPS Next 2Y14.22%
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-14.5%
Revenue Next 2Y-6.96%
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