SAUL CENTERS INC (BFS) Stock Fundamental Analysis
NYSE:BFS - New York Stock Exchange, Inc. - US8043951016 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to BFS. BFS was compared to 130 industry peers in the Diversified REITs industry. While BFS has a great profitability rating, there are quite some concerns on its financial health. BFS is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BFS had positive earnings in the past year.
BFS had a positive operating cash flow in the past year.
Each year in the past 5 years BFS has been profitable.
In the past 5 years BFS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BFS (1.69%) is better than 64.62% of its industry peers.
Looking at the Return On Equity, with a value of 10.96%, BFS belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.60%, BFS belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BFS is in line with the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 10.96% | ||
| ROIC | 4.6% |
ROA(3y)2.02%
ROA(5y)1.99%
ROE(3y)11.13%
ROE(5y)10.12%
ROIC(3y)4.81%
ROIC(5y)4.84%
1.3 Margins
Looking at the Profit Margin, with a value of 13.09%, BFS is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
In the last couple of years the Profit Margin of BFS has remained more or less at the same level.
BFS has a Operating Margin of 43.57%. This is amongst the best in the industry. BFS outperforms 88.46% of its industry peers.
BFS's Operating Margin has been stable in the last couple of years.
BFS's Gross Margin of 72.49% is fine compared to the rest of the industry. BFS outperforms 66.15% of its industry peers.
BFS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.57% | ||
| PM (TTM) | 13.09% | ||
| GM | 72.49% |
OM growth 3Y0.27%
OM growth 5Y-0.33%
PM growth 3Y-1.91%
PM growth 5Y-1.27%
GM growth 3Y-0.47%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BFS is destroying value.
The number of shares outstanding for BFS has been increased compared to 1 year ago.
The number of shares outstanding for BFS has been increased compared to 5 years ago.
The debt/assets ratio for BFS is higher compared to a year ago.
2.2 Solvency
BFS has an Altman-Z score of 0.35. This is a bad value and indicates that BFS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BFS (0.35) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.70 is on the high side and indicates that BFS has dependencies on debt financing.
With a Debt to Equity ratio value of 4.70, BFS is not doing good in the industry: 83.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.35 |
ROIC/WACC0.91
WACC5.04%
2.3 Liquidity
BFS has a Current Ratio of 0.76. This is a bad value and indicates that BFS is not financially healthy enough and could expect problems in meeting its short term obligations.
BFS has a Current ratio of 0.76. This is in the lower half of the industry: BFS underperforms 61.54% of its industry peers.
BFS has a Quick Ratio of 0.76. This is a bad value and indicates that BFS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, BFS perfoms like the industry average, outperforming 40.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for BFS have decreased strongly by -13.88% in the last year.
Measured over the past 5 years, BFS shows a small growth in Earnings Per Share. The EPS has been growing by 0.81% on average per year.
BFS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.00%.
BFS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.99% yearly.
EPS 1Y (TTM)-13.88%
EPS 3Y1.35%
EPS 5Y0.81%
EPS Q2Q%-35.56%
Revenue 1Y (TTM)5%
Revenue growth 3Y3.97%
Revenue growth 5Y2.99%
Sales Q2Q%7.19%
3.2 Future
The Earnings Per Share is expected to decrease by -10.25% on average over the next years. This is quite bad
Based on estimates for the next years, BFS will show a small growth in Revenue. The Revenue will grow by 7.90% on average per year.
EPS Next Y-12.63%
EPS Next 2Y-10.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.97%
Revenue Next 2Y7.74%
Revenue Next 3Y7.9%
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 decreasing.
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 21.59, BFS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BFS indicates a somewhat cheap valuation: BFS is cheaper than 79.23% of the companies listed in the same industry.
BFS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.82.
BFS is valuated rather expensively with a Price/Forward Earnings ratio of 24.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BFS indicates a rather cheap valuation: BFS is cheaper than 82.31% of the companies listed in the same industry.
BFS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 24.17 |
4.2 Price Multiples
BFS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The decent profitability rating of BFS may justify a higher PE ratio.
BFS's earnings are expected to decrease with -10.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)26.78
EPS Next 2Y-10.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BFS has a Yearly Dividend Yield of 6.76%, which is a nice return.
Compared to an average industry Dividend Yield of 6.45, BFS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, BFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
5.2 History
The dividend of BFS has a limited annual growth rate of 1.15%.
BFS has been paying a dividend for at least 10 years, so it has a reliable track record.
BFS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.15%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
BFS pays out 189.41% of its income as dividend. This is not a sustainable payout ratio.
BFS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP189.41%
EPS Next 2Y-10.25%
EPS Next 3YN/A
31.73
-0.49 (-1.52%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners46.19%
Inst Owner Change-0.04%
Ins Owners50.09%
Ins Owner Change17.54%
Market Cap768.50M
Analysts80
Price Target49.47 (55.91%)
Short Float %1.56%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
Yearly Dividend2.81
Dividend Growth(5Y)1.15%
DP189.41%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.47%
Min EPS beat(2)-27.39%
Max EPS beat(2)-15.55%
EPS beat(4)2
Avg EPS beat(4)-2.64%
Min EPS beat(4)-27.39%
Max EPS beat(4)21.86%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)1.99%
Revenue beat(4)3
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)1.99%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.19%
PT rev (3m)3.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.59 | ||
| Fwd PE | 24.17 | ||
| P/S | 2.8 | ||
| P/FCF | N/A | ||
| P/OCF | 6.53 | ||
| P/B | 2.34 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)1.47
EY4.63%
EPS(NY)1.31
Fwd EY4.14%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)4.86
OCFY15.3%
SpS11.35
BVpS13.56
TBVpS13.56
PEG (NY)N/A
PEG (5Y)26.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 10.96% | ||
| ROCE | 5.83% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 4.64% | ||
| OM | 43.57% | ||
| PM (TTM) | 13.09% | ||
| GM | 72.49% | ||
| FCFM | N/A |
ROA(3y)2.02%
ROA(5y)1.99%
ROE(3y)11.13%
ROE(5y)10.12%
ROIC(3y)4.81%
ROIC(5y)4.84%
ROICexc(3y)4.84%
ROICexc(5y)4.88%
ROICexgc(3y)4.88%
ROICexgc(5y)4.91%
ROCE(3y)6.09%
ROCE(5y)6.12%
ROICexcg growth 3Y-2.38%
ROICexcg growth 5Y-2.84%
ROICexc growth 3Y-2.29%
ROICexc growth 5Y-2.91%
OM growth 3Y0.27%
OM growth 5Y-0.33%
PM growth 3Y-1.91%
PM growth 5Y-1.27%
GM growth 3Y-0.47%
GM growth 5Y-0.49%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.94 | ||
| Cap/Depr | 315.69% | ||
| Cap/Sales | 60.89% | ||
| Interest Coverage | 2.14 | ||
| Cash Conversion | 68.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.35 |
F-Score5
WACC5.04%
ROIC/WACC0.91
Cap/Depr(3y)344.4%
Cap/Depr(5y)250.98%
Cap/Sales(3y)65.54%
Cap/Sales(5y)48.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.88%
EPS 3Y1.35%
EPS 5Y0.81%
EPS Q2Q%-35.56%
EPS Next Y-12.63%
EPS Next 2Y-10.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5%
Revenue growth 3Y3.97%
Revenue growth 5Y2.99%
Sales Q2Q%7.19%
Revenue Next Year8.97%
Revenue Next 2Y7.74%
Revenue Next 3Y7.9%
Revenue Next 5YN/A
EBIT growth 1Y0.54%
EBIT growth 3Y4.25%
EBIT growth 5Y2.64%
EBIT Next Year51.55%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-91.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.25%
OCF growth 3Y0.79%
OCF growth 5Y0.99%