SAFEHOLD INC (SAFE) Stock Fundamental Analysis
USA - NYSE:SAFE - US78646V1070 - REIT
15.31 USD
+0.39 (+2.61%)
15.31 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. SAFE has an average financial health and profitability rating. SAFE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SAFE was profitable.
SAFE had a positive operating cash flow in the past year.
In multiple years SAFE reported negative net income over the last 5 years.
In the past 5 years SAFE always reported a positive cash flow from operatings.
1.2 Ratios
SAFE's Return On Assets of 1.45% is in line compared to the rest of the industry. SAFE outperforms 41.38% of its industry peers.
The Return On Equity of SAFE (4.33%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.40%, SAFE is doing worse than 62.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAFE is in line with the industry average of 4.79%.
The 3 year average ROIC (3.16%) for SAFE is below the current ROIC(3.40%), indicating increased profibility in the last year.
| 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.
The Gross Margin of SAFE (98.89%) is better 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.
Compared to 1 year ago, SAFE has more shares outstanding
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
SAFE has an Altman-Z score of 0.63. This is a bad value and indicates that SAFE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.63, SAFE is doing worse than 65.52% of the companies in the same industry.
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.
SAFE has a worse Debt to FCF ratio (83.76) than 72.41% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that SAFE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.87, SAFE is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 83.76 | ||
| Altman-Z | 0.63 |
ROIC/WACC0.6
WACC5.68%
2.3 Liquidity
SAFE has a Current Ratio of 6.70. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
SAFE has a better Current ratio (6.70) than 100.00% of its industry peers.
A Quick Ratio of 6.68 indicates that SAFE has no problem at all paying 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.
Measured over the past years, SAFE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.29% on average per year.
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 8.63% yearly.
EPS Next Y4.84%
EPS Next 2Y3.33%
EPS Next 3Y3.37%
EPS Next 5Y4.56%
Revenue Next Year5.96%
Revenue Next 2Y5.57%
Revenue Next 3Y5.79%
Revenue Next 5Y8.63%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.81, which indicates a very decent valuation of SAFE.
96.55% of the companies in the same industry are more expensive than SAFE, based on the Price/Earnings ratio.
SAFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.49.
The Price/Forward Earnings ratio is 9.13, which indicates a very decent valuation of SAFE.
SAFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAFE is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. SAFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.13 |
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 | 20.7 | ||
| EV/EBITDA | 18.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SAFE may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)N/A
EPS Next 2Y3.33%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
SAFE has a Yearly Dividend Yield of 4.73%, which is a nice return.
SAFE's Dividend Yield is comparable with the industry average which is at 6.13.
SAFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
The dividend of SAFE decreases each year by -2.09%.
SAFE has been paying a dividend for at least 10 years, so it has a reliable track record.
SAFE has decreased its dividend recently.
Dividend Growth(5Y)-2.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
49.49% of the earnings are spent on dividend by SAFE. This is a bit on the high side, but may be sustainable.
DP49.49%
EPS Next 2Y3.33%
EPS Next 3Y3.37%
15.31
+0.39 (+2.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.54%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change0.2%
Market Cap1.10B
Analysts78.75
Price Target21.65 (41.41%)
Short Float %6.47%
Short Ratio8.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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)-0.52%
PT rev (3m)-0.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.13 | ||
| P/S | 2.94 | ||
| P/FCF | 20.7 | ||
| P/OCF | 20.7 | ||
| P/B | 0.46 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 18.37 |
EPS(TTM)1.56
EY10.19%
EPS(NY)1.68
Fwd EY10.95%
FCF(TTM)0.74
FCFY4.83%
OCF(TTM)0.74
OCFY4.83%
SpS5.21
BVpS33.07
TBVpS30.19
PEG (NY)2.03
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 | 0.63 |
F-Score4
WACC5.68%
ROIC/WACC0.6
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 Y4.84%
EPS Next 2Y3.33%
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 5Y8.63%
EBIT growth 1Y0.53%
EBIT growth 3Y25.23%
EBIT growth 5Y23.09%
EBIT Next Year39.57%
EBIT Next 3Y18.01%
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