SAFEHOLD INC (SAFE)
US78646V1070 - REIT
SAFE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Specialized REITs industry. SAFE has only an average score on both its financial health and profitability. SAFE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SAFE had positive earnings in the past year.
In the past year SAFE had a positive cash flow from operations.
In multiple years SAFE reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: SAFE reported negative operating cash flow in multiple years.
1.2 Ratios
SAFE's Return On Assets of -0.84% is on the low side compared to the rest of the industry. SAFE is outperformed by 85.71% of its industry peers.
The Return On Equity of SAFE (-2.47%) is worse than 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.30%, SAFE is doing worse than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -2.47% | ||
| ROIC | 3.3% |
ROA(3y)4.55%
ROA(5y)3.6%
ROE(3y)12.86%
ROE(5y)11.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SAFE's Operating Margin of 76.25% is amongst the best of the industry. SAFE outperforms 96.43% of its industry peers.
SAFE's Operating Margin has improved in the last couple of years.
SAFE has a Gross Margin of 98.66%. This is amongst the best in the industry. SAFE outperforms 96.43% of its industry peers.
SAFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.25% | ||
| PM (TTM) | N/A | ||
| GM | 98.66% |
OM growth 3Y54.17%
OM growth 5Y35.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.61%
GM growth 5Y20.6%
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 less shares outstanding
The number of shares outstanding for SAFE has been increased compared to 5 years ago.
Compared to 1 year ago, SAFE has a worse debt to assets ratio.
2.2 Solvency
SAFE has an Altman-Z score of 0.68. 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 0.68, SAFE is doing worse than 64.29% of the companies in the same industry.
The Debt to FCF ratio of SAFE is 1752.86, which is on the high side as it means it would take SAFE, 1752.86 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1752.86, SAFE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
SAFE has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SAFE (1.82) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | 1752.86 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.42
WACC7.89%
2.3 Liquidity
A Current Ratio of 14.12 indicates that SAFE has no problem at all paying its short term obligations.
SAFE has a Current ratio of 14.12. This is amongst the best in the industry. SAFE outperforms 100.00% of its industry peers.
A Quick Ratio of 14.04 indicates that SAFE has no problem at all paying its short term obligations.
SAFE's Quick ratio of 14.04 is amongst the best of the industry. SAFE outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.12 | ||
| Quick Ratio | 14.04 |
3. Growth
3.1 Past
SAFE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -96.58%.
Measured over the past years, SAFE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.77% on average per year.
SAFE shows a strong growth in Revenue. In the last year, the Revenue has grown by 55.14%.
Measured over the past years, SAFE shows a very negative growth in Revenue. The Revenue has been decreasing by -15.07% on average per year.
EPS 1Y (TTM)-96.58%
EPS 3Y7.41%
EPS 5Y17.77%
EPS growth Q2Q106.26%
Revenue 1Y (TTM)55.14%
Revenue growth 3Y-12.75%
Revenue growth 5Y-15.07%
Revenue growth Q2Q240.02%
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 6.31% on average per year.
The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y5.96%
EPS Next 2Y19.35%
EPS Next 3Y11.03%
EPS Next 5Y6.31%
Revenue Next Year5.58%
Revenue Next 2Y25.63%
Revenue Next 3Y7.4%
Revenue Next 5Y5.76%
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.
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
SAFE is valuated correctly with a Price/Earnings ratio of 13.72.
Based on the Price/Earnings ratio, SAFE is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
SAFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
With a Price/Forward Earnings ratio of 12.95, SAFE is valued correctly.
92.86% of the companies in the same industry are more expensive than SAFE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.24, SAFE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAFE is valued a bit more expensive than 71.43% of the companies in the same industry.
SAFE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SAFE is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 611.11 | ||
| EV/EBITDA | 19.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.3
PEG (5Y)0.77
EPS Next 2Y19.35%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, SAFE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.94, SAFE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, SAFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of SAFE decreases each year by -15.04%.
SAFE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-15.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SAFE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-83.68%
EPS Next 2Y19.35%
EPS Next 3Y11.03%
SAFEHOLD INC
NYSE:SAFE (5/13/2024, 7:04:00 PM)
After market: 19.89 0 (0%)19.89
+0.4 (+2.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 12.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.3
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -2.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 76.25% | ||
| PM (TTM) | N/A | ||
| GM | 98.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 14.12 | ||
| Quick Ratio | 14.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-96.58%
EPS 3Y7.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)55.14%
Revenue growth 3Y-12.75%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y