SAFEHOLD INC (SAFE) Stock Fundamental Analysis
NYSE:SAFE - New York Stock Exchange, Inc. - US78646V1070 - REIT - Currency: USD
SAFE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. SAFE has only an average score on both its financial health and profitability. SAFE has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: SAFE reported negative net income in multiple years.
Each year in the past 5 years SAFE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SAFE (1.51%) is comparable to the rest of the industry.
The Return On Equity of SAFE (4.44%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.36%, SAFE is doing worse than 63.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAFE is below the industry average of 5.27%.
The last Return On Invested Capital (3.36%) for SAFE is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 4.44% | ||
| ROIC | 3.36% |
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
Looking at the Profit Margin, with a value of 28.20%, SAFE is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
SAFE's Profit Margin has declined in the last couple of years.
The Operating Margin of SAFE (78.22%) is better than 96.67% of its industry peers.
In the last couple of years the Operating Margin of SAFE has grown nicely.
SAFE's Gross Margin of 98.84% is amongst the best of the industry. SAFE outperforms 96.67% of its industry peers.
SAFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.22% | ||
| PM (TTM) | 28.2% | ||
| GM | 98.84% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAFE is destroying value.
The number of shares outstanding for SAFE has been increased compared to 1 year ago.
SAFE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAFE is higher compared to a year ago.
2.2 Solvency
SAFE has an Altman-Z score of 0.66. This is a bad value and indicates that SAFE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SAFE (0.66) is worse than 73.33% of its industry peers.
SAFE has a debt to FCF ratio of 87.14. This is a negative value and a sign of low solvency as SAFE would need 87.14 years to pay back of all of its debts.
SAFE's Debt to FCF ratio of 87.14 is on the low side compared to the rest of the industry. SAFE is outperformed by 70.00% of its industry peers.
SAFE has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.85, SAFE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 87.14 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.59
WACC5.73%
2.3 Liquidity
SAFE has a Current Ratio of 14.83. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
SAFE has a Current ratio of 14.83. This is amongst the best in the industry. SAFE outperforms 100.00% of its industry peers.
SAFE has a Quick Ratio of 14.78. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SAFE (14.78) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.83 | ||
| Quick Ratio | 14.78 |
3. Growth
3.1 Past
SAFE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.48%.
The earnings per share for SAFE have been decreasing by -15.29% on average. This is quite bad
SAFE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.71%.
Measured over the past years, SAFE shows a decrease in Revenue. The Revenue has been decreasing by -5.28% on average per year.
EPS 1Y (TTM)7.48%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%2.33%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%4.81%
3.2 Future
SAFE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.33% yearly.
SAFE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y4.46%
EPS Next 2Y3.82%
EPS Next 3Y3.23%
EPS Next 5Y8.33%
Revenue Next Year5.26%
Revenue Next 2Y5.31%
Revenue Next 3Y5.66%
Revenue Next 5Y4.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 9.54 indicates a reasonable valuation of SAFE.
SAFE's Price/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/Earnings ratio is at 26.25. SAFE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.90 indicates a reasonable 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.
When comparing the Price/Forward Earnings ratio of SAFE to the average of the S&P500 Index (22.15), we can say SAFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
SAFE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAFE is cheaper than 63.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SAFE is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.69 | ||
| EV/EBITDA | 18.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAFE does not grow enough to justify the current Price/Earnings ratio.
SAFE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y3.82%
EPS Next 3Y3.23%
5. Dividend
5.1 Amount
SAFE has a Yearly Dividend Yield of 4.80%, which is a nice return.
SAFE's Dividend Yield is comparable with the industry average which is at 5.71.
SAFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of SAFE decreases each year by -2.09%.
SAFE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
48.53% of the earnings are spent on dividend by SAFE. This is a bit on the high side, but may be sustainable.
DP48.53%
EPS Next 2Y3.82%
EPS Next 3Y3.23%
15.07
-0.2 (-1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners69.17%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0.34%
Market Cap1.08B
Analysts77.65
Price Target23.97 (59.06%)
Short Float %6.72%
Short Ratio8.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend0.71
Dividend Growth(5Y)-2.09%
DP48.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.96%
Min EPS beat(2)-3.12%
Max EPS beat(2)1.2%
EPS beat(4)2
Avg EPS beat(4)1.35%
Min EPS beat(4)-3.12%
Max EPS beat(4)8.39%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)-59.94%
EPS beat(16)11
Avg EPS beat(16)31.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)-0.02%
Revenue beat(8)3
Avg Revenue beat(8)2.03%
Revenue beat(12)6
Avg Revenue beat(12)18.78%
Revenue beat(16)7
Avg Revenue beat(16)8.32%
PT rev (1m)-3.9%
PT rev (3m)-8.01%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 8.9 | ||
| P/S | 2.92 | ||
| P/FCF | 21.69 | ||
| P/OCF | 21.69 | ||
| P/B | 0.46 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 18.11 |
EPS(TTM)1.58
EY10.48%
EPS(NY)1.69
Fwd EY11.23%
FCF(TTM)0.69
FCFY4.61%
OCF(TTM)0.69
OCFY4.61%
SpS5.16
BVpS32.78
TBVpS29.88
PEG (NY)2.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 4.44% | ||
| ROCE | 4.26% | ||
| ROIC | 3.36% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 3.5% | ||
| OM | 78.22% | ||
| PM (TTM) | 28.2% | ||
| GM | 98.84% | ||
| FCFM | 13.46% |
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 | 1.85 | ||
| Debt/FCF | 87.14 | ||
| Debt/EBITDA | 14.51 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.65% | ||
| Profit Quality | 47.72% | ||
| Current Ratio | 14.83 | ||
| Quick Ratio | 14.78 | ||
| Altman-Z | 0.66 |
F-Score4
WACC5.73%
ROIC/WACC0.59
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)7.48%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%2.33%
EPS Next Y4.46%
EPS Next 2Y3.82%
EPS Next 3Y3.23%
EPS Next 5Y8.33%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%4.81%
Revenue Next Year5.26%
Revenue Next 2Y5.31%
Revenue Next 3Y5.66%
Revenue Next 5Y4.59%
EBIT growth 1Y3.63%
EBIT growth 3Y25.23%
EBIT growth 5Y23.09%
EBIT Next Year39.11%
EBIT Next 3Y17.96%
EBIT Next 5Y18.18%
FCF growth 1Y18.34%
FCF growth 3Y12.04%
FCF growth 5YN/A
OCF growth 1Y-30.32%
OCF growth 3Y12.04%
OCF growth 5YN/A