SAFEHOLD INC (SAFE) Stock Fundamental Analysis
NYSE:SAFE - New York Stock Exchange, Inc. - US78646V1070 - REIT - Currency: USD
Taking everything into account, SAFE scores 5 out of 10 in our fundamental rating. SAFE was compared to 30 industry peers in the Specialized REITs industry. SAFE has an average financial health and profitability rating. SAFE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAFE was profitable.
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.
Each year in the past 5 years SAFE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.53%, SAFE is doing worse than 60.00% of the companies in the same industry.
The Return On Equity of SAFE (4.51%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.33%, SAFE is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
SAFE had an Average Return On Invested Capital over the past 3 years of 3.16%. This is below the industry average of 5.35%.
The last Return On Invested Capital (3.33%) for SAFE is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 4.51% | ||
| ROIC | 3.33% |
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 has a better Profit Margin (28.92%) than 76.67% of its industry peers.
SAFE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 77.97%, SAFE belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
SAFE's Operating Margin has improved in the last couple of years.
SAFE has a better Gross Margin (98.84%) than 96.67% of its industry peers.
SAFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.97% | ||
| PM (TTM) | 28.92% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SAFE is destroying value.
The number of shares outstanding for SAFE has been increased compared to 1 year ago.
Compared to 5 years ago, SAFE has less shares outstanding
SAFE has a worse debt/assets ratio than last year.
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.
SAFE has a worse Altman-Z score (0.66) than 63.33% of its industry peers.
The Debt to FCF ratio of SAFE is 114.05, which is on the high side as it means it would take SAFE, 114.05 years of fcf income to pay off all of its debts.
SAFE has a worse Debt to FCF ratio (114.05) than 70.00% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that SAFE has dependencies on debt financing.
SAFE's Debt to Equity ratio of 1.84 is on the low side compared to the rest of the industry. SAFE is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 114.05 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.58
WACC5.77%
2.3 Liquidity
SAFE has a Current Ratio of 14.46. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
SAFE's Current ratio of 14.46 is amongst the best of the industry. SAFE outperforms 100.00% of its industry peers.
SAFE has a Quick Ratio of 14.40. This indicates that SAFE is financially healthy and has no problem in meeting its short term obligations.
SAFE has a better Quick ratio (14.40) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.46 | ||
| Quick Ratio | 14.4 |
3. Growth
3.1 Past
SAFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.28%, which is quite good.
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 3.70%.
The Revenue has been decreasing by -5.28% on average over the past years.
EPS 1Y (TTM)8.28%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%0%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%-10.83%
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.
The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y3.78%
EPS Next 3Y4.66%
EPS Next 5Y8.33%
Revenue Next Year5.32%
Revenue Next 2Y5.7%
Revenue Next 3Y6.67%
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.
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
The Price/Earnings ratio is 9.92, which indicates a very decent valuation of SAFE.
96.67% of the companies in the same industry are more expensive than SAFE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.10, SAFE is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.55, the valuation of SAFE can be described as very reasonable.
100.00% 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 20.74, SAFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.55 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 18.52 |
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)2.56
PEG (5Y)N/A
EPS Next 2Y3.78%
EPS Next 3Y4.66%
5. Dividend
5.1 Amount
SAFE has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 5.70, SAFE is paying slightly less dividend.
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 | 4.51% |
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.
Dividend Growth(5Y)-2.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
47.83% of the earnings are spent on dividend by SAFE. This is a bit on the high side, but may be sustainable.
DP47.83%
EPS Next 2Y3.78%
EPS Next 3Y4.66%
15.58
-0.57 (-3.53%)
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 Change0.18%
Market Cap1.12B
Analysts77.65
Price Target24.17 (55.13%)
Short Float %6.88%
Short Ratio8.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend0.71
Dividend Growth(5Y)-2.09%
DP47.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.1%
Min EPS beat(2)-3.12%
Max EPS beat(2)-1.08%
EPS beat(4)2
Avg EPS beat(4)2.75%
Min EPS beat(4)-3.12%
Max EPS beat(4)8.39%
EPS beat(8)4
Avg EPS beat(8)26.91%
EPS beat(12)7
Avg EPS beat(12)-55.84%
EPS beat(16)11
Avg EPS beat(16)40.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-1.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)3.75%
Revenue beat(8)4
Avg Revenue beat(8)7.76%
Revenue beat(12)6
Avg Revenue beat(12)16.49%
Revenue beat(16)7
Avg Revenue beat(16)5.74%
PT rev (1m)-4.15%
PT rev (3m)-8.49%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.55 | ||
| P/S | 3.05 | ||
| P/FCF | 29.47 | ||
| P/OCF | 29.47 | ||
| P/B | 0.48 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 18.52 |
EPS(TTM)1.57
EY10.08%
EPS(NY)1.63
Fwd EY10.47%
FCF(TTM)0.53
FCFY3.39%
OCF(TTM)0.53
OCFY3.39%
SpS5.11
BVpS32.73
TBVpS29.81
PEG (NY)2.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 4.51% | ||
| ROCE | 4.21% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.47% | ||
| OM | 77.97% | ||
| PM (TTM) | 28.92% | ||
| GM | 98.84% | ||
| FCFM | 10.35% |
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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 114.05 | ||
| Debt/EBITDA | 14.63 | ||
| Cap/Depr | 0% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 1.76 | ||
| Cash Conversion | 12.83% | ||
| Profit Quality | 35.79% | ||
| Current Ratio | 14.46 | ||
| Quick Ratio | 14.4 | ||
| Altman-Z | 0.66 |
F-Score5
WACC5.77%
ROIC/WACC0.58
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)8.28%
EPS 3Y-23.67%
EPS 5Y-15.29%
EPS Q2Q%0%
EPS Next Y3.87%
EPS Next 2Y3.78%
EPS Next 3Y4.66%
EPS Next 5Y8.33%
Revenue 1Y (TTM)3.7%
Revenue growth 3Y25.05%
Revenue growth 5Y-5.28%
Sales Q2Q%-10.83%
Revenue Next Year5.32%
Revenue Next 2Y5.7%
Revenue Next 3Y6.67%
Revenue Next 5Y4.59%
EBIT growth 1Y6.05%
EBIT growth 3Y25.23%
EBIT growth 5Y23.09%
EBIT Next Year40.08%
EBIT Next 3Y19.52%
EBIT Next 5Y18.18%
FCF growth 1Y1536.62%
FCF growth 3Y12.04%
FCF growth 5YN/A
OCF growth 1Y145.96%
OCF growth 3Y12.04%
OCF growth 5YN/A