SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAJ - US80349A8852
25.6625 USD
+0.17 (+0.69%)
Taking everything into account, SAJ scores 4 out of 10 in our fundamental rating. SAJ was compared to 238 industry peers in the Capital Markets industry. While SAJ seems to be doing ok healthwise, there are quite some concerns on its profitability. SAJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SAJ was profitable.
- In the past year SAJ has reported a negative cash flow from operations.
- In the past 5 years SAJ has always been profitable.
- In the past 5 years SAJ reported 4 times negative operating cash flow.
1.2 Ratios
- The Return On Assets of SAJ (3.22%) is comparable to the rest of the industry.
- SAJ has a Return On Equity of 9.33%. This is comparable to the rest of the industry: SAJ outperforms 55.46% of its industry peers.
- SAJ has a Return On Invested Capital of 2.49%. This is in the lower half of the industry: SAJ underperforms 61.76% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SAJ is below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 9.33% | ||
| ROIC | 2.49% |
ROA(3y)1.8%
ROA(5y)2.62%
ROE(3y)5.56%
ROE(5y)6.88%
ROIC(3y)3.34%
ROIC(5y)3%
1.3 Margins
- SAJ's Profit Margin of 30.62% is fine compared to the rest of the industry. SAJ outperforms 74.79% of its industry peers.
- In the last couple of years the Profit Margin of SAJ has declined.
- SAJ has a Operating Margin (29.55%) which is comparable to the rest of the industry.
- SAJ's Operating Margin has improved in the last couple of years.
- The Gross Margin of SAJ (37.43%) is worse than 62.18% of its industry peers.
- In the last couple of years the Gross Margin of SAJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.55% | ||
| PM (TTM) | 30.62% | ||
| GM | 37.43% |
OM growth 3Y8.45%
OM growth 5Y5.8%
PM growth 3Y-33.67%
PM growth 5Y-27.68%
GM growth 3Y5.15%
GM growth 5Y4.57%
2. Health
2.1 Basic Checks
- The number of shares outstanding for SAJ has been increased compared to 1 year ago.
- SAJ has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SAJ has an improved debt to assets ratio.
2.2 Solvency
- SAJ has an Altman-Z score of 0.65. This is a bad value and indicates that SAJ is not financially healthy and even has some risk of bankruptcy.
- SAJ has a Altman-Z score (0.65) which is in line with its industry peers.
- SAJ has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
- SAJ has a Debt to Equity ratio of 1.87. This is in the lower half of the industry: SAJ underperforms 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- SAJ has a Current Ratio of 11.66. This indicates that SAJ is financially healthy and has no problem in meeting its short term obligations.
- SAJ has a better Current ratio (11.66) than 91.60% of its industry peers.
- A Quick Ratio of 11.66 indicates that SAJ has no problem at all paying its short term obligations.
- The Quick ratio of SAJ (11.66) is better than 91.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.66 | ||
| Quick Ratio | 11.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 187.32% over the past year.
- Measured over the past years, SAJ shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.46% on average per year.
- The Revenue for SAJ has decreased by -18.68% in the past year. This is quite bad
- The Revenue has been growing by 20.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)187.32%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%16.26%
Revenue 1Y (TTM)-18.68%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-2.34%
3.2 Future
- Based on estimates for the next years, SAJ will show a small growth in Earnings Per Share. The EPS will grow by 7.43% on average per year.
- Based on estimates for the next years, SAJ will show a decrease in Revenue. The Revenue will decrease by -7.61% on average per year.
EPS Next Y42.66%
EPS Next 2Y7.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.8%
Revenue Next 2Y-7.61%
Revenue Next 3YN/A
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 accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.58, SAJ is valued correctly.
- The rest of the industry has a similar Price/Earnings ratio as SAJ.
- The average S&P500 Price/Earnings ratio is at 27.32. SAJ is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.90, the valuation of SAJ can be described as very reasonable.
- 69.33% of the companies in the same industry are more expensive than SAJ, based on the Price/Forward Earnings ratio.
- SAJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y7.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- SAJ has a Yearly Dividend Yield of 12.48%, which is a nice return.
- SAJ's Dividend Yield is rather good when compared to the industry average which is at 6.10. SAJ pays more dividend than 83.19% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, SAJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
5.2 History
- On average, the dividend of SAJ grows each year by 9.46%, which is quite nice.
- SAJ has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)9.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- SAJ pays out 134.05% of its income as dividend. This is not a sustainable payout ratio.
- SAJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP134.05%
EPS Next 2Y7.43%
EPS Next 3YN/A
SARATOGA INVESTMENT CORP - SAR 8 10/31/27 / SAJ FAQ
Can you provide the ChartMill fundamental rating for SARATOGA INVESTMENT CORP - SAR 8 10/31/27?
ChartMill assigns a fundamental rating of 4 / 10 to SAJ.
Can you provide the valuation status for SARATOGA INVESTMENT CORP - SAR 8 10/31/27?
ChartMill assigns a valuation rating of 4 / 10 to SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ). This can be considered as Fairly Valued.
How profitable is SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ) stock?
SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ) has a profitability rating of 3 / 10.
What is the expected EPS growth for SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ) stock?
The Earnings per Share (EPS) of SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ) is expected to grow by 42.66% in the next year.
Can you provide the dividend sustainability for SAJ stock?
The dividend rating of SARATOGA INVESTMENT CORP - SAR 8 10/31/27 (SAJ) is 5 / 10 and the dividend payout ratio is 134.05%.