SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SAR - US80349A2087 - Common Stock
23.42 USD
+0.13 (+0.56%)
Taking everything into account, SAR scores 4 out of 10 in our fundamental rating. SAR was compared to 237 industry peers in the Capital Markets industry. SAR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SAR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SAR was profitable.
- In the past year SAR has reported a negative cash flow from operations.
- SAR had positive earnings in each of the past 5 years.
- In the past 5 years SAR reported 4 times negative operating cash flow.
1.2 Ratios
- SAR has a Return On Assets of 3.22%. This is comparable to the rest of the industry: SAR outperforms 54.01% of its industry peers.
- The Return On Equity of SAR (9.33%) is comparable to the rest of the industry.
- SAR's Return On Invested Capital of 2.49% is on the low side compared to the rest of the industry. SAR is outperformed by 60.34% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SAR 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
- SAR has a Profit Margin of 30.62%. This is in the better half of the industry: SAR outperforms 76.37% of its industry peers.
- SAR's Profit Margin has declined in the last couple of years.
- The Operating Margin of SAR (29.55%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of SAR has grown nicely.
- SAR has a Gross Margin of 37.43%. This is in the lower half of the industry: SAR underperforms 60.76% of its industry peers.
- In the last couple of years the Gross Margin of SAR 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
- Compared to 1 year ago, SAR has more shares outstanding
- SAR has more shares outstanding than it did 5 years ago.
- SAR has a better debt/assets ratio than last year.
2.2 Solvency
- SAR has an Altman-Z score of 0.62. This is a bad value and indicates that SAR is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.62, SAR perfoms like the industry average, outperforming 43.88% of the companies in the same industry.
- A Debt/Equity ratio of 1.87 is on the high side and indicates that SAR has dependencies on debt financing.
- SAR's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. SAR is outperformed by 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- SAR has a Current Ratio of 11.66. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
- SAR has a better Current ratio (11.66) than 93.25% of its industry peers.
- A Quick Ratio of 11.66 indicates that SAR has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 11.66, SAR belongs to the top of the industry, outperforming 93.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.66 | ||
| Quick Ratio | 11.66 |
3. Growth
3.1 Past
- The earnings per share for SAR have decreased by -1.61% in the last year.
- The earnings per share for SAR have been decreasing by -18.46% on average. This is quite bad
- Looking at the last year, SAR shows a very negative growth in Revenue. The Revenue has decreased by -18.68% in the last year.
- Measured over the past years, SAR shows a very strong growth in Revenue. The Revenue has been growing by 20.56% on average per year.
EPS 1Y (TTM)-1.61%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%15.62%
Revenue 1Y (TTM)-18.68%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-2.34%
3.2 Future
- The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
- The Revenue is expected to decrease by -7.89% on average over the next years.
EPS Next Y37.04%
EPS Next 2Y8.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.48%
Revenue Next 2Y-7.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.60, the valuation of SAR can be described as very reasonable.
- 72.15% of the companies in the same industry are more expensive than SAR, based on the Price/Earnings ratio.
- SAR is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- SAR is valuated reasonably with a Price/Forward Earnings ratio of 9.68.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SAR indicates a somewhat cheap valuation: SAR is cheaper than 77.22% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, SAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.68 |
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)0.26
PEG (5Y)N/A
EPS Next 2Y8.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- SAR has a Yearly Dividend Yield of 12.48%, which is a nice return.
- SAR's Dividend Yield is rather good when compared to the industry average which is at 5.87. SAR pays more dividend than 83.97% of the companies in the same industry.
- SAR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
5.2 History
- On average, the dividend of SAR grows each year by 9.46%, which is quite nice.
- SAR has paid a dividend for at least 10 years, which is a reliable track record.
- SAR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.46%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- SAR pays out 134.05% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of SAR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP134.05%
EPS Next 2Y8.9%
EPS Next 3YN/A
SARATOGA INVESTMENT CORP / SAR FAQ
What is the ChartMill fundamental rating of SARATOGA INVESTMENT CORP (SAR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SAR.
What is the valuation status of SARATOGA INVESTMENT CORP (SAR) stock?
ChartMill assigns a valuation rating of 5 / 10 to SARATOGA INVESTMENT CORP (SAR). This can be considered as Fairly Valued.
How profitable is SARATOGA INVESTMENT CORP (SAR) stock?
SARATOGA INVESTMENT CORP (SAR) has a profitability rating of 3 / 10.
How financially healthy is SARATOGA INVESTMENT CORP?
The financial health rating of SARATOGA INVESTMENT CORP (SAR) is 4 / 10.
Can you provide the expected EPS growth for SAR stock?
The Earnings per Share (EPS) of SARATOGA INVESTMENT CORP (SAR) is expected to grow by 37.04% in the next year.