SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
USA - NYSE:SAR - US80349A2087 - Common Stock
22.51 USD
+0.29 (+1.31%)
22.08 USD
-0.43 (-1.91%)
Overall SAR gets a fundamental rating of 5 out of 10. We evaluated SAR against 237 industry peers in the Capital Markets industry. SAR has an average financial health and profitability rating. SAR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SAR had positive earnings in the past year.
SAR had a positive operating cash flow in the past year.
In the past 5 years SAR has always been profitable.
In the past 5 years SAR reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of SAR (2.93%) is comparable to the rest of the industry.
The Return On Equity of SAR (8.62%) is comparable to the rest of the industry.
SAR has a worse Return On Invested Capital (2.66%) than 60.00% of its industry peers.
SAR had an Average Return On Invested Capital over the past 3 years of 3.34%. This is below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 8.62% | ||
| ROIC | 2.66% |
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
Looking at the Profit Margin, with a value of 27.19%, SAR is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
In the last couple of years the Profit Margin of SAR has declined.
Looking at the Operating Margin, with a value of 30.81%, SAR is in line with its industry, outperforming 58.72% of the companies in the same industry.
SAR's Operating Margin has improved in the last couple of years.
SAR has a worse Gross Margin (38.25%) than 60.00% of its industry peers.
SAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 27.19% | ||
| GM | 38.25% |
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
SAR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAR has more shares outstanding
The debt/assets ratio for SAR has been reduced compared to a year ago.
2.2 Solvency
SAR has an Altman-Z score of 0.65. This is a bad value and indicates that SAR is not financially healthy and even has some risk of bankruptcy.
SAR's Altman-Z score of 0.65 is in line compared to the rest of the industry. SAR outperforms 41.28% of its industry peers.
SAR has a debt to FCF ratio of 9.02. This is a negative value and a sign of low solvency as SAR would need 9.02 years to pay back of all of its debts.
SAR has a Debt to FCF ratio of 9.02. This is comparable to the rest of the industry: SAR outperforms 59.57% of its industry peers.
SAR has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
SAR has a Debt to Equity ratio of 1.92. This is in the lower half of the industry: SAR underperforms 79.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.02 | ||
| Altman-Z | 0.65 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SAR has a Current Ratio of 14.01. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 14.01, SAR belongs to the best of the industry, outperforming 96.17% of the companies in the same industry.
SAR has a Quick Ratio of 14.01. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 14.01, SAR belongs to the top of the industry, outperforming 96.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.01 | ||
| Quick Ratio | 14.01 |
3. Growth
3.1 Past
SAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.94%, which is quite impressive.
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 -16.19% 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)52.94%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%-13.4%
Revenue 1Y (TTM)-16.19%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-19.96%
3.2 Future
Based on estimates for the next years, SAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.17% on average per year.
Based on estimates for the next years, SAR will show a decrease in Revenue. The Revenue will decrease by -7.46% on average per year.
EPS Next Y42.66%
EPS Next 2Y8.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.8%
Revenue Next 2Y-7.46%
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
Based on the Price/Earnings ratio of 9.62, the valuation of SAR can be described as reasonable.
72.77% of the companies in the same industry are more expensive than SAR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.11. SAR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.43 indicates a reasonable valuation of SAR.
Based on the Price/Forward Earnings ratio, SAR is valued a bit cheaper than the industry average as 73.19% of the companies are valued more expensively.
SAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SAR is valued cheaper than 85.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.15 | ||
| 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)0.23
PEG (5Y)N/A
EPS Next 2Y8.17%
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 a higher than the industry average which is at 8.40.
SAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| 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 140.84% 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.
DP140.84%
EPS Next 2Y8.17%
EPS Next 3YN/A
22.51
+0.29 (+1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners15.44%
Inst Owner Change-1.92%
Ins Owners10.45%
Ins Owner Change0.28%
Market Cap362.41M
Revenue(TTM)130.12M
Net Income(TTM)35.38M
Analysts70.77
Price Target23.82 (5.82%)
Short Float %3.1%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
Yearly Dividend2.83
Dividend Growth(5Y)9.46%
DP140.84%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.38%
Min EPS beat(2)-2.81%
Max EPS beat(2)21.57%
EPS beat(4)1
Avg EPS beat(4)-30.27%
Min EPS beat(4)-107.09%
Max EPS beat(4)21.57%
EPS beat(8)2
Avg EPS beat(8)-44.73%
EPS beat(12)3
Avg EPS beat(12)-34.53%
EPS beat(16)5
Avg EPS beat(16)-34.41%
Revenue beat(2)2
Avg Revenue beat(2)8.71%
Min Revenue beat(2)6.55%
Max Revenue beat(2)10.88%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-9%
Max Revenue beat(4)10.88%
Revenue beat(8)4
Avg Revenue beat(8)0.29%
Revenue beat(12)7
Avg Revenue beat(12)3.21%
Revenue beat(16)9
Avg Revenue beat(16)2.81%
PT rev (1m)-4.53%
PT rev (3m)-4.83%
EPS NQ rev (1m)-11.47%
EPS NQ rev (3m)-11.1%
EPS NY rev (1m)1.92%
EPS NY rev (3m)4.35%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 9.43 | ||
| P/S | 2.79 | ||
| P/FCF | 4.15 | ||
| P/OCF | 4.15 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.34
EY10.4%
EPS(NY)2.39
Fwd EY10.6%
FCF(TTM)5.42
FCFY24.07%
OCF(TTM)5.42
OCFY24.07%
SpS8.08
BVpS25.5
TBVpS25.5
PEG (NY)0.23
PEG (5Y)N/A
Graham Number36.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 8.62% | ||
| ROCE | 3.36% | ||
| ROIC | 2.66% | ||
| ROICexc | 3.2% | ||
| ROICexgc | 3.2% | ||
| OM | 30.81% | ||
| PM (TTM) | 27.19% | ||
| GM | 38.25% | ||
| FCFM | 67.04% |
ROA(3y)1.8%
ROA(5y)2.62%
ROE(3y)5.56%
ROE(5y)6.88%
ROIC(3y)3.34%
ROIC(5y)3%
ROICexc(3y)3.72%
ROICexc(5y)3.29%
ROICexgc(3y)3.72%
ROICexgc(5y)3.29%
ROCE(3y)4.22%
ROCE(5y)3.8%
ROICexgc growth 3Y30.31%
ROICexgc growth 5Y10.28%
ROICexc growth 3Y30.28%
ROICexc growth 5Y10.29%
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%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.86 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 246.59% | ||
| Current Ratio | 14.01 | ||
| Quick Ratio | 14.01 | ||
| Altman-Z | 0.65 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.94%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%-13.4%
EPS Next Y42.66%
EPS Next 2Y8.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.19%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-19.96%
Revenue Next Year-15.8%
Revenue Next 2Y-7.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.99%
EBIT growth 3Y38.97%
EBIT growth 5Y27.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y180.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y180.85%
OCF growth 3YN/A
OCF growth 5YN/A
SARATOGA INVESTMENT CORP / SAR FAQ
Can you provide the ChartMill fundamental rating for SARATOGA INVESTMENT CORP?
ChartMill assigns a fundamental rating of 5 / 10 to SAR.
What is the valuation status for SAR stock?
ChartMill assigns a valuation rating of 6 / 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 4 / 10.
Can you provide the financial health for SAR stock?
The financial health rating of SARATOGA INVESTMENT CORP (SAR) is 4 / 10.
What is the expected EPS growth for SARATOGA INVESTMENT CORP (SAR) stock?
The Earnings per Share (EPS) of SARATOGA INVESTMENT CORP (SAR) is expected to grow by 42.66% in the next year.