SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
NYSE:SAR - New York Stock Exchange, Inc. - US80349A2087 - Common Stock - Currency: USD
SAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 230 industry peers in the Capital Markets industry. SAR has an average financial health and profitability rating. SAR is cheap, but on the other hand it scores bad on growth. SAR also has an excellent dividend rating.
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.
Of the past 5 years SAR 4 years were profitable.
SAR had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
SAR's Return On Assets of 2.79% is in line compared to the rest of the industry. SAR outperforms 51.30% of its industry peers.
Looking at the Return On Equity, with a value of 9.09%, SAR is in line with its industry, outperforming 50.43% of the companies in the same industry.
SAR has a Return On Invested Capital of 3.80%. This is comparable to the rest of the industry: SAR outperforms 49.13% of its industry peers.
SAR had an Average Return On Invested Capital over the past 3 years of 2.75%. This is below the industry average of 7.27%.
The 3 year average ROIC (2.75%) for SAR is below the current ROIC(3.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 9.09% | ||
| ROIC | 3.8% |
ROA(3y)2.75%
ROA(5y)4.25%
ROE(3y)7.46%
ROE(5y)9.11%
ROIC(3y)2.75%
ROIC(5y)2.77%
1.3 Margins
SAR has a better Profit Margin (22.01%) than 63.91% of its industry peers.
SAR's Profit Margin has declined in the last couple of years.
SAR's Operating Margin of 37.41% is fine compared to the rest of the industry. SAR outperforms 65.22% of its industry peers.
SAR's Operating Margin has improved in the last couple of years.
SAR has a Gross Margin of 43.54%. This is comparable to the rest of the industry: SAR outperforms 42.17% of its industry peers.
In the last couple of years the Gross Margin of SAR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.41% | ||
| PM (TTM) | 22.01% | ||
| GM | 43.54% |
OM growth 3Y-0.42%
OM growth 5Y1.81%
PM growth 3Y-37.64%
PM growth 5Y-30.67%
GM growth 3Y-2.5%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
There is no outstanding debt for SAR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SAR has an Altman-Z score of 0.76. This is a bad value and indicates that SAR is not financially healthy and even has some risk of bankruptcy.
SAR has a Altman-Z score (0.76) which is comparable to the rest of the industry.
SAR has a debt to FCF ratio of 4.26. This is a neutral value as SAR would need 4.26 years to pay back of all of its debts.
SAR has a better Debt to FCF ratio (4.26) than 69.13% of its industry peers.
SAR has a Debt/Equity ratio of 2.24. This is a high value indicating a heavy dependency on external financing.
SAR has a Debt to Equity ratio of 2.24. This is in the lower half of the industry: SAR underperforms 76.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 0.76 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 15.00 indicates that SAR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 15.00, SAR belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
A Quick Ratio of 15.00 indicates that SAR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 15.00, SAR belongs to the best of the industry, outperforming 96.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 15 | ||
| Quick Ratio | 15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 187.32% over the past year.
The earnings per share for SAR have been decreasing by -18.46% on average. This is quite bad
EPS 1Y (TTM)187.32%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%-112.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.22%
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 14.57% on average per year.
SAR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.23% yearly.
EPS Next Y55.64%
EPS Next 2Y14.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.68%
Revenue Next 2Y-7.23%
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.
4. Valuation
4.1 Price/Earnings Ratio
SAR is valuated reasonably with a Price/Earnings ratio of 11.99.
Based on the Price/Earnings ratio, SAR is valued a bit cheaper than the industry average as 64.35% of the companies are valued more expensively.
SAR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
SAR is valuated cheaply with a Price/Forward Earnings ratio of 7.71.
SAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAR is cheaper than 88.70% of the companies in the same industry.
SAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAR indicates a rather cheap valuation: SAR is cheaper than 93.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.78 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SAR's earnings are expected to grow with 14.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y14.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.48%, SAR is a good candidate for dividend investing.
SAR's Dividend Yield is rather good when compared to the industry average which is at 8.20. SAR pays more dividend than 80.43% of the companies in the same industry.
SAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
5.2 History
On average, the dividend of SAR grows each year by 7.90%, 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)7.9%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
105.50% of the earnings are spent on dividend by SAR. This is not a sustainable payout ratio.
The dividend of SAR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP105.5%
EPS Next 2Y14.57%
EPS Next 3YN/A
NYSE:SAR (5/22/2025, 12:21:27 PM)
24.465
+0.05 (+0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners16.87%
Inst Owner Change16.28%
Ins Owners11.3%
Ins Owner Change-0.82%
Market Cap351.07M
Analysts76.67
Price Target26.07 (6.56%)
Short Float %1.84%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
Yearly Dividend2.51
Dividend Growth(5Y)7.9%
DP105.5%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.39%
Min EPS beat(2)-32.73%
Max EPS beat(2)1.95%
EPS beat(4)1
Avg EPS beat(4)-34.92%
Min EPS beat(4)-59.46%
Max EPS beat(4)1.95%
EPS beat(8)2
Avg EPS beat(8)-38.47%
EPS beat(12)3
Avg EPS beat(12)-41.26%
EPS beat(16)7
Avg EPS beat(16)-4.8%
Revenue beat(2)1
Avg Revenue beat(2)2.85%
Min Revenue beat(2)-9%
Max Revenue beat(2)14.69%
Revenue beat(4)2
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-18.38%
Max Revenue beat(4)14.69%
Revenue beat(8)4
Avg Revenue beat(8)2.17%
Revenue beat(12)7
Avg Revenue beat(12)3.29%
Revenue beat(16)10
Avg Revenue beat(16)4.06%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 7.71 | ||
| P/S | 2.27 | ||
| P/FCF | 1.78 | ||
| P/OCF | 1.78 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.04
EY8.34%
EPS(NY)3.18
Fwd EY12.98%
FCF(TTM)13.71
FCFY56.06%
OCF(TTM)13.71
OCFY56.06%
SpS10.79
BVpS26.12
TBVpS26.12
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 9.09% | ||
| ROCE | 4.81% | ||
| ROIC | 3.8% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 4.81% | ||
| OM | 37.41% | ||
| PM (TTM) | 22.01% | ||
| GM | 43.54% | ||
| FCFM | 127.14% |
ROA(3y)2.75%
ROA(5y)4.25%
ROE(3y)7.46%
ROE(5y)9.11%
ROIC(3y)2.75%
ROIC(5y)2.77%
ROICexc(3y)2.93%
ROICexc(5y)2.95%
ROICexgc(3y)2.93%
ROICexgc(5y)2.95%
ROCE(3y)3.49%
ROCE(5y)3.51%
ROICexcg growth 3Y5.99%
ROICexcg growth 5Y2.82%
ROICexc growth 3Y6.01%
ROICexc growth 5Y2.83%
OM growth 3Y-0.42%
OM growth 5Y1.81%
PM growth 3Y-37.64%
PM growth 5Y-30.67%
GM growth 3Y-2.5%
GM growth 5Y0.75%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 577.63% | ||
| Current Ratio | 15 | ||
| Quick Ratio | 15 | ||
| Altman-Z | 0.76 |
F-Score7
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)187.32%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%-112.82%
EPS Next Y55.64%
EPS Next 2Y14.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.22%
Revenue Next Year-13.68%
Revenue Next 2Y-7.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.8%
EBIT growth 3Y35.03%
EBIT growth 5Y26.94%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y163.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y163.66%
OCF growth 3YN/A
OCF growth 5YN/A