SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
USA - NYSE:SAR - US80349A2087 - Common Stock
21.85 USD
-0.09 (-0.41%)
21.75 USD
-0.1 (-0.46%)
We assign a fundamental rating of 5 out of 10 to SAR. SAR was compared to 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of SAR get a neutral evaluation. Nothing too spectacular is happening here. SAR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SAR had positive earnings in the past year.
In the past year SAR had a positive cash flow from operations.
SAR had positive earnings in each of the past 5 years.
SAR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
SAR has a Return On Assets of 2.93%. This is comparable to the rest of the industry: SAR outperforms 54.85% of its industry peers.
SAR has a Return On Equity (8.62%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.66%, SAR perfoms like the industry average, outperforming 40.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAR is below the industry average of 7.63%.
| 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
SAR has a better Profit Margin (27.19%) than 70.46% of its industry peers.
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 58.65% of the companies in the same industry.
SAR's Operating Margin has improved in the last couple of years.
SAR has a Gross Margin (38.25%) which is comparable to the rest of the industry.
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
The number of shares outstanding for SAR has been increased compared to 1 year ago.
Compared to 5 years ago, SAR has more shares outstanding
Compared to 1 year ago, SAR has an improved debt to assets ratio.
2.2 Solvency
SAR has an Altman-Z score of 0.64. 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 of 0.64. This is comparable to the rest of the industry: SAR outperforms 40.51% of its industry peers.
The Debt to FCF ratio of SAR is 9.02, which is on the high side as it means it would take SAR, 9.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.02, SAR is in line with its industry, outperforming 58.23% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that SAR has dependencies on debt financing.
SAR's Debt to Equity ratio of 1.92 is on the low side compared to the rest of the industry. SAR is outperformed by 79.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 9.02 | ||
| Altman-Z | 0.64 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 14.01 indicates that SAR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 14.01, SAR belongs to the top of the industry, outperforming 96.20% of the companies in the same industry.
A Quick Ratio of 14.01 indicates that SAR has no problem at all paying its short term obligations.
SAR has a Quick ratio of 14.01. This is amongst the best in the industry. SAR outperforms 96.20% of its industry peers.
| 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.
SAR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.46% yearly.
Looking at the last year, SAR shows a very negative growth in Revenue. The Revenue has decreased by -16.19% in the last year.
SAR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.56% yearly.
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
SAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.17% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 9.34 indicates a reasonable valuation of SAR.
Compared to the rest of the industry, the Price/Earnings ratio of SAR indicates a somewhat cheap valuation: SAR is cheaper than 73.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. SAR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.15, which indicates a very decent valuation of SAR.
Based on the Price/Forward Earnings ratio, SAR is valued a bit cheaper than the industry average as 75.11% of the companies are valued more expensively.
SAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SAR is valued cheaper than 86.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.03 | ||
| 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.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y8.17%
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 a higher than the industry average which is at 8.39.
Compared to an average S&P500 Dividend Yield of 2.40, SAR pays a better dividend.
| 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
21.85
-0.09 (-0.41%)
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 Cap351.79M
Revenue(TTM)130.12M
Net Income(TTM)35.38M
Analysts70.77
Price Target23.82 (9.02%)
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 | 9.34 | ||
| Fwd PE | 9.15 | ||
| P/S | 2.7 | ||
| P/FCF | 4.03 | ||
| P/OCF | 4.03 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.34
EY10.71%
EPS(NY)2.39
Fwd EY10.92%
FCF(TTM)5.42
FCFY24.8%
OCF(TTM)5.42
OCFY24.8%
SpS8.08
BVpS25.5
TBVpS25.5
PEG (NY)0.22
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 | 0.64 |
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.