SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
USA - NYSE:SAR - US80349A2087 - Common Stock
21.485 USD
-0.57 (-2.56%)
Overall SAR gets a fundamental rating of 5 out of 10. We evaluated SAR against 238 industry peers in the Capital Markets industry. SAR has an average financial health and profitability rating. SAR is valued quite cheap, while showing a decent growth score. This is a good combination! Finally SAR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SAR was profitable.
SAR had a positive operating cash flow in the past year.
Each year in the past 5 years SAR has been profitable.
SAR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
SAR has a Return On Assets (2.95%) which is in line with its industry peers.
SAR has a Return On Equity of 8.93%. This is comparable to the rest of the industry: SAR outperforms 50.42% of its industry peers.
With a Return On Invested Capital value of 3.30%, SAR perfoms like the industry average, outperforming 43.70% of the companies in the same industry.
SAR had an Average Return On Invested Capital over the past 3 years of 3.34%. This is below the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 8.93% | ||
| ROIC | 3.3% |
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's Profit Margin of 24.85% is fine compared to the rest of the industry. SAR outperforms 65.55% of its industry peers.
In the last couple of years the Profit Margin of SAR has declined.
SAR has a Operating Margin of 34.62%. This is in the better half of the industry: SAR outperforms 63.03% of its industry peers.
SAR's Operating Margin has improved in the last couple of years.
SAR's Gross Margin of 41.58% is in line compared to the rest of the industry. SAR outperforms 44.12% of its industry peers.
In the last couple of years the Gross Margin of SAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.62% | ||
| PM (TTM) | 24.85% | ||
| GM | 41.58% |
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
SAR has a better debt/assets ratio than last year.
2.2 Solvency
SAR has an Altman-Z score of 0.69. This is a bad value and indicates that SAR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SAR (0.69) is comparable to the rest of the industry.
The Debt to FCF ratio of SAR is 4.46, which is a neutral value as it means it would take SAR, 4.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.46, SAR is in the better half of the industry, outperforming 73.95% of the companies in the same industry.
A Debt/Equity ratio of 2.00 is on the high side and indicates that SAR has dependencies on debt financing.
SAR has a worse Debt to Equity ratio (2.00) than 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 0.69 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 11.05 indicates that SAR has no problem at all paying its short term obligations.
SAR has a Current ratio of 11.05. This is amongst the best in the industry. SAR outperforms 95.38% of its industry peers.
SAR has a Quick Ratio of 11.05. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
SAR has a better Quick ratio (11.05) than 95.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.05 | ||
| Quick Ratio | 11.05 |
3. Growth
3.1 Past
SAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.13%, 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 decrease in Revenue. The Revenue has decreased by -3.56% 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)104.13%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%89.58%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-6.5%
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 13.68% yearly.
SAR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.85% yearly.
EPS Next Y39.97%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.9%
Revenue Next 2Y-6.85%
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
The Price/Earnings ratio is 8.70, which indicates a very decent valuation of SAR.
Based on the Price/Earnings ratio, SAR is valued a bit cheaper than 74.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.70. SAR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.15, the valuation of SAR can be described as reasonable.
Based on the Price/Forward Earnings ratio, SAR is valued a bit cheaper than 79.41% of the companies in the same industry.
SAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
93.28% of the companies in the same industry are more expensive than SAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.93 | ||
| 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.
A more expensive valuation may be justified as SAR's earnings are expected to grow with 13.68% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y13.68%
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.
Compared to an average industry Dividend Yield of 8.50, SAR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
5.2 History
The dividend of SAR is nicely growing with an annual growth rate of 9.46%!
SAR has been paying a dividend for at least 10 years, so it has 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 136.79% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SAR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP136.79%
EPS Next 2Y13.68%
EPS Next 3YN/A
NYSE:SAR (10/10/2025, 12:26:17 PM)
21.485
-0.57 (-2.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners15.44%
Inst Owner Change0%
Ins Owners10.45%
Ins Owner Change0.28%
Market Cap342.69M
Analysts70.77
Price Target24.95 (16.13%)
Short Float %2.99%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
Yearly Dividend2.83
Dividend Growth(5Y)9.46%
DP136.79%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.95%
Min EPS beat(2)-107.09%
Max EPS beat(2)-2.81%
EPS beat(4)1
Avg EPS beat(4)-35.17%
Min EPS beat(4)-107.09%
Max EPS beat(4)1.95%
EPS beat(8)1
Avg EPS beat(8)-52.46%
EPS beat(12)2
Avg EPS beat(12)-42.59%
EPS beat(16)5
Avg EPS beat(16)-32.94%
Revenue beat(2)1
Avg Revenue beat(2)2.08%
Min Revenue beat(2)-6.72%
Max Revenue beat(2)10.88%
Revenue beat(4)2
Avg Revenue beat(4)2.46%
Min Revenue beat(4)-9%
Max Revenue beat(4)14.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.6%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)2.76%
PT rev (1m)-0.32%
PT rev (3m)-1.98%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)-3.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.15 | ||
| P/S | 2.4 | ||
| P/FCF | 1.93 | ||
| P/OCF | 1.93 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.47
EY11.5%
EPS(NY)2.64
Fwd EY12.27%
FCF(TTM)11.14
FCFY51.85%
OCF(TTM)11.14
OCFY51.85%
SpS8.93
BVpS24.85
TBVpS24.85
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 8.93% | ||
| ROCE | 4.17% | ||
| ROIC | 3.3% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 4.08% | ||
| OM | 34.62% | ||
| PM (TTM) | 24.85% | ||
| GM | 41.58% | ||
| FCFM | 124.7% |
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%
ROICexcg growth 3Y30.31%
ROICexcg 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.05 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 501.82% | ||
| Current Ratio | 11.05 | ||
| Quick Ratio | 11.05 | ||
| Altman-Z | 0.69 |
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)104.13%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%89.58%
EPS Next Y39.97%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%-6.5%
Revenue Next Year-14.9%
Revenue Next 2Y-6.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.67%
EBIT growth 3Y38.97%
EBIT growth 5Y27.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y210.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y210.32%
OCF growth 3YN/A
OCF growth 5YN/A