SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
NYSE:SAR - New York Stock Exchange, Inc. - US80349A2087 - Common Stock - Currency: USD
Taking everything into account, SAR scores 5 out of 10 in our fundamental rating. SAR was compared to 232 industry peers in the Capital Markets industry. SAR has an average financial health and profitability rating. SAR may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past 5 years SAR has always been profitable.
SAR had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
SAR's Return On Assets of 2.36% is in line compared to the rest of the industry. SAR outperforms 50.00% of its industry peers.
With a Return On Equity value of 7.15%, SAR perfoms like the industry average, outperforming 45.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.58%, SAR is in line with its industry, outperforming 45.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SAR is below the industry average of 7.88%.
The 3 year average ROIC (3.34%) for SAR is below the current ROIC(3.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 7.15% | ||
| ROIC | 3.58% |
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 18.87%. This is comparable to the rest of the industry: SAR outperforms 58.62% of its industry peers.
SAR's Profit Margin has declined in the last couple of years.
SAR has a better Operating Margin (35.88%) than 65.09% of its industry peers.
In the last couple of years the Operating Margin of SAR has grown nicely.
With a Gross Margin value of 42.39%, SAR is not doing good in the industry: 61.21% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.88% | ||
| PM (TTM) | 18.87% | ||
| GM | 42.39% |
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
SAR has a better debt/assets ratio than last year.
2.2 Solvency
SAR has an Altman-Z score of 0.72. 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 (0.72) which is comparable to the rest of the industry.
The Debt to FCF ratio of SAR is 4.02, which is a neutral value as it means it would take SAR, 4.02 years of fcf income to pay off all of its debts.
SAR has a Debt to FCF ratio of 4.02. This is in the better half of the industry: SAR outperforms 70.26% of its industry peers.
SAR has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
SAR has a Debt to Equity ratio of 2.02. This is in the lower half of the industry: SAR underperforms 78.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 0.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SAR has a Current Ratio of 16.85. This indicates that SAR is financially healthy and has no problem in meeting its short term obligations.
SAR has a better Current ratio (16.85) than 97.84% of its industry peers.
A Quick Ratio of 16.85 indicates that SAR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 16.85, SAR belongs to the best of the industry, outperforming 97.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 16.85 | ||
| Quick Ratio | 16.85 |
3. Growth
3.1 Past
SAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 187.32%, which is quite impressive.
Measured over the past years, SAR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.46% on average per year.
The Revenue has been growing slightly by 3.58% in the past 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)187.32%
EPS 3Y-20.24%
EPS 5Y-18.46%
EPS Q2Q%-112.82%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%4.22%
3.2 Future
The Earnings Per Share is expected to grow by 14.57% on average over the next years. This is quite good.
The Revenue is expected to decrease by -6.52% on average over the next years.
EPS Next Y55.64%
EPS Next 2Y14.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.79%
Revenue Next 2Y-6.52%
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 11.91, the valuation of SAR can be described as reasonable.
Based on the Price/Earnings ratio, SAR is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
SAR is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.65, which indicates a rather cheap valuation of SAR.
SAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAR is cheaper than 88.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, SAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 7.65 |
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 93.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.89 | ||
| 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 14.57% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y14.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SAR has a Yearly Dividend Yield of 12.48%, which is a nice return.
Compared to an average industry Dividend Yield of 8.22, SAR pays a better dividend. On top of this SAR pays more dividend than 80.60% of the companies listed in the same industry.
SAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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 145.08% 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.
DP145.08%
EPS Next 2Y14.57%
EPS Next 3YN/A
24.29
+0.15 (+0.62%)
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 Change0%
Market Cap373.09M
Analysts76.67
Price Target25.63 (5.52%)
Short Float %1.5%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.48% |
Yearly Dividend2.83
Dividend Growth(5Y)9.46%
DP145.08%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-69.91%
Min EPS beat(2)-107.09%
Max EPS beat(2)-32.73%
EPS beat(4)1
Avg EPS beat(4)-46.83%
Min EPS beat(4)-107.09%
Max EPS beat(4)1.95%
EPS beat(8)1
Avg EPS beat(8)-64.9%
EPS beat(12)2
Avg EPS beat(12)-52.54%
EPS beat(16)6
Avg EPS beat(16)-15.55%
Revenue beat(2)0
Avg Revenue beat(2)-7.86%
Min Revenue beat(2)-9%
Max Revenue beat(2)-6.72%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-9%
Max Revenue beat(4)14.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)6
Avg Revenue beat(12)2.18%
Revenue beat(16)9
Avg Revenue beat(16)2.88%
PT rev (1m)-1.71%
PT rev (3m)-1.71%
EPS NQ rev (1m)30.46%
EPS NQ rev (3m)30.46%
EPS NY rev (1m)6.18%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)-2.53%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-3.95%
Revenue NY rev (3m)-3.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 7.65 | ||
| P/S | 2.51 | ||
| P/FCF | 1.89 | ||
| P/OCF | 1.89 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.04
EY8.4%
EPS(NY)3.18
Fwd EY13.07%
FCF(TTM)12.86
FCFY52.95%
OCF(TTM)12.86
OCFY52.95%
SpS9.69
BVpS25.56
TBVpS25.56
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 7.15% | ||
| ROCE | 4.53% | ||
| ROIC | 3.58% | ||
| ROICexc | 4.33% | ||
| ROICexgc | 4.33% | ||
| OM | 35.88% | ||
| PM (TTM) | 18.87% | ||
| GM | 42.39% | ||
| FCFM | 132.71% |
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-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.14 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 703.33% | ||
| Current Ratio | 16.85 | ||
| Quick Ratio | 16.85 | ||
| Altman-Z | 0.72 |
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)3.58%
Revenue growth 3Y28.14%
Revenue growth 5Y20.56%
Sales Q2Q%4.22%
Revenue Next Year-14.79%
Revenue Next 2Y-6.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.17%
EBIT growth 3Y38.97%
EBIT growth 5Y27.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y225.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y225.66%
OCF growth 3YN/A
OCF growth 5YN/A