SARATOGA INVESTMENT CORP (SAR) Stock Fundamental Analysis
NYSE:SAR - US80349A2087 - Common Stock
24.79 USD
0 (0%)
24.79 USD
0 (0%)
SAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 239 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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 (2.95%) which is in line with its industry peers.
The Return On Equity of SAR (8.93%) is comparable to the rest of the industry.
SAR has a Return On Invested Capital (3.30%) which is comparable to the rest of the industry.
SAR had an Average Return On Invested Capital over the past 3 years of 3.34%. This is below the industry average of 7.59%.
| 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
The Profit Margin of SAR (24.85%) is better than 66.53% 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 34.62%, SAR is in the better half of the industry, outperforming 62.76% of the companies in the same industry.
SAR's Operating Margin has improved in the last couple of years.
SAR has a Gross Margin (41.58%) which is comparable to the rest of the industry.
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.
The number of shares outstanding for SAR has been increased compared to 5 years ago.
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.
With a Altman-Z score value of 0.72, SAR perfoms like the industry average, outperforming 44.77% of the companies in the same 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.
SAR has a Debt to FCF ratio of 4.46. This is in the better half of the industry: SAR outperforms 72.80% of its industry peers.
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 78.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 0.72 |
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.
Looking at the Current ratio, with a value of 11.05, SAR belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
A Quick Ratio of 11.05 indicates that SAR has no problem at all paying its short term obligations.
The Quick ratio of SAR (11.05) is better than 96.23% 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.
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.
Looking at the last year, SAR shows a decrease in Revenue. The Revenue has decreased by -3.56% 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)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.
The Revenue is expected to decrease by -6.85% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.04, which indicates a very decent valuation of SAR.
75.73% of the companies in the same industry are more expensive than SAR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SAR to the average of the S&P500 Index (27.06), we can say SAR is valued rather cheaply.
The Price/Forward Earnings ratio is 9.40, 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 79.08% 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 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 9.4 |
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 92.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| 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.
A more expensive valuation may be justified as SAR's earnings are expected to grow with 13.68% in the coming years.
PEG (NY)0.25
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.
SAR's Dividend Yield is a higher than the industry average which is at 8.05.
Compared to an average S&P500 Dividend Yield of 2.41, 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
136.79% 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.
DP136.79%
EPS Next 2Y13.68%
EPS Next 3YN/A
24.79
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.51%
Inst Owner Change-9.44%
Ins Owners10.73%
Ins Owner Change0.28%
Market Cap395.40M
Analysts71.67
Price Target25.03 (0.97%)
Short Float %2.12%
Short Ratio2.53
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%
PT rev (3m)-2.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.83%
EPS NY rev (1m)2.39%
EPS NY rev (3m)-10.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 9.4 | ||
| P/S | 2.77 | ||
| P/FCF | 2.23 | ||
| P/OCF | 2.23 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.47
EY9.96%
EPS(NY)2.64
Fwd EY10.63%
FCF(TTM)11.14
FCFY44.94%
OCF(TTM)11.14
OCFY44.94%
SpS8.93
BVpS24.85
TBVpS24.85
PEG (NY)0.25
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 | 0.72 |
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