Safehold Inc.
Safehold Inc. Fundamental Analysis
Safehold Inc. (SAFE) shows moderate financial fundamentals with a PE ratio of 10.00, profit margin of 29.69%, and ROE of 4.81%. The company generates $0.4B in annual revenue with weak year-over-year growth of 1.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAFE's fundamental strength across five key dimensions:
Efficiency Score
WeakSAFE struggles to generate sufficient returns from assets.
Valuation Score
ModerateSAFE shows balanced valuation metrics.
Growth Score
WeakSAFE faces weak or negative growth trends.
Financial Health Score
ModerateSAFE shows balanced financial health with some risks.
Profitability Score
ModerateSAFE maintains healthy but balanced margins.
Key Financial Metrics
Is SAFE Expensive or Cheap?
P/E Ratio
SAFE trades at 10.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SAFE's PEG of 5.23 indicates potential overvaluation.
Price to Book
The market values Safehold Inc. at 0.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -9.95 times EBITDA. This is generally considered low.
How Well Does SAFE Make Money?
Net Profit Margin
For every $100 in sales, Safehold Inc. keeps $29.69 as profit after all expenses.
Operating Margin
Core operations generate 39.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.81 in profit for every $100 of shareholder equity.
ROA
Safehold Inc. generates $1.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Safehold Inc. produces operating cash flow of $47.81M, showing steady but balanced cash generation.
Free Cash Flow
Safehold Inc. generates strong free cash flow of $47.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.67 in free cash annually.
FCF Yield
SAFE converts 4.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.002
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
17.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How SAFE Stacks Against Its Sector Peers
| Metric | SAFE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.00 | 24.42 | Better (Cheaper) |
| ROE | 4.81% | 679.00% | Weak |
| Net Margin | 29.69% | 4578.00% | Weak |
| Debt/Equity | 1.87 | -22.07 (disorted) | Distorted |
| Current Ratio | 17.86 | 14.99 | Strong Liquidity |
| ROA | 1.58% | -1370.00% (disorted) | Weak |
SAFE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Safehold Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-43.21%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-44.61%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
379.69%
Industry Style: Income, Inflation Hedge, REIT
High Growth