Saratoga Investment Corp 8.50%
Saratoga Investment Corp 8.50% Fundamental Analysis
Saratoga Investment Corp 8.50% (SAZ) shows strong financial fundamentals with a PE ratio of 9.72, profit margin of 37.87%, and ROE of 9.56%. The company generates $0.1B in annual revenue with strong year-over-year growth of 35.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SAZ's fundamental strength across five key dimensions:
Efficiency Score
WeakSAZ struggles to generate sufficient returns from assets.
Valuation Score
ModerateSAZ shows balanced valuation metrics.
Growth Score
ModerateSAZ shows steady but slowing expansion.
Financial Health Score
ModerateSAZ shows balanced financial health with some risks.
Profitability Score
ModerateSAZ maintains healthy but balanced margins.
Key Financial Metrics
Is SAZ Expensive or Cheap?
P/E Ratio
SAZ trades at 9.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SAZ's PEG of 2.28 indicates potential overvaluation.
Price to Book
The market values Saratoga Investment Corp 8.50% at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.26 times EBITDA. This is generally considered low.
How Well Does SAZ Make Money?
Net Profit Margin
For every $100 in sales, Saratoga Investment Corp 8.50% keeps $37.87 as profit after all expenses.
Operating Margin
Core operations generate 40.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.56 in profit for every $100 of shareholder equity.
ROA
Saratoga Investment Corp 8.50% generates $3.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Saratoga Investment Corp 8.50% produces operating cash flow of $23.03M, showing steady but balanced cash generation.
Free Cash Flow
Saratoga Investment Corp 8.50% generates strong free cash flow of $23.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.42 in free cash annually.
FCF Yield
SAZ converts 6.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How SAZ Stacks Against Its Sector Peers
| Metric | SAZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.72 | 18.86 | Better (Cheaper) |
| ROE | 9.56% | 847.00% | Weak |
| Net Margin | 37.87% | 4202.00% | Weak |
| Debt/Equity | 1.85 | 0.91 | Weak (High Leverage) |
| Current Ratio | 9.12 | 667.17 | Strong Liquidity |
| ROA | 3.22% | -21543.00% (disorted) | Weak |
SAZ outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Saratoga Investment Corp 8.50%'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.44%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-66.25%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
973.72%
Industry Style: Value, Dividend, Cyclical
High Growth