DB:SA4

Stock Analysis Report

Executive Summary

Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 60 properties which includes (a) 49 community and neighborhood shopping centers and six mixed-use properties with approximately 9.2 million square feet of leasable area and (b) five land and development properties.

Rewards

Trading at 28.2% below its fair value

Earnings are forecast to grow 0.47% per year

Earnings have grown 5.1% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.


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Share Price & News

How has Saul Centers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SA4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

SA4

0.7%

DE REITs

0.2%

DE Market


1 Year Return

-0.02%

SA4

27.8%

DE REITs

13.6%

DE Market

Return vs Industry: SA4 underperformed the German REITs industry which returned 27.8% over the past year.

Return vs Market: SA4 underperformed the German Market which returned 13.6% over the past year.


Shareholder returns

SA4IndustryMarket
7 Day-0.9%0.7%0.2%
30 Day-1.7%-0.1%-0.08%
90 Day-4.9%9.0%6.0%
1 Year4.1%-0.02%32.4%27.8%17.1%13.6%
3 Year-18.2%-26.9%35.7%16.5%19.6%9.0%
5 Year24.2%4.0%56.7%23.0%38.9%20.0%

Price Volatility Vs. Market

How volatile is Saul Centers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Saul Centers undervalued compared to its fair value and its price relative to the market?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SA4 (€46) is trading below our estimate of fair value (€64.05)

Significantly Below Fair Value: SA4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SA4 is poor value based on its PE Ratio (30.6x) compared to the REITs industry average (8.4x).

PE vs Market: SA4 is poor value based on its PE Ratio (30.6x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: SA4 is poor value based on its PEG Ratio (64.6x)


Price to Book Ratio

PB vs Industry: SA4 is overvalued based on its PB Ratio (6.5x) compared to the DE REITs industry average (1.5x).


Next Steps

Future Growth

How is Saul Centers forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SA4's forecast earnings growth (0.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: SA4's earnings (0.5% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: SA4's earnings are forecast to grow, but not significantly.

Revenue vs Market: SA4's revenue (4.1% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: SA4's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SA4's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Saul Centers performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SA4 has high quality earnings.

Growing Profit Margin: SA4's current net profit margins (16.7%) are higher than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: SA4's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: SA4's earnings growth over the past year (11.4%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: SA4 earnings growth over the past year (11.4%) underperformed the REITs industry 97%.


Return on Equity

High ROE: SA4's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Saul Centers's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SA4 has a high level of physical assets or inventory.

Debt Coverage by Assets: SA4's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: SA4's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SA4 has a sufficient allowance for bad loans.

Low Risk Liabilities: SA4 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SA4 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SA4 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SA4 has an appropriate level of bad loans.


Next Steps

Dividend

What is Saul Centers's current dividend yield, its reliability and sustainability?

4.05%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Saul Centers before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.9%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: SA4's dividend (4.05%) is higher than the bottom 25% of dividend payers in the German market (1.34%).

High Dividend: SA4's dividend (4.05%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: SA4's dividend payments have been volatile in the past 10 years.

Growing Dividend: SA4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60%), SA4's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SA4's dividends in 3 years are forecast to be thoroughly covered by earnings (2.1% payout ratio).


Next Steps

Management

What is the CEO of Saul Centers's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Bernard Saul (86yo)

26.5yrs

Tenure

US$259,880

Compensation

Mr. Bernard Francis Saul, II, has been the Chairman and Chief Executive Officer of Saul Centers Inc., since June 1993 and has been its President, since October 1, 2019. Mr. Saul has been the President, Chi ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD259.88K) is below average for companies of similar size in the German market ($USD1.50M).

Compensation vs Earnings: Bernard's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.1yrs

Average Tenure

61yo

Average Age

Experienced Management: SA4's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

76yo

Average Age

Experienced Board: SA4's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: SA4 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$171,86226 Nov 19
Bernard Saul
EntityIndividual
Role
Chief Executive Officer
President
Shares3,598
Max PriceUS$48.14
BuyUS$943,39726 Nov 19
B.F. Saul Company, Inc.
EntityCompany
Shares19,534
Max PriceUS$48.93
BuyUS$5,735,91426 Nov 19
B.F. Saul Real Estate Investment Trust
EntityCompany
Shares120,081
Max PriceUS$48.14
BuyUS$675,70926 Nov 19
Westminster Investing Corporation
EntityCompany
Shares13,906
Max PriceUS$48.97
BuyUS$36,17803 Jun 19
Bernard Saul
EntityIndividual
Role
Chief Executive Officer
President
Shares750
Max PriceUS$48.24

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Bernard Saul (86yo)

    President

    • Tenure: 26.5yrs
    • Compensation: US$259.88k
  • Scott Schneider (61yo)

    Executive VP

    • Tenure: 26.9yrs
    • Compensation: US$734.42k
  • Christopher Netter (64yo)

    Executive Vice President of Retail Leasing

    • Tenure: 21.9yrs
    • Compensation: US$735.71k
  • John Collich (59yo)

    Senior Vice President of Acquisitions & Development

    • Tenure: 0yrs
    • Compensation: US$692.16k
  • Joel Friedman (61yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 10.3yrs
  • James Lansdale (62yo)

    Director & Consultant

    • Tenure: 5.5yrs
    • Compensation: US$1.09m
  • Tina Kearns (59yo)

    Executive VP and Chief Legal & Administrative Officer

    • Tenure: 5.7yrs
  • Ted Koutris

    Senior VP & Chief Information Officer

    • Tenure: 0.9yrs
  • Ken Kovach

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Dee Russo

    Shareholder Relations Representative

    • Tenure: 7.9yrs

Board Members

  • Bernard Saul (86yo)

    President

    • Tenure: 26.5yrs
    • Compensation: US$259.88k
  • Philip Caraci (80yo)

    Vice Chairman of the Board

    • Tenure: 16.8yrs
    • Compensation: US$158.54k
  • Mark Sullivan (77yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$51.29k
  • John Whitmore (86yo)

    Director

    • Tenure: 26.5yrs
    • Compensation: US$51.29k
  • John Chapoton (82yo)

    Independent Director

    • Tenure: 17.2yrs
    • Compensation: US$51.29k
  • George Clancy (75yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$67.09k
  • H. Platts (71yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$68.19k
  • James Lansdale (62yo)

    Director & Consultant

    • Tenure: 5.5yrs
    • Compensation: US$1.09m
  • Andrew Saul (53yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$51.29k
  • Willoughby Laycock (31yo)

    Senior VP of Residential & Director

    • Tenure: 0.8yrs

Company Information

Saul Centers, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saul Centers, Inc.
  • Ticker: SA4
  • Exchange: DB
  • Founded: 1993
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.624b
  • Market Cap: US$1.091b
  • Listing Market Cap: US$1.464b
  • Shares outstanding: 31.02m
  • Website: https://www.saulcenters.com

Number of Employees


Location

  • Saul Centers, Inc.
  • 7501 Wisconsin Avenue
  • Suite 1500E
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BFSNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1993
SA4DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1993
BFS.PRDNYSE (New York Stock Exchange)6.125% PFD CUM DUSUSDJan 2018
BFS.PRENYSE (New York Stock Exchange)6% CUM PFD EUSUSDSep 2019

Biography

Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 60 properties which includes (a) 49  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:53
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.