AMEX:SACH

Stock Analysis Report

Executive Summary

Sachem Capital Corp. operates as a real estate finance company.


Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

How has Sachem Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

SACH

-2.7%

US Mortgage

0.5%

US Market


1 Year Return

-6.2%

SACH

5.1%

US Mortgage

20.3%

US Market

Return vs Industry: SACH underperformed the US Mortgage industry which returned 5.1% over the past year.

Return vs Market: SACH underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

SACHIndustryMarket
7 Day-0.5%-2.7%0.5%
30 Day-2.5%-2.2%2.0%
90 Day-0.5%-2.5%9.4%
1 Year3.7%-6.2%7.5%5.1%22.8%20.3%
3 Year12.7%-17.6%17.8%9.5%50.1%40.4%
5 Yearn/a57.3%40.1%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sachem Capital undervalued compared to its fair value and its price relative to the market?

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SACH ($4.22) is trading below our estimate of fair value ($6.32)

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


Price To Earnings Ratio

PE vs Industry: SACH is good value based on its PE Ratio (10.5x) compared to the Mortgage industry average (13.7x).

PE vs Market: SACH is good value based on its PE Ratio (10.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SACH is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SACH is overvalued based on its PB Ratio (1.1x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

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

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SACH's forecast earnings growth (28.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SACH's earnings (28.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SACH's revenue (23.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SACH's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SACH's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Sachem Capital performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SACH has high quality earnings.

Growing Profit Margin: SACH's current net profit margins (65.4%) are lower than last year (77.2%).


Past Earnings Growth Analysis

Earnings Trend: SACH's earnings have grown significantly by 32.3% per year over the past 5 years.

Accelerating Growth: SACH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SACH had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Mortgage industry average (11.3%).


Return on Equity

High ROE: SACH's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sachem Capital'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: SACH has a low level of unsold assets or inventory.

Debt Coverage by Assets: SACH's debt is covered by short term assets (assets are 4.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Sachem Capital's current dividend yield, its reliability and sustainability?

11.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SACH's dividend (11.37%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SACH's dividend (11.37%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: SACH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SACH's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (131.3%), SACH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SACH's dividends in 3 years are not forecast to be well covered by earnings (95.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average board tenure


CEO

John Villano (59yo)

0.3yrs

Tenure

US$335,000

Compensation

Mr. John L. Villano, CPA, is the Co-founder and Chairman, Chief Financial Officer of Sachem Capital Corp. He serves as Chief Executive Officer and Treasurer of Sachem Capital Corp. since November 21, 2019. ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD335.00K) is below average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
John Villano
President0.3yrsUS$335.00k5.64% $5.3m
Arthur Goldberg
Independent Director3yrsUS$30.66k0.068% $63.8k
Leslie Bernhard
Independent Director3yrsUS$28.16k0.024% $22.8k
Brian Prinz
Independent Director3yrsUS$26.91k1.61% $1.5m

3.0yrs

Average Tenure

71yo

Average Age

Experienced Board: SACH's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.4%.


Top Shareholders

Company Information

Sachem Capital Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sachem Capital Corp.
  • Ticker: SACH
  • Exchange: AMEX
  • Founded: 2010
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$93.335m
  • Shares outstanding: 22.12m
  • Website: https://www.sachemcapitalcorp.com

Number of Employees


Location

  • Sachem Capital Corp.
  • 698 Main Street
  • Branford
  • Connecticut
  • 6405
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SACHAMEX (NYSE MKT LLC)YesCommon SharesUSUSDFeb 2017

Biography

Sachem Capital Corp. operates as a real estate finance company. The company engages in originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property located primarily in Connecticut. It offers loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties located in Connecticut, Massachusetts, Florida, New York, Vermont, and Rhode Island. The company was founded in 2010 and is based in Branford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:18
End of Day Share Price2020/02/19 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.