AMEX:SACH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential and fair value.


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


Market Performance


7 Day Return

-2.9%

SACH

1.1%

US Mortgage

1.0%

US Market


1 Year Return

9.9%

SACH

12.9%

US Mortgage

6.7%

US Market

Return vs Industry: SACH underperformed the US Mortgage industry which returned 12.9% over the past year.

Return vs Market: SACH exceeded the US Market which returned 6.7% over the past year.


Share holder returns

SACHIndustryMarket
7 Day-2.9%1.1%1.0%
30 Day0.2%-0.5%-1.8%
90 Day-15.0%2.3%-1.8%
1 Year26.8%9.9%15.4%12.9%9.1%6.7%
3 Yearn/a40.4%30.9%46.0%36.6%
5 Yearn/a68.9%51.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

11.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: SACH ($4.67) is trading above our estimate of fair value ($3.94)

Significantly Undervalued: SACH is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: SACH is good value based on its PE Ratio (11.2x) compared to the Mortgage industry average (14.5x).

PE vs Market: SACH is good value based on its PE Ratio (11.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: SACH is good value based on its PEG Ratio (0.3x)


Price Based on Value of Assets

PB vs Industry: SACH is overvalued based on its PB Ratio (1.3x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Sachem Capital expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

38.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SACH's forecast earnings growth (38.5% per year) is above the savings rate (2.7%).

Earnings vs Market: SACH's earnings (38.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: SACH's revenue (35.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SACH's revenue (35.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Sachem Capital performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SACH's earnings have grown significantly by 35.1% 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 (-1.7%) over the past year, making it difficult to compare to the Mortgage industry average (31.7%).


Return on Equity

High ROE: SACH's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: SACH has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SACH's Return on Capital Employed to determine if it has improved over the past 3 years.


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 3.775520x 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?

10.28%

Expected Dividend Yield


Dividend Yield vs Market

company14.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years10.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SACH's dividend (14.56%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SACH's dividend (14.56%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, SACH has been paying a dividend for less than 10 years.

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 (127.2%), SACH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.7yrs

Average board tenure


CEO

John Villano (59yo)

0yrs

Tenure

US$335,000

Compensation

Mr. John L. Villano, CPA, is the Co-founder and Chairman, Co-Chief Executive Officer, Chief Financial Officer and Secretary of Sachem Capital Corp. He is also the Co-founder of Sachem Capital Partners (“SC ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether John's total compensation is reasonable compared to companies of similar size in the US market.

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 Age and Tenure

2.7yrs

Average Tenure

67yo

Average Age

Experienced Board: SACH's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$12,38108 Oct 19
Brian Prinz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,737
Max PriceUS$4.93

Ownership Breakdown


Management Team

  • John Villano (59yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$335.00k
  • Jeff Villano (54yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$335.00k

Board Members

  • Arthur Goldberg (80yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$30.66k
  • Leslie Bernhard (75yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$28.16k
  • John Villano (59yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$335.00k
  • Jeff Villano (54yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$335.00k
  • Brian Prinz (67yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$26.91k

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$102.135m
  • Shares outstanding: 21.87m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:20
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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