OTCPK:SFEF

Stock Analysis Report

Executive Summary

Santa Fe Financial Corporation owns and operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California.

Rewards

PE ratio (16.3x) is below the US market (18.9x)

Earnings grew by 42.3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap ($50M)



Snowflake Analysis

Proven track record and slightly overvalued.

Share Price & News

How has Santa Fe Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SFEF

-3.2%

US Hospitality

-0.09%

US Market


1 Year Return

n/a

SFEF

15.0%

US Hospitality

23.9%

US Market

Return vs Industry: Insufficient data to determine how SFEF performed against the US Hospitality industry.

Return vs Market: Insufficient data to determine how SFEF performed against the US Market.


Shareholder returns

SFEFIndustryMarket
7 Day0%-3.2%-0.09%
30 Day0%0.3%3.1%
90 Dayn/a9.9%10.4%
1 Yearn/a18.0%15.0%26.6%23.9%
3 Year25.6%25.6%38.6%29.3%50.9%41.2%
5 Year152.2%152.2%52.7%36.5%78.1%58.5%

Price Volatility Vs. Market

How volatile is Santa Fe Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Santa Fe Financial undervalued compared to its fair value and its price relative to the market?

16.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFEF ($40.2) is trading above our estimate of fair value ($18.15)

Significantly Below Fair Value: SFEF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SFEF is good value based on its PE Ratio (16.3x) compared to the Hospitality industry average (25.1x).

PE vs Market: SFEF is good value based on its PE Ratio (16.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SFEF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SFEF has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Santa Fe Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Santa Fe Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Santa Fe Financial performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFEF has high quality earnings.

Growing Profit Margin: SFEF's current net profit margins (5.1%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: SFEF has become profitable over the past 5 years, growing earnings by 48.8% per year.

Accelerating Growth: SFEF's earnings growth over the past year (42.3%) is below its 5-year average (48.8% per year).

Earnings vs Industry: SFEF earnings growth over the past year (42.3%) exceeded the Hospitality industry -18.9%.


Return on Equity

High ROE: SFEF's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Santa Fe Financial's financial position?


Financial Position Analysis

Short Term Liabilities: SFEF has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SFEF has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SFEF has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SFEF's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SFEF's debt is not well covered by operating cash flow (6.3%).

Interest Coverage: SFEF's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: SFEF has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Santa Fe Financial's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SFEF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SFEF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SFEF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFEF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFEF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Santa Fe Financial's salary, the management and board of directors tenure and is there insider trading?

23.7yrs

Average board tenure


CEO

John Winfield (72yo)

23.8yrs

Tenure

US$440,000

Compensation

Mr. John V. Winfield serves as the Chairman, President and Chief Executive Officer at Portsmouth Square Inc. since May 1996. Mr. John V. Winfield has been the Chairman, Chief Executive Officer and Presiden ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD440.00K) is about average for companies of similar size in the US market ($USD519.76K).

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


Board Age and Tenure

23.7yrs

Average Tenure

72yo

Average Age

Experienced Board: SFEF's board of directors are seasoned and experienced ( 23.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$23,40001 Oct 19
The InterGroup Corporation
EntityCompany
Shares600
Max PriceUS$39.00
BuyUS$11,25030 Sep 19
The InterGroup Corporation
EntityCompany
Shares300
Max PriceUS$37.50
BuyUS$18,50018 Sep 19
The InterGroup Corporation
EntityCompany
Shares500
Max PriceUS$37.00
BuyUS$14,80014 Sep 19
The InterGroup Corporation
EntityCompany
Shares400
Max PriceUS$37.00
BuyUS$3,70009 Sep 19
The InterGroup Corporation
EntityCompany
Shares100
Max PriceUS$37.00
BuyUS$25,00005 Sep 19
The InterGroup Corporation
EntityCompany
Shares700
Max PriceUS$35.71
BuyUS$108,00001 Jul 19
The InterGroup Corporation
EntityCompany
Shares3,000
Max PriceUS$36.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Winfield (72yo)

    Chairman

    • Tenure: 23.8yrs
    • Compensation: US$440.00k
  • Stacy Xu (33yo)

    Treasurer

    • Tenure: 2.3yrs

Board Members

  • Bill Nance (75yo)

    Independent Director

    • Tenure: 23.7yrs
    • Compensation: US$16.00k
  • John Winfield (72yo)

    Chairman

    • Tenure: 23.8yrs
    • Compensation: US$440.00k
  • Robert Dika (44yo)

    Independent Director

    • Tenure: 0.08yrs

Company Information

Santa Fe Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Santa Fe Financial Corporation
  • Ticker: SFEF
  • Exchange: OTCPK
  • Founded: 1967
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$49.921m
  • Shares outstanding: 1.24m
  • Website: https://www.intgla.com

Number of Employees


Location

  • Santa Fe Financial Corporation
  • 12121 Wilshire Boulevard
  • Suite 610
  • Los Angeles
  • California
  • 90025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFEFOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1993

Biography

Santa Fe Financial Corporation owns and operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel property consists of 544 guest rooms and luxury suites, and related facilities, including a five level underground parking garage. The company also owns and operates a 27-unit and a 2-unit multi-family apartment complex located in Los Angeles, California, as well as owns approximately 2 acres of unimproved land for development located in Maui, Hawaii. Further, it invests in instruments, corporate debt and equity securities, publicly traded investment funds, mortgage backed securities, securities issued by REIT’s, and other companies, which invest primarily in real estate. The company was formerly known as Tri Financial Corporation and changed its name to Santa Fe Financial Corporation in September 1970. The company was founded in 1967 and is based in Los Angeles, California. Santa Fe Financial Corporation is a subsidiary of The InterGroup Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 23:52
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.