NYSE:BFS

Stock Analysis Report

Executive Summary

Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland.

Rewards

Trading at 46.9% below its fair value

Earnings are forecast to grow 7.17% per year

Earnings have grown 5.4% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

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: BFS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.0%

BFS

0.3%

US REITs

2.4%

US Market


1 Year Return

-37.3%

BFS

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: BFS underperformed the US REITs industry which returned -26.9% over the past year.

Return vs Market: BFS underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

BFSIndustryMarket
7 Day13.0%0.3%2.4%
30 Day-10.1%-22.2%-11.0%
90 Day-34.8%-24.2%-19.4%
1 Year-34.8%-37.3%-16.9%-20.3%-8.1%-10.0%
3 Year-41.0%-46.9%-2.8%-15.0%17.3%9.6%
5 Year-25.4%-37.1%15.9%-7.9%36.1%21.1%

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

Valuation

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

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFS ($27.74) is trading below our estimate of fair value ($52.2)

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


Price To Earnings Ratio

PE vs Industry: BFS is good value based on its PE Ratio (17.6x) compared to the REITs industry average (22.5x).

PE vs Market: BFS is poor value based on its PE Ratio (17.6x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: BFS is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BFS is overvalued based on its PB Ratio (3.4x) compared to the US REITs industry average (1.1x).


Next Steps

Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFS's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).

Earnings vs Market: BFS's earnings (7.2% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: BFS's revenue (5.2% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: BFS's revenue (5.2% 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 BFS'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?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BFS has high quality earnings.

Growing Profit Margin: BFS's current net profit margins (15.7%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: BFS's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: BFS's earnings growth over the past year (0.8%) is below its 5-year average (5.4% per year).

Earnings vs Industry: BFS earnings growth over the past year (0.8%) underperformed the REITs industry 4.3%.


Return on Equity

High ROE: BFS's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Saul Centers's financial position?


Financial Position Analysis

Short Term Liabilities: BFS's short term assets ($71.1M) exceed its short term liabilities ($49.8M).

Long Term Liabilities: BFS's short term assets ($71.1M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: BFS's debt to equity ratio (246.1%) is considered high.

Reducing Debt: BFS's debt to equity ratio has reduced from 252.7% to 246.1% over the past 5 years.

Debt Coverage: BFS's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: BFS's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

6.25%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BFS's dividend (7.64%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: BFS's dividend (7.64%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.1%), BFS's dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

10.6yrs

Average management tenure


CEO

Bernard Saul (86yo)

26.83s

Tenure

US$268,615

Compensation

Mr. Bernard Francis Saul, II has been 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, Chief Ope ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD268.62K) is below average for companies of similar size in the US market ($USD3.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bernard Saul
President26.83yrsUS$268.62k1.39% $14.7m
Scott Schneider
Executive VP27.25yrsUS$847.92k0.078% $817.3k
Christine Kearns
Executive VP and Chief Legal & Administrative Officer6yrsUS$667.93kno data
Christopher Netter
Executive Vice President of Leasing22.25yrsUS$827.65k0.011% $111.6k
Willoughby Laycock
Senior VP of Residential & Director1.08yrsUS$53.94k0.0091% $95.4k
Joel Friedman
Senior VP & Chief Accounting Officer10.58yrsno data0.043% $452.3k
Ted Koutris
Senior VP & Chief Information Officer1.25yrsno datano data
Dee Russo
Shareholder Relations Representative8.25yrsno datano data
Ken Kovach
Senior Vice President of Human Resourcesno datano datano data
Charles Sherren
Senior Vice President of Management20.25yrsno data0.050% $531.6k

10.6yrs

Average Tenure

61yo

Average Age

Experienced Management: BFS's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernard Saul
President26.83yrsUS$268.62k1.39% $14.7m
Willoughby Laycock
Senior VP of Residential & Director1.08yrsUS$53.94k0.0091% $95.4k
Philip Caraci
Independent Vice Chairman of the Board17.08yrsUS$149.84k0.54% $5.7m
Mark Sullivan
Independent Director12yrsUS$63.74k0.062% $652.6k
John Whitmore
Director26.83yrsUS$60.14k0.0017% $18.1k
John Chapoton
Independent Director17.5yrsUS$63.74k0.030% $311.7k
George Clancy
Independent Director8.08yrsUS$97.54k0.020% $209.7k
H. Platts
Independent Director8.08yrsUS$79.44k0.0091% $95.4k
James Lansdale
Director5.83yrsUS$1.45m0.026% $272.4k
Andrew Saul
Director5.83yrsUS$60.14k0.0043% $45.4k

10.0yrs

Average Tenure

76yo

Average Age

Experienced Board: BFS's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BFS 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 2.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Saul Centers, Inc.
  • Ticker: BFS
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.054b
  • Market Cap: US$786.795m
  • Shares outstanding: 31.10m
  • 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 is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio comprised of 60 properties which includes (a) 56 community and neighborhood Shopping Centers and Mixed-Use properties with approximately 9.3 million square feet of leasable area and (b) four land and development properties. Approximately 85% of the Company's property operating income is generated from properties in the metropolitan Washington, DC/Baltimore area. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:11
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.