Safehold Shareholders Scrambling for the Exit

Now trading at a price of $19.61, Safehold has moved -5.9% so far today.

Safehold returned losses of -64.3% last year, with its stock price reaching a high of $55.69 and a low of $15.0. Over the same period, the stock underperformed the S&P 500 index by -83.8%. AThe company's 50-day average price was $21.68. Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. The mid-cap Real Estate company is based in New York, NY. Safehold has returned a 3.4% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.

The Company's Revenues Are Declining:

2018 2019 2020 2021 2022 2023
Revenue (k) $798,122 $273,705 $324,099 $308,630 $158,051 $279,829
Revenue Growth n/a -65.71% 18.41% -4.77% -48.79% 77.05%
Operating Margins -2% -56% -36% 5% -124% -113%
Net Margins -4% 118% -13% 43% 267% 76%
Net Income (k) -$32,262 $324,042 -$42,441 $132,481 $421,288 $211,503
Net Interest Expense (k) $183,751 $141,699 $126,828 $115,400 $98,051 $140,482
Depreciation & Amort. (k) $58,699 $7,176 $7,327 $7,072 $5,470 $5,699
Earnings Per Share -$0.95 $4.51 -$0.87 $1.51 $4.92 -$2.39
EPS Growth n/a 574.74% -119.29% 273.56% 225.83% -148.58%
Diluted Shares (k) 68,012 64,910 74,053 69,328 86,704 67,979
Free Cash Flow (k) -$84,623 -$85,571 $6,088 -$27,089 $46,489 -$13,329
Capital Expenditures $60,495 $39,946 $15,798 $6,762 $1,178 $1,178
Total Debt (k) $3,609,086 $3,387,080 $2,569,280 $2,572,174 $3,521,359 $3,937,827

Safehold has declining revenues and decreasing reinvestment in the business, declining EPS growth, and High Levels of Debt. Safehold has negative cash flows.

Safehold does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $1.65, the company has a forward P/E ratio of 13.1. In comparison, the average P/E ratio for the Real Estate sector is 25.55. On the other hand, the market is undervaluing Safehold in terms of its equity because its P/B ratio is 0.62. In comparison, the sector average is 2.1.

Safehold Has an Average Rating of Buy:

The 13 analysts following Safehold have set target prices ranging from $22.0 to $43.75 per share, for an average of $30.67 with a buy rating. The company is trading -36.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Safehold has an above average percentage of its shares sold short because 9.1% of the company's shares are sold short. Institutions own 79.8% of the company's shares, and the insider ownership rate stands at 7.16%, suggesting a decent amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 11% stake in the company is worth $157,462,127.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.