Saul Centers (BFS) AI Stock Analysis

• Market Cap: $833.50M
• Dividend Yield: 6.83%
• Average Volume (3M): 64.14K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.56
• Revenue Growth: 5.00%
• EPS Growth: -14.72%
• Country: US
• Employees: 141
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Retail
• EPS (TTM): 0.29
• Shares Outstanding: 24,215,565
• 10 Day Avg. Volume: 81,324
• 30 Day Avg. Volume: 64,139
• PEG Ratio: <0.01
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.96
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 11.11
• Enterprise Value/Ebitda: 3.09
• 1Y Price Target: $37.00
• Price Target Upside: 7.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $37.00 ▲(7.03%Upside)

The overall score for Saul Centers reflects its stable financial performance, supported by strong cash flow and attractive dividend yield. However, high leverage and a premium valuation present potential risks. Technical indicators suggest a neutral market sentiment, balancing out the overall score.

Saul Centers Business Overview & Revenue Model

Company Description

Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 60 properties which includes (a) 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

How the Company Makes Money

Saul Centers makes money primarily through the leasing of retail and mixed-use properties. The company's revenue model is centered around collecting rental income from tenants occupying its properties. Key revenue streams include base rent, which is the fixed monthly fee tenants pay, and percentage rent, which is a variable component based on a tenant's sales performance. Additionally, Saul Centers may earn income from property management services and redevelopment projects. The company's earnings are influenced by factors such as occupancy rates, lease agreements, and market demand for retail and commercial space. Saul Centers' strategic location in high-demand metropolitan areas and its long-term relationships with diverse tenants contribute significantly to its revenue generation.

Saul Centers Financial Statement Overview

Summary

Saul Centers shows stable revenue growth and strong operational profitability with high gross profit and EBIT margins. However, the company faces financial risk due to a high debt-to-equity ratio and low net profit margins, which could affect its long-term stability.

Income Statement

Saul Centers demonstrates a stable revenue growth with a rate of approximately 6.2% from 2023 to 2024. The gross profit margin remains strong at 71.7% for TTM, indicating effective cost management. However, the net profit margin is relatively low at 17.1%, suggesting higher operating costs or financial expenses. EBIT and EBITDA margins are healthy at 51.9% and 62.8% respectively, showcasing profitability in operations.

Balance Sheet

The company maintains a high debt-to-equity ratio of 4.7, reflecting significant leverage, which could pose financial risk. Return on Equity is modest at 14.3%, indicating moderate profitability relative to shareholder equity. The equity ratio is 15.4%, suggesting a low proportion of equity financing compared to total assets, which may impact financial stability.

Cash Flow

Saul Centers has a stable operating cash flow, but the free cash flow growth rate is negative due to consistent capital expenditures. The operating cash flow to net income ratio is favorable at 2.5, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also strong at 2.5, showing that the company effectively converts its profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	274.18M	268.85M	257.21M	245.86M	239.22M	225.21M
Gross Profit	196.68M	196.79M	190.07M	181.34M	177.60M	166.79M
EBITDA	171.98M	171.72M	166.61M	109.98M	107.07M	146.25M
Net Income	46.82M	50.65M	52.69M	94.13M	2.96M	-4.71M
Balance Sheet
Total Assets	2.13B	2.13B	1.99B	1.83B	1.75B	1.65B
Cash, Cash Equivalents and Short-Term Investments	6.49M	10.30M	8.41M	13.28M	14.59M	26.86M
Total Debt	1.54B	1.53B	1.39B	1.22B	1.14B	1.15B
Total Liabilities	1.64B	1.63B	1.49B	1.31B	1.22B	1.22B
Stockholders Equity	328.37M	335.75M	348.39M	400.48M	405.05M	364.32M
Cash Flow
Free Cash Flow	117.77M	121.22M	117.73M	140.16M	118.38M	134.55M
Operating Cash Flow	117.77M	121.22M	117.73M	121.15M	118.38M	78.38M
Investing Cash Flow	-167.65M	-188.73M	-203.68M	-116.89M	-55.87M	-56.17M
Financing Cash Flow	49.29M	69.40M	81.08M	-5.58M	-74.77M	-9.26M

Saul Centers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFS, the sentiment is Positive. The current price of 34.57 is below the 20-day moving average (MA) of 34.65, above the 50-day MA of 33.97, and below the 200-day MA of 36.15, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 51.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFS.

Saul Centers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBL	72 Outperform	$795.05M	11.95	21.87%	6.22%	0.03%	1997.67%
SITC	72 Outperform	$603.12M	1.11	42.15%	3.87%	-42.71%	152.66%
WSR	69 Neutral	$1.28B	20.87	7.33%	4.28%	4.39%	24.45%
NTST	69 Neutral	$1.38B	―	-0.88%	4.99%	21.91%	-257.05%
BFS	66 Neutral	$833.50M	23.35	13.86%	6.83%	5.00%	-14.72%
AKR	65 Neutral	$2.40B	109.12	0.92%	4.43%	2.62%	84.20%
Sector *	63 Neutral	$6.92B	18.42	-1.93%	6.88%	4.65%	-25.39%