Saul Centers (BFS) AI Stock Analysis

• Market Cap: $759.96M
• Dividend Yield: 7.58%
• Average Volume (3M): 71.34K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.45
• Revenue Growth: 5.75%
• EPS Growth: -37.69%
• Country: US
• Employees: 141
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.32
• Shares Outstanding: 24,412,313
• 10 Day Avg. Volume: 69,161
• 30 Day Avg. Volume: 71,337
• PEG Ratio: -3.55
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 3.48
• P/FCF Ratio: 7.72
• Enterprise Value/Market Cap: 3.56
• Enterprise Value/Revenue: 9.57
• Enterprise Value/Gross Profit: 12.61
• Enterprise Value/Ebitda: 15.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $284.60M

• Rating: 68 Neutral
• Price Target: $33.00 ▲(6.01% Upside)

The overall stock score of 68 reflects solid financial performance with strong revenue growth and operational efficiency, but challenges with profitability and high leverage. The technical analysis indicates a bearish trend, while the valuation is supported by a reasonable P/E ratio and an attractive dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective management strategies, supporting long-term business stability.

Operational Efficiency

High gross profit margins reflect effective cost control and operational efficiency, enhancing the company's ability to generate profits.

Stable Cash Flow

Positive operating cash flow and stable free cash flow ratios ensure the company can meet its financial obligations and invest in growth.

Negative Factors

High Leverage

Significant leverage increases financial risk, especially in rising interest rate environments, potentially impacting long-term financial health.

Declining Net Profit Margin

A declining net profit margin suggests challenges in maintaining profitability, which could affect future earnings and shareholder value.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, impacting growth potential.

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 generates revenue primarily through leasing its retail and commercial properties to tenants. The company earns rental income from long-term leases, which typically provide a stable cash flow. Additionally, BFS may generate ancillary income through property management fees, development services, and other related activities. The company benefits from its strategic locations and a diverse tenant mix, which helps mitigate risks associated with tenant turnover. Key partnerships with retailers and local businesses also contribute to its earnings by ensuring a steady demand for retail space. Furthermore, the company may engage in property development or redevelopment projects, which can lead to increased asset value and additional revenue streams.

Saul Centers Financial Statement Overview

Summary

Saul Centers demonstrates solid revenue growth and operational efficiency, but faces challenges with declining net profit margins and high leverage. The cash flow position is stable, though recent declines in free cash flow growth warrant attention. Overall, the company maintains a strong position in the REIT - Retail industry, but should focus on improving profitability and managing debt levels.

Income Statement

Saul Centers shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.7%. The gross profit margin is strong at 75.9%, indicating efficient cost management. However, the net profit margin has decreased to 13.8% in the TTM, reflecting potential challenges in maintaining profitability. The EBIT and EBITDA margins are healthy, suggesting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.23, indicating significant leverage, which could pose risks in a rising interest rate environment. The return on equity has decreased to 12% in the TTM, showing a decline in profitability from equity. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

Operating cash flow remains positive, but the free cash flow growth rate has declined by 5.2% in the TTM, which may affect future investment capacity. The operating cash flow to net income ratio is low, suggesting potential issues in converting income to cash. However, the free cash flow to net income ratio remains stable at 1.0, indicating adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	282.62M	268.85M	257.21M	245.86M	239.22M	225.21M
Gross Profit	214.40M	196.79M	190.07M	181.34M	177.60M	166.79M
EBITDA	171.23M	171.72M	166.61M	156.39M	155.64M	146.53M
Net Income	39.10M	50.65M	52.69M	50.19M	48.39M	40.38M
Balance Sheet
Total Assets	2.17B	2.13B	1.99B	1.83B	1.75B	1.65B
Cash, Cash Equivalents and Short-Term Investments	11.79M	10.30M	8.41M	13.28M	14.59M	26.86M
Total Debt	1.02B	1.53B	1.39B	1.22B	1.14B	1.15B
Total Liabilities	1.68B	1.63B	1.49B	1.31B	1.22B	1.22B
Stockholders Equity	316.63M	335.75M	348.39M	400.48M	405.05M	364.32M
Cash Flow
Free Cash Flow	106.39M	121.22M	117.73M	140.16M	118.38M	134.55M
Operating Cash Flow	106.39M	121.22M	117.73M	121.15M	118.38M	78.38M
Investing Cash Flow	-117.83M	-188.73M	-203.68M	-116.89M	-55.87M	-56.17M
Financing Cash Flow	16.04M	69.40M	81.08M	-5.58M	-74.77M	-9.26M

Saul Centers Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFS, the sentiment is Neutral. The current price of 31.13 is above the 20-day moving average (MA) of 30.12, above the 50-day MA of 30.47, and below the 200-day MA of 32.30, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 80.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BFS.

Saul Centers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSR	72 Outperform	$1.37B	15.64	10.34%	4.01%	4.44%	107.23%
CBL	71 Outperform	$1.02B	8.37	37.88%	7.47%	5.74%	294.33%
BFS	68 Neutral	$759.96M	27.04	11.88%	7.58%	5.75%	-37.69%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AKR	65 Neutral	$2.73B	163.14	0.74%	3.90%	8.85%	27.38%
SITC	55 Neutral	$386.65M	13.35	2.46%	6.04%	-69.63%	-95.99%
ALX	53 Neutral	$1.08B	29.71	22.99%	8.48%	-7.52%	-22.75%