Saul Centers (BFS) AI Stock Analysis

• Market Cap: $768.36M
• Dividend Yield: 7.44%
• Average Volume (3M): 65.92K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.55
• Revenue Growth: 5.00%
• EPS Growth: -14.72%
• Country: US
• Employees: 141
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Retail
• EPS (TTM): N/A
• Shares Outstanding: 24,215,565
• 10 Day Avg. Volume: 61,591
• 30 Day Avg. Volume: 65,925
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.59
• Enterprise Value/Revenue: 10.07
• Enterprise Value/Gross Profit: 14.04
• Enterprise Value/Ebitda: 16.05
• 1Y Price Target: $37.00
• Price Target Upside: 15.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $36.00 ▲(12.50%Upside)

The most significant factor in the score is the company's strong cash flow generation and operational profitability, although high leverage presents financial risks. Technical analysis indicates a lack of strong momentum, and the valuation suggests moderate attractiveness with a solid dividend yield.

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 consistent revenue growth and operational profitability, with strong cash flow generation relative to net income. However, high leverage poses financial risks, and low net profit margins affect 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.85M	257.21M	245.86M	239.22M	225.21M
Gross Profit	196.79M	190.07M	181.34M	177.60M	166.79M
EBITDA	171.72M	166.61M	109.98M	107.07M	146.25M
Net Income	50.65M	52.69M	94.13M	2.96M	-4.71M
Balance Sheet
Total Assets	2.13B	1.99B	1.83B	1.75B	1.65B
Cash, Cash Equivalents and Short-Term Investments	10.30M	8.41M	13.28M	14.59M	26.86M
Total Debt	1.53B	1.39B	1.22B	1.14B	1.15B
Total Liabilities	1.63B	1.49B	1.31B	1.22B	1.22B
Stockholders Equity	335.75M	348.39M	400.48M	405.05M	364.32M
Cash Flow
Free Cash Flow	121.22M	117.73M	140.16M	118.38M	134.55M
Operating Cash Flow	121.22M	117.73M	121.15M	118.38M	78.38M
Investing Cash Flow	-188.73M	-203.68M	-116.89M	-55.87M	-56.17M
Financing Cash Flow	69.40M	81.08M	-5.58M	-74.77M	-9.26M

Saul Centers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFS, the sentiment is Negative. The current price of 32 is below the 20-day moving average (MA) of 33.17, below the 50-day MA of 33.52, and below the 200-day MA of 35.10, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 14.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$821.65M	12.35	21.87%	10.54%	0.03%	1997.67%
WSR	71 Outperform	$1.20B	18.11	7.97%	4.45%	4.04%	107.96%
NTST	71 Outperform	$1.76B	―	-0.43%	4.59%	21.31%	-199.59%
SITC	70 Outperform	$557.49M	1.03	42.15%	4.19%	-42.71%	152.66%
AKR	70 Neutral	$2.46B	110.84	0.95%	4.22%	7.09%	2591.94%
BFS	64 Neutral	$768.36M	21.53	13.86%	7.44%	5.00%	-14.72%
Sector *	63 Neutral	$6.73B	14.24	-1.41%	7.30%	4.75%	-35.88%