Sachem Capital (SACH) AI Stock Analysis

• Market Cap: $47.01M
• Dividend Yield: 19.8%
• Average Volume (3M): 170.06K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.50
• Revenue Growth: -63.70%
• EPS Growth: -325.57%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): -0.08
• Shares Outstanding: 47,967,170
• 10 Day Avg. Volume: 266,478
• 30 Day Avg. Volume: 170,062
• PEG Ratio: -0.07
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 19.51
• Enterprise Value/Market Cap: 6.66
• Enterprise Value/Revenue: 8.27
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 16.61
• 1Y Price Target: $1.25
• Price Target Upside: 27.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $47.29M

• Rating: 55 Neutral
• Price Target: $0.99 ▲(0.92% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by weakened financial performance (recent loss, negative margins, and pressured returns amid leverage). Offsetting factors include attractive headline valuation (low P/E and high yield) and moderately constructive business updates (improved liquidity and some reduction in nonperforming loans), while technical signals suggest only mild stabilization rather than a strong uptrend.

Positive Factors

High-yield performing loan portfolio

A ~12.4% effective yield on performing loans indicates durable margin potential from its core hard‑money lending niche. Persistently higher yields versus traditional lenders support net interest income generation over months, helping absorb funding costs if underwriting remains conservative.

Improved funding flexibility and longer maturities

Issuing longer‑dated senior secured notes and repaying shorter unsecured paper, alongside revolver extensions, materially reduces near‑term refinancing risk. A longer maturity profile and diversified funding mix enhance structural liquidity and give management time to stabilize credit and earnings.

Positive operating and free cash flow

Sustained positive operating and free cash flow provides a durable source to fund dividends, debt servicing, and selective portfolio remediation. While volatile, consistent cash generation underpins financial flexibility and supports capital allocation even amid earnings pressure.

Negative Factors

Earnings quality deterioration

A shift from multi-year profitability to large losses and negative margins signals a structural hit to core earnings power. This erodes retained capital, pressures book value and distributable income, and lengthens the recovery timeline as revenue and margins must be rebuilt.

Elevated leverage and weakening returns on equity

High and persistent leverage magnifies earnings volatility and reduces shock absorption for a mortgage REIT. With ROE turned negative, the capital structure limits management's ability to invest or absorb credit losses, increasing the risk of further equity dilution or tighter funding conditions.

Concentration and legacy asset risk (Naples project)

A single troubled development representing ~13% of the portfolio creates sustained credit and cash‑flow drag. Permitting, contractor and legal delays lengthen resolution timelines, raise remediation costs, and impair portfolio performance until the asset is fully resolved or monetized.

Sachem Capital Business Overview & Revenue Model

Company Description

Sachem Capital Corp. operates as a real estate finance company. The company is involved in the originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property located primarily in Northeastern United States and Florida. It offers loans to real estate investors and owners to fund their acquisition, renovation, rehabilitation, development, and/or improvement of residential or commercial properties. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal income taxes if it distributes at least 90% of its taxable income each year to its stockholders. Sachem Capital Corp. was founded in 2010 and is based in Branford, Connecticut.

How the Company Makes Money

Sachem Capital makes money primarily through net interest income generated from its loan portfolio. The core revenue stream is interest earned on short-term, real-estate-secured loans (typically hard money/bridge-style financing), where pricing is generally higher than conventional bank loans due to shorter duration, speed of execution, and borrower/project risk profile. In addition to recurring interest income, the company may earn fee-based income tied to loan origination and servicing economics, such as origination fees/points charged at closing and other loan-related fees (e.g., extension, late, or administrative fees), to the extent disclosed in its filings. Because the loans are secured by real property, the company may also generate income or recoveries through enforcement actions if a borrower defaults (including collecting default interest/fees and, where applicable, proceeds from collateral disposition), though the amounts and timing depend on specific loan outcomes. Like many finance REITs, profitability is influenced by its cost of capital and funding mix (e.g., the interest expense on borrowings used to fund loans versus the yield on the loan portfolio), the pace of new originations and payoffs, credit performance (non-accruals and realized losses), and the level of real estate market activity affecting borrower demand and refinancing/exits. Significant partnerships contributing to earnings: null

Sachem Capital Financial Statement Overview

Summary

Income statement weakness (2024 loss and negative margins/TTM disruption) is a major drag, partially offset by still-positive operating/free cash flow and a balance sheet that, while leveraged, retains a meaningful equity cushion.

Income Statement

Earnings quality and trajectory have weakened materially. After strong profitability in 2020–2023 (healthy net profit margins and positive net income), 2024 swung to a large net loss with deeply negative margins, and TTM (Trailing-Twelve-Months) revenue turned negative alongside negative operating and EBITDA margins. While gross profit margin remains solid in the latest period, the sharp revenue collapse and loss-making profile dominate the outlook and raise concerns about the stability of core earnings power.

Balance Sheet

The balance sheet shows meaningful leverage typical of a mortgage REIT, with debt-to-equity consistently elevated (~1.1–1.7x over the period). Equity remains sizable, but returns on equity deteriorated from positive levels in 2020–2023 to clearly negative in 2024 and TTM (Trailing-Twelve-Months), signaling pressure on shareholder value generation. Overall, the capital base provides some cushion, but leverage plus negative returns increases financial risk if operating conditions remain stressed.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow are positive in 2024 and TTM (Trailing-Twelve-Months), and free cash flow broadly tracks reported earnings (free cash flow to net income near ~1x where available). However, free cash flow has been volatile (down sharply in TTM and uneven year-to-year), and cash flow strength has not prevented the recent earnings deterioration, suggesting the business is currently relying on cash discipline amid weaker profitability.

Breakdown	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Mar 2022
Income Statement
Total Revenue	47.06M	57.50M	29.97M	30.62M	20.00M
Gross Profit	46.01M	35.16M	29.97M	30.62M	20.00M
EBITDA	32.22M	-11.35M	0.00	0.00	0.00
Net Income	6.31M	-39.57M	15.90M	20.91M	13.32M
Balance Sheet
Total Assets	460.05M	491.98M	620.89M	565.66M	417.96M
Cash, Cash Equivalents and Short-Term Investments	11.86M	19.58M	12.60M	48.29M	102.57M
Total Debt	277.84M	268.19M	345.89M	284.39M	194.46M
Total Liabilities	285.11M	310.32M	390.82M	347.95M	237.88M
Stockholders Equity	174.94M	181.65M	230.08M	217.71M	180.08M
Cash Flow
Free Cash Flow	2.50M	12.81M	21.86M	11.57M	26.98M
Operating Cash Flow	2.66M	12.89M	21.86M	13.15M	27.81M
Investing Cash Flow	29.35M	79.91M	-72.49M	-159.54M	-166.00M
Financing Cash Flow	-39.15M	-87.33M	39.52M	128.16M	160.72M

Sachem Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SACH, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 0.99, and below the 200-day MA of 1.00, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 23.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SACH.

Sachem Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOAN	69 Neutral	$49.41M	13.06	12.22%	9.28%	-8.80%	-5.99%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SEVN	65 Neutral	$189.59M	8.79	5.46%	13.82%	-18.06%	-18.94%
SACH	55 Neutral	$47.01M	7.73	3.56%	19.80%	-63.70%	-325.57%
CHMI	55 Neutral	$99.56M	3.02	2.95%	21.65%	22.14%	―
LFT	53 Neutral	$74.88M	14.34	4.21%	23.03%	-31.69%	-72.10%
GPMT	45 Neutral	$74.20M	-2.79	-7.12%	7.97%	-28.13%	62.49%

Sachem Capital Corporate Events

Sachem Capital Reports 2025 Results, Highlights Stabilization Efforts

Sachem Capital Corp., a mortgage REIT specializing in short-term, first-lien real estate loans to investors, reported its full-year 2025 results on March 12, 2026, highlighting a strategy centered on conservative underwriting and balance-sheet discipline. The company operates primarily in the U.S. real estate financing market, targeting residential and commercial properties through secured nonbank lending and selective development and asset management activities.

For the year ended December 31, 2025, Sachem Capital moved from a net loss in 2024 to net income attributable to common shareholders of $1.8 million, or $0.04 per share, reflecting reduced credit-related charges and the absence of large loan sale losses seen in the prior year. Net interest income declined to $11.7 million and net interest margin contracted to 3.1% as lower average loan balances, higher funding costs, and more nonaccrual loans weighed on spreads.

During 2025, the company issued $100 million of senior secured notes due 2030, with $90 million drawn by year-end, extending its debt maturity profile and diversifying funding while also trimming short-term borrowings and repaying maturing unsecured notes. Management emphasized that these actions, combined with tighter expense control and portfolio repositioning begun in 2024, were aimed at stabilizing the credit profile and strengthening capital structure.

Total operating expenses fell to $13.1 million from $15.7 million, as lower credit charges and cost discipline offset higher compensation tied to strategic hiring and performance pay. Other income remained relatively steady at $9.9 million, but the composition shifted, with a notable $4.1 million gain on asset sales, including a profitable disposition of an office property in Westport, Connecticut that generated roughly $19.9 million of cash and a $4 million book gain.

As of December 31, 2025, total assets stood at $460 million and total liabilities at $285.1 million, with total indebtedness of $277.8 million primarily in unsecured and senior secured notes and a revolving credit facility. Shareholders’ equity declined modestly to $174.9 million, and book value per common share slipped to $2.46 from $2.64, largely due to $14 million of dividends and preferred stock activity, partly offset by net income and a small increase in common shares outstanding.

Operating as a REIT, Sachem Capital paid $4.5 million in preferred dividends and $9.5 million in common dividends in 2025 and reiterated its intention to meet distribution requirements tied to REIT status. Management framed 2025 as a year of credit stabilization and capital-structure optimization, positioning the company for potential long-term value creation and improved risk-adjusted returns for shareholders despite pressure on margins and book value.

The most recent analyst rating on (SACH) stock is a Hold with a $1.25 price target. To see the full list of analyst forecasts on Sachem Capital stock, see the SACH Stock Forecast page.

Sachem Capital Declares Quarterly Common and Preferred Dividends

On March 4, 2026, Sachem Capital Corp. announced that its board of directors declared a quarterly dividend of $0.05 per common share, payable on March 30, 2026, to shareholders of record as of March 15, 2026. The board also approved a quarterly dividend of $0.484375 per share on its 7.75% Series A Cumulative Redeemable Preferred Stock, likewise payable on March 30, 2026, to holders of record on March 15, 2026.

The preferred dividend represents the full accrued amount for the period from December 30, 2025, through March 29, 2026, underscoring Sachem Capital’s ongoing commitment to returning capital to both common and preferred shareholders. The announcement highlights consistent cash distributions, which may be significant for income-focused investors assessing the company’s reliability and yield profile within the mortgage REIT sector.

The most recent analyst rating on (SACH) stock is a Hold with a $1.25 price target. To see the full list of analyst forecasts on Sachem Capital stock, see the SACH Stock Forecast page.

Sachem Capital Extends Revolving Credit Facility Maturity

On January 21, 2026, Sachem Capital Corp. amended its existing $50 million revolving credit facility with Needham Bank, extending the maturity date from March 2, 2026 to March 2, 2028 and adding a new conditional one-year extension option to March 2, 2029, while leaving all other terms unchanged. The move secures longer-term access to liquidity for the company, potentially enhancing its financial flexibility and stability for stakeholders by locking in its current borrowing arrangements for an extended period.

The most recent analyst rating on (SACH) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sachem Capital stock, see the SACH Stock Forecast page.