Sachem Capital (SACH) AI Stock Analysis

• Market Cap: $43.53M
• Dividend Yield: 32.21%
• Average Volume (3M): 295.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -55.51%
• EPS Growth: -493.18%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 62
• Industry: REIT - Mortgage
• EPS (TTM): 0.00
• Shares Outstanding: 47,310,140
• 10 Day Avg. Volume: 408,668
• 30 Day Avg. Volume: 295,280
• PEG Ratio: <0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.27
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: -0.48
• 1Y Price Target: $1.25
• Price Target Upside: 35.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: ―

Sachem Capital's low overall score is primarily due to its negative financial performance, with significant losses and declining equity. Despite efforts to stabilize through diversification and expense cuts, the company faces challenges with high non-performing loans and macroeconomic pressures. Its technical indicators suggest a bearish trend, and valuation metrics indicate financial distress despite a high dividend yield. Positive steps in corporate strategy provide some hope but require cautious optimism.

Positive Factors

Business Diversification

Sachem Capital Corp. invested $2.5M in Shem Creek, adding diversification to its business model.

Negative Factors

Dividend Reduction

The third-quarter dividend was reduced to $0.05 from $0.08 as the company focuses on preserving liquidity.

Financial Performance

Sachem Capital Corp. reported a third-quarter GAAP loss of $0.13 per share, significantly impacted by an increase to CECL reserves.

Sachem Capital Business Overview & Revenue Model

Company Description

Sachem Capital Corp. is a real estate finance company that specializes in originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property located primarily in the Northeastern United States and Florida. The company focuses on financing the acquisition, renovation, rehabilitation, development, and improvement of residential and commercial properties.

How the Company Makes Money

Sachem Capital makes money primarily through the interest and fees earned on its loan portfolio. The company's revenue model is based on originating and servicing short-term loans secured by real estate. These loans are typically structured with higher interest rates due to their short-term nature and the risk profile of borrowers. In addition to interest income, Sachem Capital earns origination fees and other related fees. The company's ability to generate revenue is significantly influenced by its access to capital markets, the real estate market conditions in its primary operating regions, and its expertise in underwriting and loan servicing.

Sachem Capital Financial Statement Overview

Summary

Sachem Capital is facing financial headwinds, evidenced by negative profitability and declining stockholders' equity, despite having no debt. The company's revenue growth is overshadowed by its inability to maintain operational profitability. Cash flow management remains a challenge with mixed results in converting income into cash. Continued focus on improving operational efficiency and stabilizing earnings is crucial for long-term sustainability.

Income Statement

Sachem Capital displays a concerning trend in its income statement. The company experienced strong revenue growth from 2023 to 2024, but its profitability metrics are alarming. The EBIT and net income turned negative in 2024, indicating significant losses. This could be attributed to increased expenses or other financial pressures. The gross profit margin remains stable as total revenue equals gross profit, but the negative net profit margin highlights operational challenges.

Balance Sheet

The balance sheet reveals a moderate financial position. The company has managed to eliminate its total debt by 2024, significantly improving its debt-to-equity ratio. However, the equity has decreased, and total assets have fallen, indicating potential asset liquidation or depreciation. The equity ratio suggests a relatively balanced structure, but the reduction in stockholders' equity is a concern.

Cash Flow

Cash flow analysis indicates mixed results. Operating cash flow has decreased, and the free cash flow growth rate is negative between 2023 and 2024. Although there is a positive operating cash flow to net income ratio, the negative free cash flow to net income ratio in 2024 signals inefficiencies in converting earnings into cash. The company has engaged in significant investing and financing activities, impacting cash reserves.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.53M	-1.77M	30.04M	30.77M	19.84M	13.05M
	Gross Profit
8.33M	-1.77M	30.04M	30.73M	19.67M	13.04M
	EBIT
-33.37M	-11.72M	18.29M	20.91M	13.32M	8.99M
	EBITDA
-29.57M	-11.35M	0.00	106.41K	0.00	0.00
	Net Income Common Stockholders
-43.34M	-39.57M	15.90M	20.91M	13.32M	8.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.41M	19.58M	12.60M	48.29M	102.57M	56.70M
	Total Assets
626.53M	491.98M	625.54M	565.66M	417.96M	226.67M
	Total Debt
346.94M	268.19M	345.89M	284.39M	194.49M	138.78M
	Net Debt
328.52M	250.13M	333.29M	260.67M	152.55M	119.37M
	Total Liabilities
389.08M	310.32M	395.46M	347.95M	237.88M	145.75M
	Stockholders Equity
237.44M	181.65M	230.07M	217.71M	180.08M	80.92M
Cash Flow		Free Cash Flow
8.76M	12.81M	21.86M	11.57M	27.26M	9.48M
	Operating Cash Flow
8.86M	12.89M	21.86M	13.15M	28.08M	9.63M
	Investing Cash Flow
81.34M	79.91M	-72.49M	-159.54M	-166.27M	-82.82M
	Financing Cash Flow
-84.20M	-87.33M	39.52M	128.16M	160.72M	73.76M

Sachem Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 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 0.92 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.04, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 56.77 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	67 Neutral	$58.05M	10.58	12.70%	9.11%	-5.84%	-3.44%
Sector *	60 Neutral	$2.75B	10.29	0.33%	8508.22%	5.95%	-17.48%
ACR	57 Neutral	$133.02M	62.16	5.47%	―	-13.68%	-53.53%
LFT	56 Neutral	$131.86M	12.66	6.38%	13.06%	-10.98%	-35.75%
CHMI	50 Neutral	$102.11M	43.78	-2.83%	20.34%	0.33%	-37.48%
GPMT	49 Neutral	$114.72M	―	-20.41%	8.44%	-26.87%	-189.15%
SACH	47 Neutral	$43.53M	―	-20.80%	32.21%	-55.51%	-493.18%

Sachem Capital Corporate Events

Sachem Capital Secures New $50 Million Credit Facility

On March 20, 2025, Sachem Capital Corp. entered into a new $50 million revolving credit facility with Needham Bank, replacing its previous $65 million facility. This new agreement involves SN Holdings, a wholly-owned subsidiary, as the borrower, and includes provisions for asset liens and collateral requirements. The facility is set to expire on March 2, 2026, with a potential one-year extension. The company also reported its financial results for 2024, showing a decline in revenue to $57.5 million from $64.7 million in 2023, primarily due to fewer loan originations and reduced interest income. Operating costs increased significantly, leading to a net loss of $43.9 million for the year, compared to a net income of $12.1 million in 2023. Total assets decreased to $492 million, and shareholders’ equity fell to $181.7 million by year-end 2024.