Sachem Capital (SACH) AI Stock Analysis

• Market Cap: $51.60M
• Dividend Yield: 18.52%
• Average Volume (3M): 237.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -61.14%
• EPS Growth: -1562.60%
• Country: US
• Employees: 28
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.02
• Shares Outstanding: 47,342,290
• 10 Day Avg. Volume: 158,220
• 30 Day Avg. Volume: 237,872
• PEG Ratio: <0.01
• Price to Book (P/B): 0.35
• Price to Sales (P/S): -36.10
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: 5.81
• Enterprise Value/Revenue: 22.77
• Enterprise Value/Gross Profit: 76.53
• Enterprise Value/Ebitda: -13.91
• 1Y Price Target: $2.00
• Price Target Upside: 81.82% Upside
• Rating Consensus: Moderate Buy
• 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 Model Diversification

The diversification through partnerships with Urbane New Haven and Shem Creek Capital enhances income stability and growth potential, reducing reliance on traditional loan origination and mitigating risk from non-performing loans.

Improved Investment Income

The significant increase in investment income from Shem Creek LLC demonstrates effective capital allocation and enhances overall revenue, providing a buffer against loan-related income volatility.

Stable Book Value

Maintaining a stable book value indicates effective management of assets and liabilities, providing confidence in the company's financial health despite revenue challenges.

Negative Factors

Net Loss

The net loss, despite stable book value, underscores profitability challenges, necessitating improved operational efficiency and revenue generation to achieve financial sustainability.

Increase in Non-Performing Loans

Rising non-performing loans highlight credit risk and potential losses, straining financial resources and requiring strategic management to mitigate further impact.

Revenue Decline

The significant decline in revenue reflects challenges in loan origination and increased non-performing loans, impacting the company's ability to generate consistent income.

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	13.16M	-1.77M	64.77M	28.96M	19.69M	13.05M
Gross Profit	3.92M	-1.77M	30.04M	28.92M	20.00M	13.04M
EBITDA	-21.54M	-11.35M	0.00	0.00	0.00	0.00
Net Income	-38.40M	-39.57M	15.90M	20.91M	13.32M	8.99M
Balance Sheet
Total Assets	501.76M	491.98M	625.54M	565.66M	417.96M	226.67M
Cash, Cash Equivalents and Short-Term Investments	22.47M	19.58M	12.60M	23.71M	102.57M	56.70M
Total Debt	301.78M	268.19M	345.89M	284.39M	194.46M	138.78M
Total Liabilities	323.86M	310.32M	395.46M	347.95M	237.88M	145.75M
Stockholders Equity	177.91M	181.65M	230.07M	217.71M	180.08M	80.92M
Cash Flow
Free Cash Flow	2.31M	12.81M	21.86M	11.57M	26.98M	9.48M
Operating Cash Flow	2.40M	12.89M	21.86M	13.15M	27.81M	9.63M
Investing Cash Flow	49.72M	79.91M	-72.49M	-159.54M	-166.27M	-82.82M
Financing Cash Flow	-40.22M	-87.33M	39.52M	128.16M	160.72M	73.76M

Sachem Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 1.1 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.14, and above the 200-day MA of 1.05, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 38.90 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	71 Outperform	$59.94M	10.89	12.68%	8.79%	-7.13%	-3.24%
SEVN	66 Neutral	$158.23M	9.94	5.71%	12.41%	-16.74%	-32.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LFT	56 Neutral	$92.64M	9.42	6.01%	20.47%	-24.12%	-47.91%
CHMI	49 Neutral	$85.79M	―	-2.56%	22.63%	-2.02%	-20.61%
GPMT	49 Neutral	$130.33M	-1.31	-14.12%	7.17%	-29.55%	42.09%
SACH	47 Neutral	$51.60M	―	-18.82%	18.52%	-61.14%	-1562.60%

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.