Saratoga Investment Corp (SAR) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Saratoga Investment Corp stock (SAR) is currently trading at $22.17. Saratoga Investment Corp PE ratio is 9.17. Saratoga Investment Corp PS ratio (Price-to-Sales) is 2.86. Analyst consensus price target for SAR is $23.40. WallStSmart rates SAR as Underperform.
- SAR PE ratio analysis and historical PE chart
- SAR PS ratio (Price-to-Sales) history and trend
- SAR intrinsic value — DCF, Graham Number, EPV models
- SAR stock price prediction 2025 2026 2027 2028 2029 2030
- SAR fair value vs current price
- SAR insider transactions and insider buying
- Is SAR undervalued or overvalued?
- Saratoga Investment Corp financial analysis — revenue, earnings, cash flow
- SAR Piotroski F-Score and Altman Z-Score
- SAR analyst price target and Smart Rating
Saratoga Investment Corp
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SAR Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Saratoga Investment Corp (SAR)
SAR trades at a significant discount to its Graham intrinsic value of $79.57, offering a 71% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Saratoga Investment Corp (SAR) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, profit margin. Concerns around return on equity and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Saratoga Investment Corp (SAR) Key Strengths (3)
Keeps $68 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Keeps $31 of every $100 in revenue as net profit
Supporting Valuation Data
Saratoga Investment Corp (SAR) Areas to Watch (6)
Revenue declining -11.80%, a shrinking business
Very low institutional interest at 13.65%
Low profitability relative to shareholder equity
Small-cap company with higher risk but more growth potential
Revenue is fairly priced at 2.86x sales
Solid earnings growth at 16.30%
Supporting Valuation Data
Saratoga Investment Corp (SAR) Detailed Analysis Report
Overall Assessment
This company scores 54/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 3 register as strengths (avg 10.0/10) while 6 fall into concern territory (avg 3.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Profit Margin. Valuation metrics including Price/Book (0.86) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 67.90%, Profit Margin at 30.60%.
The Bear Case
The primary concerns are Revenue Growth, Institutional Own., Return on Equity. Some valuation metrics including Price/Sales (2.86) suggest expensive pricing. Growth concerns include Revenue Growth at -11.80%, EPS Growth at 16.30%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.78%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.78% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -11.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Price/Book) and negatives (Revenue Growth, Institutional Own.). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
SAR Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
SAR's Price-to-Sales ratio of 2.86x trades at a deep discount to its historical average of 11.75x (14th percentile). The current valuation is 90% below its historical high of 29.38x set in Jul 2011, and 149% above its historical low of 1.15x in Jun 2010. Over the past 12 months, the PS ratio has compressed from ~4.3x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Saratoga Investment Corp (SAR) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Saratoga Investment Corp faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 126M with 12% decline year-over-year. Profit margins are strong at 30.6%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 30.6% and operating margin of 67.9% demonstrate strong pricing power and operational efficiency.
Generating 8M in free cash flow and 8M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 12% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Dividend sustainability with a current yield of 13.7%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 765M is significantly higher than cash (52M). Monitor refinancing risk.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Saratoga Investment Corp.
Bottom Line
Saratoga Investment Corp faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Saratoga Investment Corp(SAR)
NYSE
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Saratoga Investment Corp (SAR) is a publicly traded business development company that specializes in providing flexible debt and equity capital to middle-market firms across various sectors, including healthcare, technology, and consumer products. With a disciplined investment strategy, Saratoga emphasizes thorough due diligence and robust risk management practices, aiming to enhance shareholder returns while ensuring capital preservation. The company's commitment to active portfolio management and its history of consistent dividend distributions make it an attractive choice for institutional investors looking to diversify their investments within the alternative asset space.