Yahoo Finance While shareholders of Safehold (NYSE:SAFE) are in the red over the last year, underlying earnings have actually grown
Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Safehold Inc. (NYSE:SAFE) have suffered share price declines over the last year. The share price has slid 60% in that time. At least the damage isn't so bad if you look at the last three years, since the stock is down 15% in that time. The falls have accelerated recently, with the share price down 25% in the last three months.
The recent uptick of 6.9% could be a positive sign of things to come, so let's take a lot at historical fundamentals.
See our latest analysis for Safehold
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Even though the Safehold share price is down over the year, its EPS actually improved. Of course, the situation might betray previous over-optimism about growth.
It's surprising to see the share price fall so much, despite the improved EPS. So it's easy to justify a look at some other metrics.
Safehold managed to grow revenue over the last year, which is usually a real positive. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We know that Safehold has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on Safehold
A Different Perspective
While the broader market lost about 17% in the twelve months, Safehold shareholders did even worse, losing 59% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 11% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Safehold better, we need to consider many other factors. Even so, be aware that Safehold is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
We will like Safehold better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
