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Saul Centers (Saul Centers) Financial Strength : 3 (As of Dec. 2023)


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What is Saul Centers Financial Strength?

Saul Centers has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Saul Centers Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Saul Centers's Interest Coverage for the quarter that ended in Dec. 2023 was 2.48. Saul Centers's debt to revenue ratio for the quarter that ended in Dec. 2023 was 5.20. As of today, Saul Centers's Altman Z-Score is 0.29.


Competitive Comparison of Saul Centers's Financial Strength

For the REIT - Retail subindustry, Saul Centers's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Saul Centers's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Saul Centers's Financial Strength distribution charts can be found below:

* The bar in red indicates where Saul Centers's Financial Strength falls into.



Saul Centers Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Saul Centers's Interest Expense for the months ended in Dec. 2023 was $-12.11 Mil. Its Operating Income for the months ended in Dec. 2023 was $30.10 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,112.29 Mil.

Saul Centers's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*30.098/-12.114
=2.48

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Saul Centers Inc interest coverage is 2.5, which is low.

2. Debt to revenue ratio. The lower, the better.

Saul Centers's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(274.715 + 1112.286) / 266.732
=5.20

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Saul Centers has a Z-score of 0.29, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.29 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Saul Centers  (NYSE:BFSpC.CL.PFD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Saul Centers has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Saul Centers Financial Strength Related Terms

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Saul Centers (Saul Centers) Business Description

Traded in Other Exchanges
Address
7501 Wisconsin Avenue, Suite 1500E, Bethesda, MD, USA, 20814-6522
Saul Centers Inc is a self-managed real estate investment trust which invests in, operates, and develops retail and commercial properties. The company's portfolio includes community and neighbourhood shopping centres, office properties, and mixed-use properties. Properties are primarily located in the Washington, D.C. and Maryland metropolitan areas. Saul Centers operates through two business segments: shopping centers, which contribute the maximum portion of total revenue; and mixed-use properties. Major tenants include grocery stores, discount department stores, and drug stores.
Executives
Lori Godby officer: Senior Vice Pres.-Residential 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Judith K. Garland officer: SVP, Office and Retail 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Carlos Lawrence Heard officer: Senior Vice President & CFO 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
David Todd Pearson officer: Executive V.P.-Real Estate 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20895
Mizuho Securities Usa Llc other: See Remarks 1271 AVENUE OF THE AMERICAS, FLOORS - 2,3,4,18,19, NEW YORK NY 10020
Willoughby B. Laycock director, officer: VP-Residential Development 7501 WISCONSIN AVE., SUITE 1400, BETHESDA MD 20814
Powell Earl A Iii director 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Amitha Prabhu officer: VP & Dir. of Internal Audit 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Benjamin Underwood officer: Vice President-Residential 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Donald A Hachey officer: Senior Vice Pres.-Construction 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Saul Andrew M. Ii director 7501 WISCONSIN AVENUE, 15TH FLOOR, BETHESDA MD 20814
James Page Lansdale officer: Exec. VP - Real Estate 7501 WISCONSIN AVENUE, SUITE 1500, BETHESDA MD 20814
Steven N. Corey officer: Senior VP - Office Leasing 7501 WISCONSIN AVENUE, 15TH FLOOR, BETHESDA MD 20814
Debra Noreen Stencel officer: Senior VP & General Counsel 7501 WISCONSIN AVENUE, 14TH FLOOR, BETHESDA MD 20814
Christine Nicolaides Kearns officer: Executive Vice President 7501 WISCONSIN AVENUE, 15TH FLOOR, BETHESDA MD 20814

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