📊 SAFE Key Takeaways
Is Safehold Inc. (SAFE) a Good Investment?
Safehold exhibits strong profitability margins (29.7% net margin) but faces critical financial distress risk with an interest coverage ratio of 0.7x, indicating operating income cannot cover interest expenses. Combined with poor capital efficiency (ROE 4.8%, ROA 1.6%), minimal free cash flow ($14.5M), and extreme leverage ($4.6B debt against $21.7M cash), the company's financial structure is unsustainable without significant operational improvement or debt restructuring.
Why Buy Safehold Inc. Stock? SAFE Key Strengths
- Strong operating margin of 26.2% and net margin of 29.7% demonstrating pricing power and operational efficiency
- Revenue growth of 5.4% YoY with diluted EPS growth of 7.4% YoY suggesting share buyback activity and operational momentum
- Operating income of $100.9M provides baseline cash generation capability
SAFE Stock Risks: Safehold Inc. Investment Risks
- Interest coverage ratio of 0.7x critically below sustainable levels—operating income cannot cover interest expenses, indicating financial distress
- Extremely low capital returns with ROE of 4.8% and ROA of 1.6% revealing poor asset deployment efficiency
- Excessive leverage (Debt/Equity 1.90x) with only $21.7M cash against $4.6B debt creates acute refinancing and solvency risk
Key Metrics to Watch
- Interest coverage ratio trajectory—must improve to above 1.5x minimum for financial stability
- Free cash flow sustainability relative to debt service obligations and capital requirements
- Total debt levels and scheduled maturities—assess refinancing risk and deleveraging progress
Safehold Inc. (SAFE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
SAFE Profit Margin, ROE & Profitability Analysis
SAFE vs Real Estate Sector: How Safehold Inc. Compares
How Safehold Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Safehold Inc. Stock Overvalued? SAFE Valuation Analysis 2026
Based on fundamental analysis, Safehold Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Safehold Inc. Balance Sheet: SAFE Debt, Cash & Liquidity
SAFE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Safehold Inc.'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.82 indicates the company is currently unprofitable.
SAFE Revenue Growth, EPS Growth & YoY Performance
SAFE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $90.7M | $19.3M | $0.27 |
| Q2 2025 | $89.9M | $27.9M | $0.39 |
| Q1 2025 | $93.2M | $29.4M | $0.41 |
| Q3 2024 | $85.6M | $19.3M | $0.27 |
| Q2 2024 | $85.7M | $22.1M | $0.35 |
| Q1 2024 | $78.3M | $4.7M | $0.07 |
| Q3 2023 | $71.7M | $66.1M | $1.04 |
| Q2 2023 | $64.9M | $22.1M | $0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Safehold Inc. Dividends, Buybacks & Capital Allocation
SAFE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Safehold Inc. (CIK: 0001095651)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SAFE
What is the AI rating for SAFE?
Safehold Inc. (SAFE) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SAFE's key strengths?
Claude: Strong operating margin of 26.2% and net margin of 29.7% demonstrating pricing power and operational efficiency. Revenue growth of 5.4% YoY with diluted EPS growth of 7.4% YoY suggesting share buyback activity and operational momentum.
What are the risks of investing in SAFE?
Claude: Interest coverage ratio of 0.7x critically below sustainable levels—operating income cannot cover interest expenses, indicating financial distress. Extremely low capital returns with ROE of 4.8% and ROA of 1.6% revealing poor asset deployment efficiency.
What is SAFE's revenue and growth?
Safehold Inc. reported revenue of $385.6M.
Does SAFE pay dividends?
Safehold Inc. pays dividends, with $50.9M distributed to shareholders in the trailing twelve months.
Where can I find SAFE SEC filings?
Official SEC filings for Safehold Inc. (CIK: 0001095651) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SAFE's EPS?
Safehold Inc. has a diluted EPS of $1.59.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SAFE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Safehold Inc. has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SAFE stock overvalued or undervalued?
Valuation metrics for SAFE: ROE of 4.8% (sector avg: 8%), net margin of 29.7% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy SAFE stock in 2026?
Our dual AI analysis gives Safehold Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SAFE's free cash flow?
Safehold Inc.'s operating cash flow is $47.8M, with capital expenditures of $33.3M. FCF margin is 3.8%.
How does SAFE compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 29.7% (avg: 20%), ROE 4.8% (avg: 8%), current ratio N/A (avg: 1.5).
Is Safehold Inc. carrying too much debt?
SAFE has a debt-to-equity ratio of 1.90x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.