Safehold Inc. (SAFE) stock analysis

In our weekly check, Safehold Inc. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 8 pass, warnings: 9, red flags: 8.

About Safehold Inc.

Safehold Inc. is a Real Estate company (REIT - Diversified) based in the United States, listed on NYSE as SAFE.

What our checks show for SAFE

Red flags

• Net debt is 13.7x a year of EBITDA (debt/equity 1.91). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (1x): interest is paid from cash or new debt.
• The net margin fell by 11 points over 5 years, to 28.1%: the company keeps less of each sale as profit.
• The gross margin fell by 4.3 points, to 94.3%: costs are rising faster than prices.
• Operating cash flow is only 0.32x net profit: part of the reported profit does not arrive as cash.
• The stock has fallen as much as 99% from a peak. Would you have held through that?
• Beta 1.77: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 2.8%.

Warning signs

• Analysts expect earnings per share to shrink about 0.2% a year.
• Analysts expect the net margin to shrink by 2.7 points from today's 28.1%.
• Earnings per share fell 9.3% a year over the last 3 years.
• Net profit fell 5% a year over the last 3 years.
• Free cash flow covers the dividend only 1 times.
• A small company (market value $795 million): usually riskier and followed by fewer analysts.
• The price swings a lot: 35.1% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Thinly traded (about 461 thousand shares a day): buying and selling can move the price.

Strengths

• Revenue grew 15.2% a year over the last 3 years.
• The company keeps 28.1% of its revenue as net profit.
• The price is 6.9 times earnings (P/E), reasonable for its growth.
• Pay in shares is only 7.8% of free cash flow.

Next earnings report: 2026-11-03

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Questions

What grade does Safehold Inc. (SAFE) have?

In our weekly check, Safehold Inc. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 8 pass, warnings: 9, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SAFE stock?

This week's biggest flags for Safehold Inc.: High debt, Weak interest cover, Margins falling. In total 17 of 25 checks show a warning or a red flag.

What does Safehold Inc. do?

Safehold Inc. is a Real Estate company (REIT - Diversified) based in the United States, listed on NYSE as SAFE.

When does Safehold Inc. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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