SAFEGUARD SCIENTIFICS INC

SFES
About the company

Safeguard Scientifics, Inc. no longer investing. It is a private equity and venture capital firm specializing in expansion financings, growth capital, management buyouts, recapitalizations, industry consolidations, corporate spinouts, growth stage, and early stage financings. It initially invests in a Series A-C round and opportunistically in a seed round.

Country: United StatesPrice: $0.62Market Cap: $10.4M

Investment snapshot

0%positive consensus
Scored 1d ago

Positive

0

BUY / PASS

Neutral / negative

2 / 14

NEUTRAL / FAIL

Median fair value

$1.44

+131.5% vs price

Models with upside

2 / 17

Positive margin of safety

Strongest signal

SFES undervalued: all 2 models price fair value above $0.62 (median $1.44)

Key risk

No clean pass — all 13 investors flag at least one valuation criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILNot rankedFAILFAILFAILFAILFAILFAILFAILFAILFAILNEUTRALFAILFAILNEUTRAL
Score
AnalysisChecking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…
Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/AN/AN/AN/AN/AN/AN/A+16.2%N/AN/A+70.9%N/AN/AN/AN/AN/A
Financial Basis

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Market data at 2026-11-01

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Qualitative assessment

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Qualitative assessment

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Market data at 2026-11-01

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Price history 2025-01-01–2026-11-01

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Qualitative assessment

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Price history 2025-01-01–2026-11-01

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Annual history · FY 2023 · Price history 2025-01-01–2026-11-01

Latest source filing: 2024-03-26

Score computed: 2026-11-14

Where It Passes

  • Valuation models100% pass✓ 2▾

    SFES undervalued: all 2 models price fair value above $0.62 (median $1.44)

    Akre fair value$0.74
    ✓Akre+16.2% margin vs $0.62
    Templeton fair value$2.13
    ✓Templeton+70.9% margin vs $0.62

Where It Falls Short

  • Valuation0% pass✓ 7✗ 21▾

    No clean pass — all 13 investors flag at least one valuation criterion

    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio0.5x
    ✓Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value-653.0%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-653.0%, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / EPS
    ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    Price / Book Value per Share0.5x
    ✓Dreman< 1.2x✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)
    Valuation Reasonableness
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    P/E or FCF Yield
    ✗PabraiP/E < 15 or FCF Yield > 10%
    P/B or P/E vs. Historical AverageP/B=0.5x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Price / FCF per Share
    ✗Ackman<= 25
    Price vs. Trailing Low138% of trailing low ($0.45)
    ✗Templeton<= 120% of trailing low (certified split-adjusted live window)
    Net income / market capitalization-94.79%; #5368/6340 (top 84.7%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+1.9270; #705/6449 (top 10.9%)
    ✓AsnessTop 30% of eligible cross-section
    Price / Diluted EPS
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per Share0.52x
    ✓SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change-63.0%
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date+31.91%; #978/6202 (top 15.8%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Cash Flow0% pass✓ 1✗ 11▾

    No clean pass — all 10 investors flag at least one cash flow criterion

    Free Cash Flow Proxy$-88.2M
    ✗BuffettPositive and growing
    FCF Positive and Growing$-20.8M
    ✗LynchPositive and growing
    Operating Cash Flow$-3.3M
    ✗PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=-14.49%, ROA=-43.04%
    ✓PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    P/E or FCF Yield
    ✗PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive0/9 years FCF positive
    ✗MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap
    ✗Ackman>= 4%
    Price / FCF per Share
    ✗Ackman<= 25
    Positive Operating Cash Flow frequency4/19 years positive
    ✗SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures
    ✗Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
  • Verdicts0% pass✗ 14▾

    Split decision: 14 FAIL · 2 NEUTRAL

    Overall verdict
    ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (1/9)✗TempletonFAIL (2/8)✗SleepFAIL (0/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
  • Profitability6% pass✓ 3✗ 32▾

    15 of 16 flag SFES's profitability — Graham, Buffett, Lynch +12 more

    Positive EPS (10 years)8/27 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)16/27 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)-8.6%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)-46.5% (latest)
    ✗BuffettStable or rising over 10 years
    Free Cash Flow Proxy$-88.2M
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE-49.2%
    ✗Lynch> 15%
    EBIT / Enterprise Value-653.0%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-653.0%, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets-43.04%
    ✗PiotroskiROA > 0
    ROA Change YoY-37.84% -> -43.04% (delta: -5.20%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=-14.49%, ROA=-43.04%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY
    ✗PiotroskiImproved YoY
    Pre-Tax Income / Revenue
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity-49.2%
    ✗Dreman> 12%
    Margin of SafetyP/B=0.5x
    ✓PabraiP/B < 1.5 or P/E < 15
    Return on Equity-12.3% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency16/26 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue
    ✗Ackman>= 15%
    Net Income / Shareholders Equity-49.2%
    ✗Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend
    ✗TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization-94.79%; #5368/6340 (top 84.7%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity-49.19%; #4200/5226 (top 80.4%)
    ✗AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA-0.4708; #4899/5884 (top 83.3%)
    ✗AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years2/10 years positive
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Debt & Leverage8% pass✓ 3✗ 12▾

    11 of 12 flag SFES's debt & leverage — Graham, Buffett, Lynch +8 more

    LT Debt vs Net Current Assets
    ✗GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest Coverage
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity
    ✗Lynch< 0.33
    Cash - Long-term Debt
    ✗LynchPositive preferred
    LT Debt / Total Assets Change0.00% -> 0.00%
    ✓PiotroskiDecreased YoY
    Current Assets / Current Liabilities4.84
    ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity
    ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
    Debt Levels
    ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDA
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity
    ✗Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)
    ✗AsnessTop 30% of eligible cross-section
  • Growth13% pass✓ 3✗ 10▾

    7 of 8 flag SFES's growth — Graham, Lynch, Dreman +4 more

    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency16/26 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth
    ✗Ackman>= 5%
    Positive EPS Growth Frequency3/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
  • Efficiency25% pass✓ 2✗ 9▾

    6 of 8 flag SFES's efficiency — Buffett, Greenblatt, Piotroski +3 more

    Current Ratio4.84
    ✓Graham>= 2.0
    ROIC (3-5 yr avg)-10.1%
    ✗Buffett> 10%
    ROIC - WACC-20.1%
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)
    ✗Greenblatt> 25%
    Current Ratio Change YoY11.79 -> 4.84
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY
    ✗PiotroskiImproved YoY
    Current Assets / Current Liabilities4.84
    ✓Dreman> 1.5
    Return on Invested Capital
    ✗Munger> 15%
    ROIC (high and growing)FY2021: ROIC=unavailable; FY2022: ROIC=unavailable; FY2023: ROIC=unavailable
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)0/1 years above 12% (latest -7.8%)
    ✗SleepROIC > 12% in a majority of years

Business & financials

Financial snapshot: annual FY 2023. Current investor scores may use newer quarterly data.

Company Profile

Industry: Trading
SIC Sector: Holding & Investment Offices
Size: Micro Cap($10.4M)
Revenue: N/A
Net Income: $9.8M+31.1% YoY

Financial Snapshot

Operating Margin--
Return on Equity-49.2%
Debt / Equity--
Current Ratio4.84
EPS (Diluted)$-0.61
Buybacks (1y)$75.0K
Buybacks (2y)$3.0M
Shares Retired−3.0% / −0.6% 2y

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Shareholder Return

Fiscal 2023

Issued 3.0% of shares last year, 0.6% issued over two.

Buybacks
$75.0K
Dividends
$5.8M

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

MetricFY 2023
Sources
  • 10-K · 2024-03-26
FY 2022
Sources
  • 10-K · 2023-03-10
FY 2021
Sources
  • 10-K · 2022-03-11
FY 2020
Sources
  • 10-K · 2021-03-05
FY 2019
Sources
  • 10-K · 2020-02-28
Market Cap$10.4Mcurrent$35.3Mest.$72.1Mest.$97.4Mest.$149.8Mest.
Revenue----------
Operating Income-$5.7M↓19%-$4.8M↑33%-$7.2M↑24%-$9.5M↑5%-$10.0M
Net Income-$9.8M↑31%-$14.3M↓153%$27.0M↑172%-$37.6M↓169%$54.6M
EPS (Diluted)$-0.61↑30%$-0.87↓164%$1.36↑175%$-1.81↓169%$2.64
Gross Margin—————
Operating Margin—————
ROE-49.2%↓19%-41.3%↓177%53.4%↑189%-59.8%↓212%53.6%
Total Debt--------$0
Shareholders' Equity$20.0M↓42%$34.6M↓32%$50.6M↓20%$62.9M↓38%$101.7M
Current Ratio4.84↓59%11.79↓32%17.46↑277%4.63↓57%10.85
Debt / Equity————0.00
Operating Cash Flow-$3.3M↓2%-$3.3M↑60%-$8.2M-$8.1M↑59%-$20.0M
Free Cash Flow----------

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Trading

SFES vs Peers — Financial Grading

RevenueN/A
Net Income$9.8MBottom 25%
ROE-49.2%Bottom 25%
D/E—
Op. Margin—
Curr. Ratio4.84Median
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
REALTY INCOME CORPO$56.1B$58.82$5.7B$1.1B2.7%0.6316.8%—2/71/93/70/3F-Score 64/10
Ventas, Inc.VTR$47.0B$88.92$5.8B$261.5M2.1%1.043.5%—2/71/92/70/3F-Score 62/10
RAYMOND JAMES FINANCIAL INCRJF$32.4B$168.64$15.9B$2.1B17.1%0.28——3/93/93/71/3F-Score 64/11
ROYAL GOLD INCRGLD$21.7B$256.89$1.0B$466.3M6.5%0.1361.9%3.124/92/94/70/3F-Score 44/11
iShares Ethereum Trust ETFETHA$19.4B$44.02—$2.3B——————————
KIMCO REALTY CORPKIM$17.0B$25.55$2.1B$584.7M5.6%0.7436.0%—3/72/94/70/3F-Score 75/10
LandBridge Co LLCLB$5.6B$73.15$199.1M$30.1M8.9%1.6559.5%4.872/93/92/70/3F-Score 63/11
Digital Turbine, Inc.APPS$927.6M$7.61$565.3M$37.7M-19.6%1.886.0%1.161/92/92/71/3F-Score 70/11