BROADSTONE NET LEASE INC (BNL) Stock Fundamental Analysis
NYSE:BNL - New York Stock Exchange, Inc. - US11135E2037 - REIT - Currency: USD
Taking everything into account, BNL scores 5 out of 10 in our fundamental rating. BNL was compared to 130 industry peers in the Diversified REITs industry. BNL has an excellent profitability rating, but there are concerns on its financial health. BNL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BNL had positive earnings in the past year.
BNL had a positive operating cash flow in the past year.
In the past 5 years BNL has always been profitable.
Each year in the past 5 years BNL had a positive operating cash flow.
1.2 Ratios
BNL has a Return On Assets of 2.16%. This is in the better half of the industry: BNL outperforms 70.00% of its industry peers.
BNL has a Return On Equity of 3.83%. This is in the better half of the industry: BNL outperforms 66.92% of its industry peers.
BNL has a Return On Invested Capital of 3.31%. This is in the better half of the industry: BNL outperforms 62.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BNL is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.31%) for BNL is above the 3 year average (3.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 3.83% | ||
| ROIC | 3.31% |
ROA(3y)2.75%
ROA(5y)2.33%
ROE(3y)4.79%
ROE(5y)4.11%
ROIC(3y)3.2%
ROIC(5y)3.14%
1.3 Margins
BNL has a Profit Margin of 25.94%. This is amongst the best in the industry. BNL outperforms 81.54% of its industry peers.
In the last couple of years the Profit Margin of BNL has grown nicely.
Looking at the Operating Margin, with a value of 49.35%, BNL belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
In the last couple of years the Operating Margin of BNL has remained more or less at the same level.
BNL has a better Gross Margin (86.93%) than 88.46% of its industry peers.
BNL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.35% | ||
| PM (TTM) | 25.94% | ||
| GM | 86.93% |
OM growth 3Y-1.4%
OM growth 5Y1.29%
PM growth 3Y11.92%
PM growth 5Y7.05%
GM growth 3Y0.06%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
BNL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BNL has been increased compared to 1 year ago.
Compared to 5 years ago, BNL has more shares outstanding
BNL has a worse debt/assets ratio than last year.
2.2 Solvency
BNL has an Altman-Z score of 0.87. This is a bad value and indicates that BNL is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.87, BNL is doing good in the industry, outperforming 70.77% of the companies in the same industry.
BNL has a Debt/Equity ratio of 0.68. This is a neutral value indicating BNL is somewhat dependend on debt financing.
BNL's Debt to Equity ratio of 0.68 is amongst the best of the industry. BNL outperforms 82.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACC0.49
WACC6.82%
2.3 Liquidity
A Current Ratio of 1.58 indicates that BNL should not have too much problems paying its short term obligations.
BNL's Current ratio of 1.58 is fine compared to the rest of the industry. BNL outperforms 72.31% of its industry peers.
BNL has a Quick Ratio of 1.58. This is a normal value and indicates that BNL is financially healthy and should not expect problems in meeting its short term obligations.
BNL has a Quick ratio of 1.58. This is in the better half of the industry: BNL outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
BNL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.46%.
The Earnings Per Share has been growing by 9.96% on average over the past years. This is quite good.
Looking at the last year, BNL shows a small growth in Revenue. The Revenue has grown by 1.36% in the last year.
Measured over the past years, BNL shows a small growth in Revenue. The Revenue has been growing by 7.64% on average per year.
EPS 1Y (TTM)-36.46%
EPS 3Y9.65%
EPS 5Y9.96%
EPS Q2Q%-74.29%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y4.09%
Revenue growth 5Y7.64%
Sales Q2Q%3.15%
3.2 Future
The Earnings Per Share is expected to decrease by -7.93% on average over the next years.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-22.02%
EPS Next 2Y-6.17%
EPS Next 3Y-9.9%
EPS Next 5Y-7.93%
Revenue Next Year4.22%
Revenue Next 2Y4.73%
Revenue Next 3Y6.02%
Revenue Next 5Y4.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.85, the valuation of BNL can be described as expensive.
Based on the Price/Earnings ratio, BNL is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.50, BNL is valued at the same level.
The Price/Forward Earnings ratio is 20.59, which indicates a rather expensive current valuation of BNL.
Based on the Price/Forward Earnings ratio, BNL is valued cheaply inside the industry as 91.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. BNL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 20.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BNL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The excellent profitability rating of BNL may justify a higher PE ratio.
A cheap valuation may be justified as BNL's earnings are expected to decrease with -9.90% in the coming years.
PEG (NY)N/A
PEG (5Y)2.59
EPS Next 2Y-6.17%
EPS Next 3Y-9.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.24%, BNL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.42, BNL pays a bit more dividend than its industry peers.
BNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
5.2 History
BNL has been paying a dividend for over 5 years, so it has already some track record.
BNL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
193.56% of the earnings are spent on dividend by BNL. This is not a sustainable payout ratio.
DP193.56%
EPS Next 2Y-6.17%
EPS Next 3Y-9.9%
15.77
+0.02 (+0.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.84%
Inst Owner Change-0.01%
Ins Owners0.88%
Ins Owner Change10.35%
Market Cap2.98B
Analysts74.29
Price Target19.09 (21.05%)
Short Float %2.8%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.24% |
Yearly Dividend1.15
Dividend Growth(5Y)N/A
DP193.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-39.2%
Min EPS beat(2)-48.59%
Max EPS beat(2)-29.82%
EPS beat(4)1
Avg EPS beat(4)-20.07%
Min EPS beat(4)-48.59%
Max EPS beat(4)8.53%
EPS beat(8)4
Avg EPS beat(8)11.76%
EPS beat(12)7
Avg EPS beat(12)14.08%
EPS beat(16)11
Avg EPS beat(16)14.81%
Revenue beat(2)1
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)0.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)0.7%
Revenue beat(8)2
Avg Revenue beat(8)-2.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.71%
Revenue beat(16)6
Avg Revenue beat(16)1.57%
PT rev (1m)0%
PT rev (3m)-0.76%
EPS NQ rev (1m)-2.7%
EPS NQ rev (3m)10.21%
EPS NY rev (1m)-4.28%
EPS NY rev (3m)-6.71%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 20.59 | ||
| P/S | 6.85 | ||
| P/FCF | N/A | ||
| P/OCF | 10.77 | ||
| P/B | 1.01 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)0.61
EY3.87%
EPS(NY)0.77
Fwd EY4.86%
FCF(TTM)-0.99
FCFYN/A
OCF(TTM)1.46
OCFY9.28%
SpS2.3
BVpS15.6
TBVpS12.33
PEG (NY)N/A
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 3.83% | ||
| ROCE | 4.19% | ||
| ROIC | 3.31% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 3.8% | ||
| OM | 49.35% | ||
| PM (TTM) | 25.94% | ||
| GM | 86.93% | ||
| FCFM | N/A |
ROA(3y)2.75%
ROA(5y)2.33%
ROE(3y)4.79%
ROE(5y)4.11%
ROIC(3y)3.2%
ROIC(5y)3.14%
ROICexc(3y)3.21%
ROICexc(5y)3.16%
ROICexgc(3y)3.71%
ROICexgc(5y)3.68%
ROCE(3y)4.05%
ROCE(5y)3.97%
ROICexcg growth 3Y-1.95%
ROICexcg growth 5Y4.16%
ROICexc growth 3Y-1.44%
ROICexc growth 5Y3.2%
OM growth 3Y-1.4%
OM growth 5Y1.29%
PM growth 3Y11.92%
PM growth 5Y7.05%
GM growth 3Y0.06%
GM growth 5Y0.13%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.41 | ||
| Cap/Depr | 302.18% | ||
| Cap/Sales | 106.56% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 75.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 0.87 |
F-Score5
WACC6.82%
ROIC/WACC0.49
Cap/Depr(3y)331.73%
Cap/Depr(5y)318.61%
Cap/Sales(3y)119.74%
Cap/Sales(5y)113.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.46%
EPS 3Y9.65%
EPS 5Y9.96%
EPS Q2Q%-74.29%
EPS Next Y-22.02%
EPS Next 2Y-6.17%
EPS Next 3Y-9.9%
EPS Next 5Y-7.93%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y4.09%
Revenue growth 5Y7.64%
Sales Q2Q%3.15%
Revenue Next Year4.22%
Revenue Next 2Y4.73%
Revenue Next 3Y6.02%
Revenue Next 5Y4.44%
EBIT growth 1Y-0.14%
EBIT growth 3Y2.63%
EBIT growth 5Y9.03%
EBIT Next Year98.66%
EBIT Next 3Y31.75%
EBIT Next 5YN/A
FCF growth 1Y58.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.08%
OCF growth 3Y4.1%
OCF growth 5Y13.39%