BROADSTONE NET LEASE INC (BNL)
US11135E2037 - REIT
We assign a fundamental rating of 6 out of 10 to BNL. BNL was compared to 126 industry peers in the Diversified REITs industry. BNL scores excellent on profitability, but there are some minor concerns on its financial health. BNL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BNL had positive earnings in the past year.
In the past year BNL had a positive cash flow from operations.
BNL had positive earnings in each of the past 5 years.
BNL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BNL has a Return On Assets of 2.94%. This is in the better half of the industry: BNL outperforms 77.24% of its industry peers.
With a decent Return On Equity value of 5.08%, BNL is doing good in the industry, outperforming 69.11% of the companies in the same industry.
BNL has a better Return On Invested Capital (3.43%) than 70.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BNL is in line with the industry average of 2.95%.
The last Return On Invested Capital (3.43%) for BNL is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.08% | ||
| ROIC | 3.43% |
ROA(3y)2.46%
ROA(5y)2.12%
ROE(3y)4.32%
ROE(5y)3.99%
ROIC(3y)3.24%
ROIC(5y)3.04%
1.3 Margins
Looking at the Profit Margin, with a value of 34.98%, BNL belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
In the last couple of years the Profit Margin of BNL has grown nicely.
BNL's Operating Margin of 50.54% is amongst the best of the industry. BNL outperforms 93.50% of its industry peers.
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 (87.12%) than 89.43% of its industry peers.
BNL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.54% | ||
| PM (TTM) | 34.98% | ||
| GM | 87.12% |
OM growth 3Y5.16%
OM growth 5Y1.49%
PM growth 3Y30.09%
PM growth 5Y3.66%
GM growth 3Y1.82%
GM growth 5Y-0.14%
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.
BNL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BNL has been increased compared to 5 years ago.
Compared to 1 year ago, BNL has an improved debt to assets ratio.
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.
The Altman-Z score of BNL (0.87) is better than 69.92% of its industry peers.
BNL has a debt to FCF ratio of 19.05. This is a negative value and a sign of low solvency as BNL would need 19.05 years to pay back of all of its debts.
BNL has a Debt to FCF ratio of 19.05. This is in the better half of the industry: BNL outperforms 69.11% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that BNL is somewhat dependend on debt financing.
BNL's Debt to Equity ratio of 0.63 is amongst the best of the industry. BNL outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 19.05 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.48
WACC7.1%
2.3 Liquidity
BNL has a Current Ratio of 1.72. This is a normal value and indicates that BNL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BNL (1.72) is better than 69.92% of its industry peers.
A Quick Ratio of 1.72 indicates that BNL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.72, BNL is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.89% over the past year.
The Earnings Per Share has been growing by 12.13% on average over the past years. This is quite good.
BNL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.71%.
BNL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.27% yearly.
EPS 1Y (TTM)13.89%
EPS 3Y25.99%
EPS 5Y12.13%
EPS growth Q2Q-85%
Revenue 1Y (TTM)8.71%
Revenue growth 3Y11.26%
Revenue growth 5Y13.27%
Revenue growth Q2Q-6.33%
3.2 Future
Based on estimates for the next years, BNL will show a decrease in Earnings Per Share. The EPS will decrease by -5.25% on average per year.
Based on estimates for the next years, BNL will show a small growth in Revenue. The Revenue will grow by 1.43% on average per year.
EPS Next Y-15.83%
EPS Next 2Y-5.39%
EPS Next 3Y-6.2%
EPS Next 5Y-5.25%
Revenue Next Year-3.68%
Revenue Next 2Y0.38%
Revenue Next 3Y2.12%
Revenue Next 5Y1.43%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.83, which indicates a rather expensive current valuation of BNL.
Compared to the rest of the industry, the Price/Earnings ratio of BNL indicates a rather cheap valuation: BNL is cheaper than 86.99% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BNL to the average of the S&P500 Index (24.55), we can say BNL is valued slightly cheaper.
The Price/Forward Earnings ratio is 21.18, which indicates a rather expensive current valuation of BNL.
BNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. BNL is cheaper than 90.24% of the companies in the same industry.
BNL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 21.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BNL is valued a bit cheaper than the industry average as 67.48% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BNL indicates a somewhat cheap valuation: BNL is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.45 | ||
| EV/EBITDA | 12.33 |
4.3 Compensation for Growth
The excellent profitability rating of BNL may justify a higher PE ratio.
BNL's earnings are expected to decrease with -6.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y-5.39%
EPS Next 3Y-6.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.83%, BNL is a good candidate for dividend investing.
BNL's Dividend Yield is a higher than the industry average which is at 6.00.
BNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
5.2 History
BNL has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BNL pays out 133.94% of its income as dividend. This is not a sustainable payout ratio.
DP133.94%
EPS Next 2Y-5.39%
EPS Next 3Y-6.2%
BROADSTONE NET LEASE INC
NYSE:BNL (5/1/2024, 7:04:00 PM)
After market: 14.62 0 (0%)14.62
+0.06 (+0.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 21.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 50.54% | ||
| PM (TTM) | 34.98% | ||
| GM | 87.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.89%
EPS 3Y25.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.71%
Revenue growth 3Y11.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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