BROADSTONE NET LEASE INC (BNL) Stock Fundamental Analysis
NYSE:BNL - New York Stock Exchange, Inc. - US11135E2037 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to BNL. BNL was compared to 129 industry peers in the Diversified REITs industry. BNL scores excellent on profitability, but there are concerns on its financial health. BNL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BNL was profitable.
BNL had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.16%, BNL is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
The Return On Equity of BNL (3.83%) is better than 66.67% of its industry peers.
The Return On Invested Capital of BNL (3.31%) is better than 62.79% 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 3.15%.
The 3 year average ROIC (3.20%) for BNL is below the current ROIC(3.31%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 25.94%, BNL belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
BNL's Profit Margin has improved in the last couple of years.
BNL has a better Operating Margin (49.35%) than 91.47% of its industry peers.
BNL's Operating Margin has been stable in the last couple of years.
BNL has a Gross Margin of 86.93%. This is amongst the best in the industry. BNL outperforms 88.37% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BNL 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 a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that BNL is in the distress zone and has some risk of bankruptcy.
BNL has a better Altman-Z score (0.89) than 70.54% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that BNL is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.68, BNL belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.41
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.58 indicates that BNL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.58, BNL is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that BNL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.58, BNL is in the better half of the industry, outperforming 72.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for BNL have decreased strongly by -36.46% in the last year.
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.
BNL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.64% yearly.
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
BNL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.93% yearly.
Based on estimates for the next years, BNL will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-18.54%
EPS Next 2Y-7.21%
EPS Next 3Y-9.9%
EPS Next 5Y-7.93%
Revenue Next Year4.22%
Revenue Next 2Y4.72%
Revenue Next 3Y6.02%
Revenue Next 5Y4.44%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 26.43, which means the current valuation is very expensive for BNL.
72.87% of the companies in the same industry are more expensive than BNL, based on the Price/Earnings ratio.
BNL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.52, BNL is valued on the expensive side.
BNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. BNL is cheaper than 86.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, BNL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BNL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
BNL has an outstanding profitability rating, which may justify a higher PE ratio.
BNL's earnings are expected to decrease with -9.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.65
EPS Next 2Y-7.21%
EPS Next 3Y-9.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.11%, BNL is a good candidate for dividend investing.
BNL's Dividend Yield is a higher than the industry average which is at 6.77.
Compared to an average S&P500 Dividend Yield of 2.40, BNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
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-7.21%
EPS Next 3Y-9.9%
16.12
-0.19 (-1.16%)
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 Change1.35%
Ins Owners0.88%
Ins Owner Change10.35%
Market Cap3.05B
Analysts74.29
Price Target19.09 (18.42%)
Short Float %3.28%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
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)-0.76%
PT rev (3m)1.55%
EPS NQ rev (1m)8.82%
EPS NQ rev (3m)6.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 21.52 | ||
| P/S | 7 | ||
| P/FCF | N/A | ||
| P/OCF | 11.01 | ||
| P/B | 1.03 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)0.61
EY3.78%
EPS(NY)0.75
Fwd EY4.65%
FCF(TTM)-0.99
FCFYN/A
OCF(TTM)1.46
OCFY9.08%
SpS2.3
BVpS15.6
TBVpS12.33
PEG (NY)N/A
PEG (5Y)2.65
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 | 0.89 |
F-Score5
WACC8.04%
ROIC/WACC0.41
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-18.54%
EPS Next 2Y-7.21%
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 2Y4.72%
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%