NET LEASE OFFICE PROPERTY (NLOP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NLOP - US64110Y1082 - REIT
18.84 USD
-0.23 (-1.21%)
18.84 USD
0 (0%)
NLOP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. NLOP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NLOP is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- NLOP had negative earnings in the past year.
- In the past year NLOP had a positive cash flow from operations.
- In multiple years NLOP reported negative net income over the last 5 years.
- Each year in the past 5 years NLOP had a positive operating cash flow.
1.2 Ratios
- NLOP's Return On Assets of -34.64% is on the low side compared to the rest of the industry. NLOP is outperformed by 96.00% of its industry peers.
- Looking at the Return On Equity, with a value of -42.07%, NLOP is doing worse than 92.00% of the companies in the same industry.
- NLOP has a better Return On Invested Capital (4.88%) than 92.80% of its industry peers.
- NLOP had an Average Return On Invested Capital over the past 3 years of 2.84%. This is in line with the industry average of 3.07%.
- The last Return On Invested Capital (4.88%) for NLOP is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.64% | ||
| ROE | -42.07% | ||
| ROIC | 4.88% |
ROA(3y)-6.79%
ROA(5y)-3.86%
ROE(3y)-11.26%
ROE(5y)-6.42%
ROIC(3y)2.84%
ROIC(5y)2.82%
1.3 Margins
- NLOP's Operating Margin of 25.79% is in line compared to the rest of the industry. NLOP outperforms 56.80% of its industry peers.
- NLOP's Operating Margin has declined in the last couple of years.
- NLOP's Gross Margin of 66.45% is in line compared to the rest of the industry. NLOP outperforms 46.40% of its industry peers.
- In the last couple of years the Gross Margin of NLOP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.79% | ||
| PM (TTM) | N/A | ||
| GM | 66.45% |
OM growth 3Y-9.93%
OM growth 5Y-6.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.53%
GM growth 5Y-2.94%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLOP is destroying value.
- Compared to 1 year ago, NLOP has about the same amount of shares outstanding.
- The debt/assets ratio for NLOP has been reduced compared to a year ago.
2.2 Solvency
- NLOP has an Altman-Z score of 1.11. This is a bad value and indicates that NLOP is not financially healthy and even has some risk of bankruptcy.
- NLOP has a better Altman-Z score (1.11) than 81.60% of its industry peers.
- The Debt to FCF ratio of NLOP is 1.00, which is an excellent value as it means it would take NLOP, only 1.00 years of fcf income to pay off all of its debts.
- NLOP's Debt to FCF ratio of 1.00 is amongst the best of the industry. NLOP outperforms 100.00% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that NLOP is not too dependend on debt financing.
- The Debt to Equity ratio of NLOP (0.11) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.73
WACC6.69%
2.3 Liquidity
- NLOP has a Current Ratio of 1.01. This is a normal value and indicates that NLOP is financially healthy and should not expect problems in meeting its short term obligations.
- NLOP has a Current ratio (1.01) which is in line with its industry peers.
- NLOP has a Quick Ratio of 1.01. This is a normal value and indicates that NLOP is financially healthy and should not expect problems in meeting its short term obligations.
- NLOP's Quick ratio of 1.01 is in line compared to the rest of the industry. NLOP outperforms 55.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- NLOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.20%, which is quite good.
- The Revenue for NLOP has decreased by -27.97% in the past year. This is quite bad
- The Revenue has been decreasing by -4.00% on average over the past years.
EPS 1Y (TTM)9.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-58.92%
Revenue 1Y (TTM)-27.97%
Revenue growth 3Y-1.29%
Revenue growth 5Y-4%
Sales Q2Q%-5.39%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for NLOP. In the last year negative earnings were reported.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NLOP indicates a rather cheap valuation: NLOP is cheaper than 100.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NLOP is valued cheaply inside the industry as 96.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.92 | ||
| EV/EBITDA | 3.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- NLOP has a Yearly Dividend Yield of 62.44%, which is a nice return.
- In the last 3 months the price of NLOP has falen by -35.92%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 6.59, NLOP pays a better dividend. On top of this NLOP pays more dividend than 99.20% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, NLOP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 62.44% |
5.2 History
- NLOP has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of NLOP are negative and hence is the payout ratio. NLOP will probably not be able to sustain this dividend level.
DP-25.37%
EPS Next 2YN/A
EPS Next 3YN/A
NET LEASE OFFICE PROPERTY / NLOP FAQ
What is the ChartMill fundamental rating of NET LEASE OFFICE PROPERTY (NLOP) stock?
ChartMill assigns a fundamental rating of 3 / 10 to NLOP.
What is the valuation status of NET LEASE OFFICE PROPERTY (NLOP) stock?
ChartMill assigns a valuation rating of 2 / 10 to NET LEASE OFFICE PROPERTY (NLOP). This can be considered as Overvalued.
Can you provide the profitability details for NET LEASE OFFICE PROPERTY?
NET LEASE OFFICE PROPERTY (NLOP) has a profitability rating of 3 / 10.
Can you provide the financial health for NLOP stock?
The financial health rating of NET LEASE OFFICE PROPERTY (NLOP) is 6 / 10.