NNN REIT INC (NNN) Stock Fundamental Analysis
USA - NYSE:NNN - US6374171063 - REIT
42.12 USD
-0.16 (-0.38%)
42.1 USD
-0.02 (-0.05%)
Taking everything into account, NNN scores 5 out of 10 in our fundamental rating. NNN was compared to 130 industry peers in the Diversified REITs industry. While NNN has a great profitability rating, there are quite some concerns on its financial health. NNN is valued correctly, but it does not seem to be growing. Finally NNN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NNN was profitable.
In the past year NNN had a positive cash flow from operations.
NNN had positive earnings in each of the past 5 years.
Each year in the past 5 years NNN had a positive operating cash flow.
1.2 Ratios
NNN's Return On Assets of 4.29% is amongst the best of the industry. NNN outperforms 88.46% of its industry peers.
NNN's Return On Equity of 8.99% is amongst the best of the industry. NNN outperforms 85.38% of its industry peers.
NNN has a better Return On Invested Capital (4.80%) than 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NNN is in line with the industry average of 3.05%.
The last Return On Invested Capital (4.80%) for NNN is above the 3 year average (4.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 8.99% | ||
| ROIC | 4.8% |
ROA(3y)4.36%
ROA(5y)3.85%
ROE(3y)8.87%
ROE(5y)7.65%
ROIC(3y)4.76%
ROIC(5y)4.6%
1.3 Margins
The Profit Margin of NNN (43.82%) is better than 93.85% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
NNN's Operating Margin of 61.94% is amongst the best of the industry. NNN outperforms 96.92% of its industry peers.
In the last couple of years the Operating Margin of NNN has remained more or less at the same level.
NNN has a Gross Margin of 95.91%. This is amongst the best in the industry. NNN outperforms 96.92% of its industry peers.
NNN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.94% | ||
| PM (TTM) | 43.82% | ||
| GM | 95.91% |
OM growth 3Y0.41%
OM growth 5Y0.12%
PM growth 3Y7.9%
PM growth 5Y3.47%
GM growth 3Y0.07%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NNN is destroying value.
NNN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NNN has more shares outstanding
NNN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that NNN is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.16, NNN belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that NNN has dependencies on debt financing.
The Debt to Equity ratio of NNN (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.16 |
ROIC/WACC0.7
WACC6.84%
2.3 Liquidity
A Current Ratio of 0.28 indicates that NNN may have some problems paying its short term obligations.
The Current ratio of NNN (0.28) is worse than 88.46% of its industry peers.
A Quick Ratio of 0.28 indicates that NNN may have some problems paying its short term obligations.
With a Quick ratio value of 0.28, NNN is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
NNN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.41%.
NNN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.63% yearly.
NNN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.30%.
NNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.33% yearly.
EPS 1Y (TTM)-5.41%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)-16.3%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%4.61%
3.2 Future
The Earnings Per Share is expected to grow by 1.03% on average over the next years.
Based on estimates for the next years, NNN will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y-6.05%
EPS Next 2Y14.35%
EPS Next 3Y1.03%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.55%
Revenue Next 3Y3.74%
Revenue Next 5Y5.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.06 indicates a rather expensive valuation of NNN.
Based on the Price/Earnings ratio, NNN is valued cheaply inside the industry as 85.38% of the companies are valued more expensively.
NNN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.98, which indicates a correct valuation of NNN.
NNN's Price/Forward Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 95.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NNN to the average of the S&P500 Index (22.86), we can say NNN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
NNN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.47 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.03
EPS Next 2Y14.35%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.68%, which is a nice return.
NNN's Dividend Yield is comparable with the industry average which is at 6.58.
Compared to an average S&P500 Dividend Yield of 2.38, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
5.2 History
The dividend of NNN has a limited annual growth rate of 0.74%.
NNN has been paying a dividend for at least 10 years, so it has a reliable track record.
NNN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.74%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
110.01% of the earnings are spent on dividend by NNN. This is not a sustainable payout ratio.
NNN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP110.01%
EPS Next 2Y14.35%
EPS Next 3Y1.03%
42.12
-0.16 (-0.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-0.21%
Ins Owners0.69%
Ins Owner Change0.32%
Market Cap7.95B
Analysts56.15
Price Target45.44 (7.88%)
Short Float %2.24%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
Yearly Dividend2.27
Dividend Growth(5Y)0.74%
DP110.01%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.71%
Min EPS beat(2)5.47%
Max EPS beat(2)9.95%
EPS beat(4)4
Avg EPS beat(4)7.14%
Min EPS beat(4)5.47%
Max EPS beat(4)9.95%
EPS beat(8)8
Avg EPS beat(8)10.73%
EPS beat(12)12
Avg EPS beat(12)9.59%
EPS beat(16)14
Avg EPS beat(16)6.98%
Revenue beat(2)2
Avg Revenue beat(2)2.39%
Min Revenue beat(2)0.56%
Max Revenue beat(2)4.22%
Revenue beat(4)3
Avg Revenue beat(4)1.19%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)4.22%
Revenue beat(8)6
Avg Revenue beat(8)1.17%
Revenue beat(12)8
Avg Revenue beat(12)0.85%
Revenue beat(16)10
Avg Revenue beat(16)0.81%
PT rev (1m)0.3%
PT rev (3m)1.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 14.98 | ||
| P/S | 8.89 | ||
| P/FCF | N/A | ||
| P/OCF | 12.29 | ||
| P/B | 1.82 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 15.47 |
EPS(TTM)2.1
EY4.99%
EPS(NY)2.81
Fwd EY6.67%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)3.43
OCFY8.14%
SpS4.74
BVpS23.11
TBVpS22.92
PEG (NY)N/A
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 8.99% | ||
| ROCE | 6.08% | ||
| ROIC | 4.8% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 4.86% | ||
| OM | 61.94% | ||
| PM (TTM) | 43.82% | ||
| GM | 95.91% | ||
| FCFM | N/A |
ROA(3y)4.36%
ROA(5y)3.85%
ROE(3y)8.87%
ROE(5y)7.65%
ROIC(3y)4.76%
ROIC(5y)4.6%
ROICexc(3y)4.76%
ROICexc(5y)4.65%
ROICexgc(3y)4.82%
ROICexgc(5y)4.72%
ROCE(3y)6.02%
ROCE(5y)5.82%
ROICexcg growth 3Y1.06%
ROICexcg growth 5Y1.72%
ROICexc growth 3Y1.19%
ROICexc growth 5Y1.8%
OM growth 3Y0.41%
OM growth 5Y0.12%
PM growth 3Y7.9%
PM growth 5Y3.47%
GM growth 3Y0.07%
GM growth 5Y0.09%
F-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.71 | ||
| Cap/Depr | 308.94% | ||
| Cap/Sales | 89.62% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 79.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.16 |
F-Score4
WACC6.84%
ROIC/WACC0.7
Cap/Depr(3y)313.19%
Cap/Depr(5y)261.77%
Cap/Sales(3y)90.34%
Cap/Sales(5y)75.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.41%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-6.9%
EPS Next Y-6.05%
EPS Next 2Y14.35%
EPS Next 3Y1.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.3%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%4.61%
Revenue Next Year5.11%
Revenue Next 2Y4.55%
Revenue Next 3Y3.74%
Revenue Next 5Y5.15%
EBIT growth 1Y-17.56%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year49.98%
EBIT Next 3Y18.2%
EBIT Next 5Y14.81%
FCF growth 1Y26.54%
FCF growth 3Y60.67%
FCF growth 5YN/A
OCF growth 1Y7.41%
OCF growth 3Y3.79%
OCF growth 5Y4.84%