NNN REIT INC (NNN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NNN - US6374171063 - REIT
41.04 USD
-0.15 (-0.36%)
41.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NNN. NNN was compared to 127 industry peers in the Diversified REITs industry. NNN has an excellent profitability rating, but there are some minor concerns on its financial health. NNN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NNN was profitable.
NNN had a positive operating cash flow in the past year.
NNN had positive earnings in each of the past 5 years.
In the past 5 years NNN always reported a positive cash flow from operatings.
1.2 Ratios
NNN has a Return On Assets of 4.12%. This is amongst the best in the industry. NNN outperforms 85.04% of its industry peers.
NNN has a Return On Equity of 8.85%. This is amongst the best in the industry. NNN outperforms 81.89% of its industry peers.
NNN's Return On Invested Capital of 4.71% is amongst the best of the industry. NNN outperforms 92.13% of its industry peers.
NNN had an Average Return On Invested Capital over the past 3 years of 4.76%. This is in line with the industry average of 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 8.85% | ||
| ROIC | 4.71% |
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 (43.14%) is better than 92.91% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
NNN's Operating Margin of 61.80% is amongst the best of the industry. NNN outperforms 96.85% of its industry peers.
In the last couple of years the Operating Margin of NNN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 95.75%, NNN belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
NNN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.8% | ||
| PM (TTM) | 43.14% | ||
| GM | 95.75% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNN is destroying value.
Compared to 1 year ago, NNN has more shares outstanding
NNN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NNN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that NNN is in the distress zone and has some risk of bankruptcy.
NNN's Altman-Z score of 1.10 is amongst the best of the industry. NNN outperforms 81.89% of its industry peers.
A Debt/Equity ratio of 1.10 is on the high side and indicates that NNN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.10, NNN is in line with its industry, outperforming 56.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.69
WACC6.85%
2.3 Liquidity
NNN has a Current Ratio of 2.00. This indicates that NNN is financially healthy and has no problem in meeting its short term obligations.
NNN has a Current ratio of 2.00. This is amongst the best in the industry. NNN outperforms 82.68% of its industry peers.
A Quick Ratio of 2.00 indicates that NNN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.00, NNN belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
NNN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.70%.
Measured over the past 5 years, NNN shows a small growth in Earnings Per Share. The EPS has been growing by 6.63% on average per year.
NNN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.27%.
NNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.33% yearly.
EPS 1Y (TTM)-3.7%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%5.31%
3.2 Future
The Earnings Per Share is expected to decrease by -0.26% 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 5.76% on average per year.
EPS Next Y-5.34%
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue Next Year5.88%
Revenue Next 2Y5.35%
Revenue Next 3Y5.18%
Revenue Next 5Y5.76%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.73 indicates a rather expensive valuation of NNN.
Based on the Price/Earnings ratio, NNN is valued cheaper than 81.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, NNN is valued a bit cheaper.
NNN is valuated rather expensively with a Price/Forward Earnings ratio of 20.22.
Based on the Price/Forward Earnings ratio, NNN is valued cheaply inside the industry as 92.91% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NNN to the average of the S&P500 Index (23.88), we can say NNN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 20.22 |
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 | 15.22 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.98
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 6.06%, which is a nice return.
Compared to an average industry Dividend Yield of 6.83, NNN has a dividend in line with its industry peers.
NNN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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
112.03% of the earnings are spent on dividend by NNN. This is not a sustainable payout ratio.
The Dividend Rate of NNN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP112.03%
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
41.04
-0.15 (-0.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.28%
Inst Owner Change0%
Ins Owners0.72%
Ins Owner Change0.47%
Market Cap7.79B
Revenue(TTM)906.30M
Net Income(TTM)391.00M
Analysts56.15
Price Target45.14 (9.99%)
Short Float %2.64%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
Yearly Dividend2.27
Dividend Growth(5Y)0.74%
DP112.03%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.76%
Min EPS beat(2)5.57%
Max EPS beat(2)9.95%
EPS beat(4)4
Avg EPS beat(4)6.99%
Min EPS beat(4)5.47%
Max EPS beat(4)9.95%
EPS beat(8)8
Avg EPS beat(8)8.22%
EPS beat(12)12
Avg EPS beat(12)9.26%
EPS beat(16)14
Avg EPS beat(16)6.86%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.44%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)4.22%
Revenue beat(8)7
Avg Revenue beat(8)1.31%
Revenue beat(12)9
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)0.84%
PT rev (1m)-0.23%
PT rev (3m)-0.66%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)0.75%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 20.22 | ||
| P/S | 8.6 | ||
| P/FCF | N/A | ||
| P/OCF | 11.83 | ||
| P/B | 1.76 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)2.08
EY5.07%
EPS(NY)2.03
Fwd EY4.95%
FCF(TTM)-1.61
FCFYN/A
OCF(TTM)3.47
OCFY8.45%
SpS4.77
BVpS23.27
TBVpS23.08
PEG (NY)N/A
PEG (5Y)2.98
Graham Number33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 8.85% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 4.84% | ||
| OM | 61.8% | ||
| PM (TTM) | 43.14% | ||
| GM | 95.75% | ||
| 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%
ROICexgc growth 3Y1.06%
ROICexgc 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-Score3
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.91 | ||
| Cap/Depr | 366.02% | ||
| Cap/Sales | 106.38% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 79.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 1.1 |
F-Score3
WACC6.85%
ROIC/WACC0.69
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)-3.7%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-3.77%
EPS Next Y-5.34%
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%5.31%
Revenue Next Year5.88%
Revenue Next 2Y5.35%
Revenue Next 3Y5.18%
Revenue Next 5Y5.76%
EBIT growth 1Y-17.63%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year51.27%
EBIT Next 3Y19.22%
EBIT Next 5Y15.92%
FCF growth 1Y-62.93%
FCF growth 3Y60.67%
FCF growth 5YN/A
OCF growth 1Y9.06%
OCF growth 3Y3.79%
OCF growth 5Y4.84%
NNN REIT INC / NNN FAQ
Can you provide the ChartMill fundamental rating for NNN REIT INC?
ChartMill assigns a fundamental rating of 5 / 10 to NNN.
What is the valuation status of NNN REIT INC (NNN) stock?
ChartMill assigns a valuation rating of 4 / 10 to NNN REIT INC (NNN). This can be considered as Fairly Valued.
What is the profitability of NNN stock?
NNN REIT INC (NNN) has a profitability rating of 8 / 10.
Can you provide the financial health for NNN stock?
The financial health rating of NNN REIT INC (NNN) is 5 / 10.
Can you provide the expected EPS growth for NNN stock?
The Earnings per Share (EPS) of NNN REIT INC (NNN) is expected to decline by -5.34% in the next year.