NNN REIT INC (NNN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NNN - US6374171063 - REIT
40.89 USD
-0.46 (-1.11%)
40.89 USD
0 (0%)
Overall NNN gets a fundamental rating of 5 out of 10. We evaluated NNN against 128 industry peers in the Diversified REITs industry. While NNN has a great profitability rating, 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
NNN had positive earnings in the past year.
NNN had a positive operating cash flow in the past year.
In the past 5 years NNN has always been profitable.
NNN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NNN has a better Return On Assets (4.12%) than 89.06% of its industry peers.
NNN has a Return On Equity of 8.85%. This is amongst the best in the industry. NNN outperforms 84.38% of its industry peers.
NNN has a Return On Invested Capital of 4.71%. This is amongst the best in the industry. NNN outperforms 91.41% 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 3.06%.
| 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
Looking at the Profit Margin, with a value of 43.14%, NNN belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
In the last couple of years the Profit Margin of NNN has grown nicely.
The Operating Margin of NNN (61.80%) is better than 96.88% of its industry peers.
NNN's Operating Margin has been stable in the last couple of years.
NNN has a better Gross Margin (95.75%) than 96.09% of its industry peers.
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
The number of shares outstanding for NNN has been increased compared to 5 years ago.
NNN has a better debt/assets ratio than last year.
2.2 Solvency
NNN has an Altman-Z score of 1.09. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, NNN belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
NNN has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
NNN's Debt to Equity ratio of 1.10 is in line compared to the rest of the industry. NNN outperforms 57.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.7
WACC6.74%
2.3 Liquidity
A Current Ratio of 2.00 indicates that NNN has no problem at all paying its short term obligations.
The Current ratio of NNN (2.00) is better than 81.25% of its industry peers.
A Quick Ratio of 2.00 indicates that NNN has no problem at all paying its short term obligations.
NNN's Quick ratio of 2.00 is amongst the best of the industry. NNN outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The earnings per share for NNN have decreased by -3.70% in the last year.
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.
Looking at the last year, NNN shows a very negative growth in Revenue. The Revenue has decreased by -16.27% in the last year.
Measured over the past years, NNN shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
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 grow by 0.57% 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-6.42%
EPS Next 2Y-2.31%
EPS Next 3Y0.57%
EPS Next 5YN/A
Revenue Next Year5.44%
Revenue Next 2Y4.78%
Revenue Next 3Y4.08%
Revenue Next 5Y5.76%
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
The Price/Earnings ratio is 19.66, which indicates a rather expensive current valuation of NNN.
NNN's Price/Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 85.16% of the companies in the same industry.
NNN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.93, NNN is valued on the expensive side.
94.53% of the companies in the same industry are more expensive than NNN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.21. NNN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 19.93 |
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 | 15.15 |
4.3 Compensation for Growth
NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.97
EPS Next 2Y-2.31%
EPS Next 3Y0.57%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.84%, which is a nice return.
NNN's Dividend Yield is comparable with the industry average which is at 6.34.
Compared to an average S&P500 Dividend Yield of 2.32, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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
NNN pays out 112.03% of its income as dividend. This is not a sustainable payout ratio.
NNN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP112.03%
EPS Next 2Y-2.31%
EPS Next 3Y0.57%
40.89
-0.46 (-1.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.07%
Inst Owner Change1.21%
Ins Owners0.72%
Ins Owner Change0.33%
Market Cap7.77B
Revenue(TTM)906.30M
Net Income(TTM)391.00M
Analysts56.15
Price Target45.24 (10.64%)
Short Float %2.91%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
Yearly Dividend2.27
Dividend Growth(5Y)0.74%
DP112.03%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.68%
Min EPS beat(2)-4.6%
Max EPS beat(2)9.95%
EPS beat(4)3
Avg EPS beat(4)4.45%
Min EPS beat(4)-4.6%
Max EPS beat(4)9.95%
EPS beat(8)7
Avg EPS beat(8)6.95%
EPS beat(12)11
Avg EPS beat(12)8.41%
EPS beat(16)13
Avg EPS beat(16)6.23%
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)-0.43%
PT rev (3m)-0.56%
EPS NQ rev (1m)-3.49%
EPS NQ rev (3m)6.55%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 19.93 | ||
| P/S | 8.57 | ||
| P/FCF | N/A | ||
| P/OCF | 11.79 | ||
| P/B | 1.76 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 15.15 |
EPS(TTM)2.08
EY5.09%
EPS(NY)2.05
Fwd EY5.02%
FCF(TTM)-1.61
FCFYN/A
OCF(TTM)3.47
OCFY8.48%
SpS4.77
BVpS23.27
TBVpS23.08
PEG (NY)N/A
PEG (5Y)2.97
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 | 1.09 |
F-Score3
WACC6.74%
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)-3.7%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-3.77%
EPS Next Y-6.42%
EPS Next 2Y-2.31%
EPS Next 3Y0.57%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%5.31%
Revenue Next Year5.44%
Revenue Next 2Y4.78%
Revenue Next 3Y4.08%
Revenue Next 5Y5.76%
EBIT growth 1Y-17.63%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year50.42%
EBIT Next 3Y18.18%
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.
Can you provide the valuation status for NNN REIT INC?
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.
What are the PE and PB ratios of NNN REIT INC (NNN) stock?
The Price/Earnings (PE) ratio for NNN REIT INC (NNN) is 19.66 and the Price/Book (PB) ratio is 1.76.
What is the earnings growth outlook for NNN REIT INC?
The Earnings per Share (EPS) of NNN REIT INC (NNN) is expected to decline by -6.42% in the next year.