NNN REIT INC (NNN) Stock Fundamental Analysis
NYSE:NNN - New York Stock Exchange, Inc. - US6374171063 - REIT - Currency: USD
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. NNN has an excellent profitability rating, but there are concerns on its financial health. NNN has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years NNN has been profitable.
Each year in the past 5 years NNN had a positive operating cash flow.
1.2 Ratios
NNN has a Return On Assets of 5.46%. This is amongst the best in the industry. NNN outperforms 95.38% of its industry peers.
Looking at the Return On Equity, with a value of 11.30%, NNN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
NNN's Return On Invested Capital of 6.06% is amongst the best of the industry. NNN outperforms 96.92% 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 3.15%.
The 3 year average ROIC (4.76%) for NNN is below the current ROIC(6.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.3% | ||
| ROIC | 6.06% |
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
With an excellent Profit Margin value of 44.76%, NNN belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
In the last couple of years the Profit Margin of NNN has grown nicely.
With an excellent Operating Margin value of 62.42%, NNN belongs to the best of the industry, outperforming 97.69% of the companies in the same industry.
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 96.21%. This is amongst the best in the industry. NNN outperforms 96.92% of its industry peers.
In the last couple of years the Gross Margin of NNN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.42% | ||
| PM (TTM) | 44.76% | ||
| GM | 96.21% |
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
NNN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NNN has more shares outstanding than it did 1 year ago.
NNN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NNN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that NNN is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.25, NNN belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
NNN has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NNN (1.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.88
WACC6.89%
2.3 Liquidity
A Current Ratio of 0.12 indicates that NNN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.12, NNN is doing worse than 94.62% of the companies in the same industry.
A Quick Ratio of 0.12 indicates that NNN may have some problems paying its short term obligations.
NNN has a Quick ratio of 0.12. This is amonst the worse of the industry: NNN underperforms 94.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
NNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.56%, which is quite good.
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.
The Revenue has been growing slightly by 4.97% in the past year.
The Revenue has been growing slightly by 5.33% on average over the past years.
EPS 1Y (TTM)8.56%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%46.55%
Revenue 1Y (TTM)4.97%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%4.47%
3.2 Future
NNN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.23% yearly.
The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y-6.28%
EPS Next 2Y-1.75%
EPS Next 3Y0.23%
EPS Next 5YN/A
Revenue Next Year4.87%
Revenue Next 2Y4.3%
Revenue Next 3Y3.7%
Revenue Next 5Y5.17%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.36 indicates a rather expensive valuation of NNN.
85.38% of the companies in the same industry are more expensive than NNN, based on the Price/Earnings ratio.
NNN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 20.16 indicates a rather expensive valuation of NNN.
Based on the Price/Forward Earnings ratio, NNN is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NNN to the average of the S&P500 Index (34.04), we can say NNN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 20.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NNN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.62
EPS Next 2Y-1.75%
EPS Next 3Y0.23%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.80%, which is a nice return.
Compared to an average industry Dividend Yield of 6.80, NNN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
5.2 History
The dividend of NNN has a limited annual growth rate of 0.74%.
NNN has paid a dividend for at least 10 years, which is a reliable track record.
NNN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.74%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
NNN pays out 86.49% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NNN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP86.49%
EPS Next 2Y-1.75%
EPS Next 3Y0.23%
41.84
-0.09 (-0.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner Change-0.18%
Ins Owners0.69%
Ins Owner Change11.25%
Market Cap7.86B
Analysts56.15
Price Target45.3 (8.27%)
Short Float %2.73%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
Yearly Dividend2.27
Dividend Growth(5Y)0.74%
DP86.49%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.23%
Min EPS beat(2)5.47%
Max EPS beat(2)6.98%
EPS beat(4)4
Avg EPS beat(4)8.78%
Min EPS beat(4)5.47%
Max EPS beat(4)16.52%
EPS beat(8)8
Avg EPS beat(8)10.85%
EPS beat(12)11
Avg EPS beat(12)7.99%
EPS beat(16)14
Avg EPS beat(16)6.37%
Revenue beat(2)1
Avg Revenue beat(2)1.81%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)4.22%
Revenue beat(4)3
Avg Revenue beat(4)1.28%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)4.22%
Revenue beat(8)5
Avg Revenue beat(8)0.97%
Revenue beat(12)7
Avg Revenue beat(12)0.76%
Revenue beat(16)10
Avg Revenue beat(16)0.85%
PT rev (1m)1.07%
PT rev (3m)0.33%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 20.16 | ||
| P/S | 7.15 | ||
| P/FCF | N/A | ||
| P/OCF | 12.13 | ||
| P/B | 1.81 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 13.15 |
EPS(TTM)2.41
EY5.76%
EPS(NY)2.08
Fwd EY4.96%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)3.45
OCFY8.24%
SpS5.85
BVpS23.18
TBVpS22.99
PEG (NY)N/A
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.3% | ||
| ROCE | 7.68% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 6.14% | ||
| OM | 62.42% | ||
| PM (TTM) | 44.76% | ||
| GM | 96.21% | ||
| 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-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 271.2% | ||
| Cap/Sales | 62.54% | ||
| Interest Coverage | 3.77 | ||
| Cash Conversion | 68.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 1.25 |
F-Score7
WACC6.89%
ROIC/WACC0.88
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)8.56%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%46.55%
EPS Next Y-6.28%
EPS Next 2Y-1.75%
EPS Next 3Y0.23%
EPS Next 5YN/A
Revenue 1Y (TTM)4.97%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%4.47%
Revenue Next Year4.87%
Revenue Next 2Y4.3%
Revenue Next 3Y3.7%
Revenue Next 5Y5.17%
EBIT growth 1Y30.39%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year49.98%
EBIT Next 3Y18.2%
EBIT Next 5Y14.45%
FCF growth 1Y79.24%
FCF growth 3Y60.67%
FCF growth 5YN/A
OCF growth 1Y8.94%
OCF growth 3Y3.79%
OCF growth 5Y4.84%