NNN REIT INC (NNN) Stock Fundamental Analysis
NYSE:NNN - US6374171063 - REIT
42.91 USD
+0.73 (+1.73%)
42.91 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NNN. NNN was compared to 129 industry peers in the Diversified REITs industry. While NNN has a great profitability rating, there are quite some concerns on its financial health. NNN has a valuation in line with the averages, 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.
NNN had a positive operating cash flow in the past year.
In the past 5 years NNN has always been profitable.
In the past 5 years NNN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NNN (4.29%) is better than 88.37% of its industry peers.
NNN's Return On Equity of 8.99% is amongst the best of the industry. NNN outperforms 85.27% of its industry peers.
The Return On Invested Capital of NNN (4.80%) is better than 88.37% 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%.
The 3 year average ROIC (4.76%) for NNN is below the current ROIC(4.80%), indicating increased profibility in the last year.
| 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 93.80% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 61.94%, NNN belongs to the top of the industry, outperforming 96.90% of the companies in the same industry.
NNN's Operating Margin has been stable in the last couple of years.
The Gross Margin of NNN (95.91%) is better than 96.90% 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 | 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
NNN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, NNN has an improved debt to assets ratio.
2.2 Solvency
NNN has an Altman-Z score of 1.16. 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 1.16, NNN belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
NNN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external 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/WACC0.69
WACC6.92%
2.3 Liquidity
NNN has a Current Ratio of 0.28. This is a bad value and indicates that NNN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.28, NNN is doing worse than 87.60% of the companies in the same industry.
A Quick Ratio of 0.28 indicates that NNN may have some problems paying its short term obligations.
NNN has a worse Quick ratio (0.28) than 87.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for NNN have decreased by -5.41% 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.
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.
NNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
EPS Next Y-6.05%
EPS Next 2Y14.35%
EPS Next 3Y1.03%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y3.95%
Revenue Next 3Y2.63%
Revenue Next 5Y5.42%
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
Based on the Price/Earnings ratio of 20.43, the valuation of NNN can be described as rather expensive.
86.05% of the companies in the same industry are more expensive than NNN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NNN to the average of the S&P500 Index (27.08), we can say NNN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.26, the valuation of NNN can be described as correct.
Based on the Price/Forward Earnings ratio, NNN is valued cheaper than 96.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, NNN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NNN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.49 |
4.3 Compensation for Growth
NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.08
EPS Next 2Y14.35%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.70%, which is a nice return.
Compared to an average industry Dividend Yield of 6.31, NNN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
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 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%
42.91
+0.73 (+1.73%)
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 Change-1.33%
Market Cap8.10B
Analysts56.15
Price Target45.5 (6.04%)
Short Float %2.5%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
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)0.63%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 15.26 | ||
| P/S | 9.05 | ||
| P/FCF | N/A | ||
| P/OCF | 12.52 | ||
| P/B | 1.86 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 15.49 |
EPS(TTM)2.1
EY4.89%
EPS(NY)2.81
Fwd EY6.55%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)3.43
OCFY7.99%
SpS4.74
BVpS23.11
TBVpS22.92
PEG (NY)N/A
PEG (5Y)3.08
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
WACC6.92%
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)-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 Year4.36%
Revenue Next 2Y3.95%
Revenue Next 3Y2.63%
Revenue Next 5Y5.42%
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%