NNN REIT INC (NNN)
US6374171063 - REIT
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 concerns on its financial health. NNN is quite expensive at the moment. It does show a decent growth rate. 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.
Each year in the past 5 years NNN has 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 (4.55%) than 90.40% of its industry peers.
NNN has a Return On Equity of 9.48%. This is amongst the best in the industry. NNN outperforms 88.80% of its industry peers.
NNN has a better Return On Invested Capital (4.82%) than 89.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NNN is in line with the industry average of 3.01%.
The last Return On Invested Capital (4.82%) for NNN is above the 3 year average (4.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 9.48% | ||
| ROIC | 4.82% |
ROA(3y)4.01%
ROA(5y)3.65%
ROE(3y)8.09%
ROE(5y)7.02%
ROIC(3y)4.67%
ROIC(5y)4.51%
1.3 Margins
NNN's Profit Margin of 47.17% is amongst the best of the industry. NNN outperforms 96.00% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
NNN has a Operating Margin of 62.74%. This is amongst the best in the industry. NNN outperforms 99.20% 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 better Gross Margin (96.59%) than 97.60% 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 | 62.74% | ||
| PM (TTM) | 47.17% | ||
| GM | 96.59% |
OM growth 3Y1.27%
OM growth 5Y0.01%
PM growth 3Y14.14%
PM growth 5Y2.72%
GM growth 3Y0.3%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNN 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.
NNN has a worse debt/assets ratio than last year.
2.2 Solvency
NNN has an Altman-Z score of 1.25. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
NNN has a Altman-Z score of 1.25. This is amongst the best in the industry. NNN outperforms 81.60% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that NNN has dependencies on debt financing.
NNN's Debt to Equity ratio of 1.04 is in line compared to the rest of the industry. NNN outperforms 55.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.7
WACC6.89%
2.3 Liquidity
NNN has a Current Ratio of 0.06. This is a bad value and indicates that NNN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.06, NNN is not doing good in the industry: 99.20% of the companies in the same industry are doing better.
NNN has a Quick Ratio of 0.06. This is a bad value and indicates that NNN is not financially healthy enough and could expect problems in meeting its short term obligations.
NNN has a Quick ratio of 0.06. This is amonst the worse of the industry: NNN underperforms 99.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.54% over the past year.
NNN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.95% yearly.
Looking at the last year, NNN shows a small growth in Revenue. The Revenue has grown by 6.66% in the last year.
NNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
EPS 1Y (TTM)13.54%
EPS 3Y17.54%
EPS 5Y3.95%
EPS Q2Q%4%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y7.82%
Revenue growth 5Y5.87%
Sales Q2Q%5.54%
3.2 Future
The Earnings Per Share is expected to grow by 1.25% on average over the next years.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y-6.36%
EPS Next 2Y-1.5%
EPS Next 3Y1.25%
EPS Next 5YN/A
Revenue Next Year4.78%
Revenue Next 2Y4.29%
Revenue Next 3Y2.87%
Revenue Next 5Y4.89%
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
Based on the Price/Earnings ratio of 20.88, the valuation of NNN can be described as rather expensive.
NNN's Price/Earnings ratio is a bit cheaper when compared to the industry. NNN is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of NNN to the average of the S&P500 Index (24.41), we can say NNN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.72, the valuation of NNN can be described as rather expensive.
88.80% of the companies in the same industry are more expensive than NNN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, NNN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 21.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NNN is valued a bit more expensive than the industry average as 61.60% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.46 |
4.3 Compensation for Growth
NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.29
EPS Next 2Y-1.5%
EPS Next 3Y1.25%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.05%, which is a nice return.
NNN's Dividend Yield is comparable with the industry average which is at 5.52.
Compared to an average S&P500 Dividend Yield of 2.30, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
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 Years32
Div Non Decr Years32
5.3 Sustainability
NNN pays out 102.98% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NNN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP102.98%
EPS Next 2Y-1.5%
EPS Next 3Y1.25%
NNN REIT INC
NYSE:NNN (7/26/2024, 7:04:01 PM)
After market: 45.52 0 (0%)45.52
+0.37 (+0.82%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 21.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 9.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 62.74% | ||
| PM (TTM) | 47.17% | ||
| GM | 96.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.54%
EPS 3Y17.54%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.66%
Revenue growth 3Y7.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y