NNN REIT INC (NNN) Stock Fundamental Analysis
USA - NYSE:NNN - US6374171063 - REIT
42.76 USD
+0.48 (+1.14%)
42.7 USD
-0.06 (-0.14%)
Taking everything into account, NNN scores 4 out of 10 in our fundamental rating. NNN was compared to 129 industry peers in the Diversified REITs industry. While NNN belongs to the best of the industry regarding profitability, there are concerns on its financial health. NNN is valued expensive and it does not seem to be growing. NNN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NNN was profitable.
In the past year NNN had a positive cash flow from operations.
NNN had positive earnings in each of the past 5 years.
NNN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NNN has a Return On Assets of 4.29%. This is amongst the best in the industry. NNN outperforms 88.37% of its industry peers.
NNN has a Return On Equity of 8.99%. This is amongst the best in the industry. NNN outperforms 85.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.80%, NNN belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
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 3.01%.
The last Return On Invested Capital (4.80%) for NNN is above the 3 year average (4.76%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 43.82%, NNN belongs to the best of the industry, outperforming 93.80% of the companies in the same industry.
NNN's Profit Margin has improved in the last couple of years.
NNN has a Operating Margin of 61.94%. This is amongst the best in the industry. NNN outperforms 96.90% of its industry peers.
In the last couple of years the Operating Margin of NNN has remained more or less at the same level.
The Gross Margin of NNN (95.91%) is better than 96.90% of its industry peers.
NNN's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for NNN has been increased compared to 1 year ago.
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
Based on the Altman-Z score of 1.17, we must say that NNN is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.17, NNN belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that NNN has dependencies on debt financing.
NNN has a Debt to Equity ratio (1.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.71
WACC6.77%
2.3 Liquidity
A Current Ratio of 0.28 indicates that NNN may have some problems paying its short term obligations.
NNN has a worse Current ratio (0.28) than 89.15% of its industry peers.
A Quick Ratio of 0.28 indicates that NNN may have some problems paying its short term obligations.
With a Quick ratio value of 0.28, NNN is not doing good in the industry: 89.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
NNN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.41%.
NNN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.63% yearly.
NNN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.30%.
The Revenue has been growing slightly by 5.33% on average over the past years.
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
Based on estimates for the next years, NNN will show a small growth in Earnings Per Share. The EPS will grow by 1.41% on average per year.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y-6.05%
EPS Next 2Y-0.52%
EPS Next 3Y1.41%
EPS Next 5YN/A
Revenue Next Year5.23%
Revenue Next 2Y4.65%
Revenue Next 3Y3.8%
Revenue Next 5Y5.42%
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 20.36 indicates a rather expensive valuation of NNN.
Based on the Price/Earnings ratio, NNN is valued cheaper than 84.50% of the companies in the same industry.
NNN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
NNN is valuated rather expensively with a Price/Forward Earnings ratio of 20.10.
Based on the Price/Forward Earnings ratio, NNN is valued cheaper than 93.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, NNN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 20.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NNN is valued a bit more expensive than the industry average as 61.24% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.51 |
4.3 Compensation for Growth
NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.07
EPS Next 2Y-0.52%
EPS Next 3Y1.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.72%, NNN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.99, NNN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
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 110.01% 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.
DP110.01%
EPS Next 2Y-0.52%
EPS Next 3Y1.41%
42.76
+0.48 (+1.14%)
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 Change-0.03%
Ins Owners0.72%
Ins Owner Change0.32%
Market Cap8.07B
Analysts56.15
Price Target45.44 (6.27%)
Short Float %2.15%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
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)-0.13%
PT rev (3m)1.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 20.1 | ||
| P/S | 9.02 | ||
| P/FCF | N/A | ||
| P/OCF | 12.48 | ||
| P/B | 1.85 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 15.51 |
EPS(TTM)2.1
EY4.91%
EPS(NY)2.13
Fwd EY4.98%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)3.43
OCFY8.02%
SpS4.74
BVpS23.11
TBVpS22.92
PEG (NY)N/A
PEG (5Y)3.07
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 | 1.17 |
F-Score4
WACC6.77%
ROIC/WACC0.71
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 2Y-0.52%
EPS Next 3Y1.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.3%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%4.61%
Revenue Next Year5.23%
Revenue Next 2Y4.65%
Revenue Next 3Y3.8%
Revenue Next 5Y5.42%
EBIT growth 1Y-17.56%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year50.42%
EBIT Next 3Y18.18%
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%