NNN REIT INC (NNN)
US6374171063 - REIT
We assign a fundamental rating of 5 out of 10 to NNN. NNN was compared to 126 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 on the other hand it scores bad on growth.
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.
Each year in the past 5 years NNN had a positive operating cash flow.
1.2 Ratios
NNN has a Return On Assets of 4.52%. This is amongst the best in the industry. NNN outperforms 88.62% of its industry peers.
NNN has a Return On Equity of 9.42%. This is amongst the best in the industry. NNN outperforms 85.37% of its industry peers.
NNN's Return On Invested Capital of 4.74% is amongst the best of the industry. NNN outperforms 89.43% of its industry peers.
NNN had an Average Return On Invested Capital over the past 3 years of 4.67%. This is in line with the industry average of 2.95%.
The 3 year average ROIC (4.67%) for NNN is below the current ROIC(4.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 9.42% | ||
| ROIC | 4.74% |
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 47.31% is amongst the best of the industry. NNN outperforms 95.12% 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 62.50%, NNN belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
NNN's Operating Margin has been stable in the last couple of years.
NNN's Gross Margin of 96.59% is amongst the best of the industry. NNN outperforms 97.56% 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 | 62.5% | ||
| PM (TTM) | 47.31% | ||
| 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
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
NNN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NNN has a worse debt to assets ratio.
2.2 Solvency
NNN has an Altman-Z score of 1.13. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
NNN has a better Altman-Z score (1.13) than 81.30% of its industry peers.
NNN has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.05, NNN is in line with its industry, outperforming 55.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.66
WACC7.21%
2.3 Liquidity
A Current Ratio of 0.14 indicates that NNN may have some problems paying its short term obligations.
With a Current ratio value of 0.14, NNN is not doing good in the industry: 97.56% of the companies in the same industry are doing better.
A Quick Ratio of 0.14 indicates that NNN may have some problems paying its short term obligations.
The Quick ratio of NNN (0.14) is worse than 97.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.89% 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 7.11% in the last year.
Measured over the past years, NNN shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
EPS 1Y (TTM)14.89%
EPS 3Y17.54%
EPS 5Y3.95%
EPS growth Q2Q6%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.82%
Revenue growth 5Y5.87%
Revenue growth Q2Q8.93%
3.2 Future
The Earnings Per Share is expected to decrease by -0.45% 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 4.08% on average per year.
EPS Next Y-7.88%
EPS Next 2Y-2.25%
EPS Next 3Y-0.45%
EPS Next 5YN/A
Revenue Next Year5.56%
Revenue Next 2Y5.12%
Revenue Next 3Y4.08%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.52, NNN is valued on the expensive side.
NNN's Price/Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 83.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of NNN to the average of the S&P500 Index (24.76), we can say NNN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.10, the valuation of NNN can be described as rather expensive.
91.87% 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 21.26, NNN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 20.1 |
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 | 15.38 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.69
EPS Next 2Y-2.25%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.51%, which is a nice return.
Compared to an average industry Dividend Yield of 5.97, 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 | 5.51% |
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 Years19
Div Non Decr Years19
5.3 Sustainability
103.25% of the earnings are spent on dividend by NNN. This is not a sustainable payout ratio.
The Dividend Rate of NNN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP103.25%
EPS Next 2Y-2.25%
EPS Next 3Y-0.45%
NNN REIT INC
NYSE:NNN (4/19/2024, 6:08:55 PM)
After market: 40 0 (0%)40
+0.23 (+0.58%)
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 Cap7.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
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 | 18.52 | ||
| Fwd PE | 20.1 | ||
| 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)4.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 9.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 62.5% | ||
| PM (TTM) | 47.31% | ||
| 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 | 1.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| 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)
Growth
EPS 1Y (TTM)14.89%
EPS 3Y17.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.11%
Revenue growth 3Y7.82%
Revenue growth 5Y
Revenue growth 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