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 128 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 not valued too expensively and it also shows a decent growth rate.
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.
NNN had positive earnings in each of the past 5 years.
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 95.35% of its industry peers.
NNN has a better Return On Equity (11.30%) than 92.25% of its industry peers.
NNN's Return On Invested Capital of 6.06% is amongst the best of the industry. NNN outperforms 96.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NNN is in line with the industry average of 3.14%.
The last Return On Invested Capital (6.06%) for NNN is above the 3 year average (4.76%), which is a sign of increasing profitability.
| 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
NNN has a better Profit Margin (44.76%) than 95.35% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
NNN's Operating Margin of 62.42% is amongst the best of the industry. NNN outperforms 96.90% of its industry peers.
NNN's Operating Margin has been stable in the last couple of years.
NNN has a better Gross Margin (96.21%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NNN is destroying value.
NNN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NNN has more shares outstanding
NNN has a better debt/assets ratio than last year.
2.2 Solvency
NNN has an Altman-Z score of 1.26. 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 1.26. This is amongst the best in the industry. NNN outperforms 85.27% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that NNN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.03, NNN perfoms like the industry average, outperforming 56.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.73
WACC8.27%
2.3 Liquidity
A Current Ratio of 0.12 indicates that NNN may have some problems paying its short term obligations.
NNN has a worse Current ratio (0.12) than 93.80% of its industry peers.
NNN has a Quick Ratio of 0.12. This is a bad value and indicates that NNN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NNN (0.12) is worse than 93.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
NNN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.83%.
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 grown by 31.07% in the past year. This is a very strong growth!
Measured over the past years, NNN shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)-1.83%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-1.92%
Revenue 1Y (TTM)31.07%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%7.17%
3.2 Future
The Earnings Per Share is expected to grow by 0.39% on average over the next years.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y-6.28%
EPS Next 2Y-1.69%
EPS Next 3Y0.39%
EPS Next 5YN/A
Revenue Next Year4.61%
Revenue Next 2Y4.32%
Revenue Next 3Y3.62%
Revenue Next 5Y4.95%
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.
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
NNN is valuated rather expensively with a Price/Earnings ratio of 19.86.
Based on the Price/Earnings ratio, NNN is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
NNN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
NNN is valuated rather expensively with a Price/Forward Earnings ratio of 20.45.
NNN's Price/Forward Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 89.92% of the companies in the same industry.
NNN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NNN indicates a somewhat cheap valuation: NNN is cheaper than 60.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.27 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3
EPS Next 2Y-1.69%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.43%, NNN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.72, NNN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
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 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-1.69%
EPS Next 3Y0.39%
42.5
-0.2 (-0.47%)
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-0.84%
Ins Owners0.69%
Ins Owner Change11.59%
Market Cap7.99B
Analysts66.09
Price Target44.88 (5.6%)
Short Float %3.12%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
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)-0.73%
PT rev (3m)0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 20.45 | ||
| P/S | 7.26 | ||
| P/FCF | N/A | ||
| P/OCF | 12.33 | ||
| P/B | 1.83 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 13.27 |
EPS(TTM)2.14
EY5.04%
EPS(NY)2.08
Fwd EY4.89%
FCF(TTM)-0.21
FCFYN/A
OCF(TTM)3.45
OCFY8.11%
SpS5.85
BVpS23.18
TBVpS22.99
PEG (NY)N/A
PEG (5Y)3
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 | 1.26 |
F-Score7
WACC8.27%
ROIC/WACC0.73
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)-1.83%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-1.92%
EPS Next Y-6.28%
EPS Next 2Y-1.69%
EPS Next 3Y0.39%
EPS Next 5YN/A
Revenue 1Y (TTM)31.07%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%7.17%
Revenue Next Year4.61%
Revenue Next 2Y4.32%
Revenue Next 3Y3.62%
Revenue Next 5Y4.95%
EBIT growth 1Y30.39%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year49.33%
EBIT Next 3Y18.07%
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%