NNN REIT INC (NNN)
US6374171063 - REIT
Overall NNN gets a fundamental rating of 5 out of 10. We evaluated NNN against 131 industry peers in the Diversified REITs industry. NNN scores excellent on profitability, but there are concerns on its financial health. NNN is not valued too expensively and it also shows a decent growth rate. Finally 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.
Each year in the past 5 years NNN has been profitable.
Each year in the past 5 years NNN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.51%, NNN belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
NNN has a better Return On Equity (9.28%) than 89.15% of its industry peers.
NNN has a Return On Invested Capital of 4.68%. This is amongst the best in the industry. NNN outperforms 92.25% 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 2.90%.
The last Return On Invested Capital (4.68%) for NNN is above the 3 year average (4.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 9.28% | ||
| ROIC | 4.68% |
ROA(3y)3.42%
ROA(5y)3.47%
ROE(3y)6.57%
ROE(5y)6.37%
ROIC(3y)4.46%
ROIC(5y)4.43%
1.3 Margins
With an excellent Profit Margin value of 47.61%, NNN belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
In the last couple of years the Profit Margin of NNN has grown nicely.
NNN's Operating Margin of 62.14% is amongst the best of the industry. NNN outperforms 98.45% of its industry peers.
NNN's Operating Margin has been stable in the last couple of years.
The Gross Margin of NNN (96.67%) is better than 97.67% of its industry peers.
NNN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.14% | ||
| PM (TTM) | 47.61% | ||
| GM | 96.67% |
OM growth 3Y0.09%
OM growth 5Y0.55%
PM growth 3Y4%
PM growth 5Y3.13%
GM growth 3Y0.25%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NNN is destroying value.
Compared to 1 year ago, NNN has more shares outstanding
NNN has more shares outstanding than it did 5 years ago.
NNN has a better debt/assets ratio than last year.
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.
NNN has a better Altman-Z score (1.17) than 83.72% of its industry peers.
NNN has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
NNN has a Debt to Equity ratio of 1.02. This is comparable to the rest of the industry: NNN outperforms 53.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.64
WACC7.27%
2.3 Liquidity
NNN has a Current Ratio of 1.30. This is a normal value and indicates that NNN is financially healthy and should not expect problems in meeting its short term obligations.
NNN has a Current ratio of 1.30. This is comparable to the rest of the industry: NNN outperforms 53.49% of its industry peers.
NNN has a Quick Ratio of 1.30. This is a normal value and indicates that NNN is financially healthy and should not expect problems in meeting its short term obligations.
NNN has a Quick ratio (1.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
NNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.71%, which is quite impressive.
Measured over the past 5 years, NNN shows a small growth in Earnings Per Share. The EPS has been growing by 5.33% on average per year.
The Revenue has been growing slightly by 6.35% in the past year.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)21.71%
EPS 3Y6.42%
EPS 5Y5.33%
EPS growth Q2Q18%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.86%
Revenue growth 5Y5.74%
Revenue growth Q2Q5.99%
3.2 Future
The Earnings Per Share is expected to grow by 2.85% on average over the next years.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y13.71%
EPS Next 2Y2.88%
EPS Next 3Y2.85%
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y5.32%
Revenue Next 3Y3.66%
Revenue Next 5Y5.28%
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
A Price/Earnings ratio of 19.13 indicates a rather expensive valuation of NNN.
Based on the Price/Earnings ratio, NNN is valued cheaper than 83.72% 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 24.97.
The Price/Forward Earnings ratio is 20.48, which indicates a rather expensive current valuation of NNN.
Based on the Price/Forward Earnings ratio, NNN is valued cheaper than 89.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NNN to the average of the S&P500 Index (20.05), we can say NNN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
NNN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.67 |
4.3 Compensation for Growth
NNN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)3.59
EPS Next 2Y2.88%
EPS Next 3Y2.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.47%, NNN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.18, NNN has a dividend in line with its industry peers.
NNN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
5.2 History
The dividend of NNN has a limited annual growth rate of 0.35%.
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)0.35%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
NNN pays out 103.60% 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.
DP103.6%
EPS Next 2Y2.88%
EPS Next 3Y2.85%
NNN REIT INC
NYSE:NNN (12/8/2023, 7:06:56 PM)
After market: 40.75 0 (0%)40.75
-0.54 (-1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
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Market Cap7.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 20.48 | ||
| 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)1.39
PEG (5Y)3.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 9.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 62.14% | ||
| PM (TTM) | 47.61% | ||
| GM | 96.67% | ||
| 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 Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| 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)21.71%
EPS 3Y6.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.86%
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
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