NNN REIT INC (NNN)

US6374171063 - REIT

42.51  +0.85 (+2.04%)

Fundamental Rating

5

NNN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. NNN has an excellent profitability rating, but there are concerns on its financial health. NNN has a correct valuation and a medium growth rate. Finally NNN also has an excellent dividend rating.



9

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.
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 4.55%, NNN belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
The Return On Equity of NNN (9.48%) is better than 88.80% of its industry peers.
NNN's Return On Invested Capital of 4.82% is amongst the best of the industry. NNN outperforms 89.60% 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 3.01%.
The 3 year average ROIC (4.67%) for NNN is below the current ROIC(4.82%), indicating increased profibility in the last year.
Industry RankSector 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 has a better Profit Margin (47.17%) than 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.
The Gross Margin of NNN (96.59%) is better than 97.60% of its industry peers.
NNN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

1

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.
The number of shares outstanding for NNN has been increased compared to 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 1.17. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.17, NNN belongs to the top of the industry, outperforming 81.60% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that NNN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.04, NNN perfoms like the industry average, outperforming 55.20% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF N/A
Altman-Z 1.17
ROIC/WACC0.69
WACC7.02%

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's Quick ratio of 0.06 is on the low side compared to the rest of the industry. NNN is outperformed by 99.20% of its industry peers.
Industry RankSector Rank
Current Ratio 0.06
Quick Ratio 0.06

4

3. Growth

3.1 Past

NNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.54%, which is quite good.
Measured over the past 5 years, NNN shows a small growth in Earnings Per Share. The EPS has been growing by 3.95% on average per year.
The Revenue has been growing slightly by 6.66% in the past year.
The Revenue has been growing slightly by 5.87% on average over the past years.
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 1.40% on average over the next years.
NNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-6.01%
EPS Next 2Y-1.74%
EPS Next 3Y1.4%
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y4.66%
Revenue Next 3Y2.91%
Revenue Next 5Y4.89%

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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 19.50, the valuation of NNN can be described as rather expensive.
Based on the Price/Earnings ratio, NNN is valued cheaper than 83.20% 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 28.24.
With a Price/Forward Earnings ratio of 20.38, NNN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NNN indicates a rather cheap valuation: NNN is cheaper than 88.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, NNN is valued at the same level.
Industry RankSector Rank
PE 19.5
Fwd PE 20.38

4.2 Price Multiples

NNN's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.63

4.3 Compensation for Growth

NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.94
EPS Next 2Y-1.74%
EPS Next 3Y1.4%

7

5. Dividend

5.1 Amount

NNN has a Yearly Dividend Yield of 5.29%, which is a nice return.
NNN's Dividend Yield is comparable with the industry average which is at 5.76.
Compared to an average S&P500 Dividend Yield of 2.37, NNN pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.29%

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 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

102.98% of the earnings are spent on dividend by NNN. This is not a sustainable payout ratio.
NNN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP102.98%
EPS Next 2Y-1.74%
EPS Next 3Y1.4%

NNN REIT INC

NYSE:NNN (6/12/2024, 10:20:53 AM)

42.51

+0.85 (+2.04%)

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 Cap7.79B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.29%
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 RankSector Rank
PE 19.5
Fwd PE 20.38
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)4.94
Profitability
Industry RankSector 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 RankSector 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-6.01%
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