Spirit Realty Capital Inc (SRC) Stock Fundamental Analysis

NYSE:SRC • US84860W3007

42.31 USD
-0.67 (-1.56%)
At close: Jan 22, 2024
42.31 USD
0 (0%)
After Hours: 1/22/2024, 8:08:28 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, SRC scores 4 out of 10 in our fundamental rating. SRC was compared to 122 industry peers in the Diversified REITs industry. SRC has an excellent profitability rating, but there are concerns on its financial health. SRC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year SRC was profitable.
  • SRC had a positive operating cash flow in the past year.
SRC Yearly Net Income VS EBIT VS OCF VS FCFSRC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.87%, SRC is in the better half of the industry, outperforming 74.40% of the companies in the same industry.
  • With a decent Return On Equity value of 5.52%, SRC is doing good in the industry, outperforming 76.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 3.14%, SRC is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SRC is in line with the industry average of 3.09%.
  • The 3 year average ROIC (2.96%) for SRC is below the current ROIC(3.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.87%
ROE 5.52%
ROIC 3.14%
ROA(3y)1.89%
ROA(5y)2.17%
ROE(3y)3.49%
ROE(5y)3.92%
ROIC(3y)2.96%
ROIC(5y)3.19%
SRC Yearly ROA, ROE, ROICSRC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2 4 6

1.3 Margins

  • SRC has a Profit Margin of 32.87%. This is amongst the best in the industry. SRC outperforms 87.20% of its industry peers.
  • SRC's Profit Margin has improved in the last couple of years.
  • SRC has a Operating Margin of 44.35%. This is amongst the best in the industry. SRC outperforms 88.80% of its industry peers.
  • SRC's Operating Margin has improved in the last couple of years.
  • SRC has a Gross Margin of 95.85%. This is amongst the best in the industry. SRC outperforms 96.00% of its industry peers.
  • SRC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 44.35%
PM (TTM) 32.87%
GM 95.85%
OM growth 3Y-3.89%
OM growth 5Y2.83%
PM growth 3Y6.81%
PM growth 5Y17.76%
GM growth 3Y-0.21%
GM growth 5Y0.51%
SRC Yearly Profit, Operating, Gross MarginsSRC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRC is destroying value.
  • The number of shares outstanding for SRC has been increased compared to 1 year ago.
  • SRC has a worse debt/assets ratio than last year.
SRC Yearly Shares OutstandingSRC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M
SRC Yearly Total Debt VS Total AssetsSRC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

2.2 Solvency

  • SRC has an Altman-Z score of 0.58. This is a bad value and indicates that SRC is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of SRC (0.58) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.85 indicates that SRC is somewhat dependend on debt financing.
  • SRC has a better Debt to Equity ratio (0.85) than 64.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF N/A
Altman-Z 0.58
ROIC/WACC0.45
WACC6.93%
SRC Yearly LT Debt VS Equity VS FCFSRC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B 3B 4B

2.3 Liquidity

  • SRC has a Current Ratio of 0.61. This is a bad value and indicates that SRC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.61, SRC is not doing good in the industry: 77.60% of the companies in the same industry are doing better.
  • SRC has a Quick Ratio of 0.61. This is a bad value and indicates that SRC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of SRC (0.58) is worse than 77.60% of its industry peers.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.58
SRC Yearly Current Assets VS Current LiabilitesSRC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • SRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.41%.
  • The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
  • Looking at the last year, SRC shows a quite strong growth in Revenue. The Revenue has grown by 10.57% in the last year.
  • SRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.47% yearly.
EPS 1Y (TTM)-7.41%
EPS 3Y1%
EPS 5Y20.59%
EPS Q2Q%-53.7%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y11.18%
Revenue growth 5Y10.47%
Sales Q2Q%5.74%

3.2 Future

  • Based on estimates for the next years, SRC will show a decrease in Earnings Per Share. The EPS will decrease by -7.61% on average per year.
  • The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y-16.82%
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
EPS Next 5Y-7.61%
Revenue Next Year7.73%
Revenue Next 2Y5.01%
Revenue Next 3Y4.5%
Revenue Next 5Y6.45%

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.
SRC Yearly Revenue VS EstimatesSRC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
SRC Yearly EPS VS EstimatesSRC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.18, the valuation of SRC can be described as rather expensive.
  • Based on the Price/Earnings ratio, SRC is valued a bit cheaper than the industry average as 70.40% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, SRC is valued at the same level.
  • The Price/Forward Earnings ratio is 30.43, which means the current valuation is very expensive for SRC.
  • SRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SRC is cheaper than 76.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. SRC is around the same levels.
Industry RankSector Rank
PE 24.18
Fwd PE 30.43
SRC Price Earnings VS Forward Price EarningsSRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SRC's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.94
SRC Per share dataSRC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • SRC has a very decent profitability rating, which may justify a higher PE ratio.
  • SRC's earnings are expected to decrease with -10.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.33%, SRC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 7.13, SRC pays a bit more dividend than its industry peers.
  • SRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 6.33%

5.2 History

  • The dividend of SRC decreases each year by -6.14%.
  • SRC has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of SRC decreased recently.
Dividend Growth(5Y)-6.14%
Div Incr Years1
Div Non Decr Years1
SRC Yearly Dividends per shareSRC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 1 2 3

5.3 Sustainability

  • SRC pays out 154.84% of its income as dividend. This is not a sustainable payout ratio.
  • SRC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP154.84%
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
SRC Yearly Income VS Free CF VS DividendSRC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 200M -200M -400M -600M -800M -1B
SRC Dividend Payout.SRC Dividend Payout, showing the Payout Ratio.SRC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

Spirit Realty Capital Inc

NYSE:SRC (1/22/2024, 8:08:28 PM)

After market: 42.31 0 (0%)

42.31

-0.67 (-1.56%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-02
Earnings (Next)02-22
Inst Owners2.68%
Inst Owner Change0%
Ins Owners1.79%
Ins Owner Change0%
Market Cap5.99B
Revenue(TTM)754.40M
Net Income(TTM)248.00M
Analysts70
Price Target44.35 (4.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.33%
Yearly Dividend2.67
Dividend Growth(5Y)-6.14%
DP154.84%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.33%
Min EPS beat(2)-30.76%
Max EPS beat(2)-1.9%
EPS beat(4)2
Avg EPS beat(4)17.92%
Min EPS beat(4)-30.76%
Max EPS beat(4)80.68%
EPS beat(8)5
Avg EPS beat(8)22.01%
EPS beat(12)7
Avg EPS beat(12)11.62%
EPS beat(16)7
Avg EPS beat(16)-18.12%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)2.27%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)2.27%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)3%
Revenue beat(16)11
Avg Revenue beat(16)2.33%
PT rev (1m)0.77%
PT rev (3m)4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE 24.18
Fwd PE 30.43
P/S 7.94
P/FCF N/A
P/OCF 11.49
P/B 1.33
P/tB 1.54
EV/EBITDA 14.94
EPS(TTM)1.75
EY4.14%
EPS(NY)1.39
Fwd EY3.29%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)3.68
OCFY8.7%
SpS5.33
BVpS31.74
TBVpS27.4
PEG (NY)N/A
PEG (5Y)1.17
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 2.87%
ROE 5.52%
ROCE 3.97%
ROIC 3.14%
ROICexc 3.19%
ROICexgc 3.45%
OM 44.35%
PM (TTM) 32.87%
GM 95.85%
FCFM N/A
ROA(3y)1.89%
ROA(5y)2.17%
ROE(3y)3.49%
ROE(5y)3.92%
ROIC(3y)2.96%
ROIC(5y)3.19%
ROICexc(3y)2.97%
ROICexc(5y)3.2%
ROICexgc(3y)3.26%
ROICexgc(5y)3.54%
ROCE(3y)3.75%
ROCE(5y)4.03%
ROICexgc growth 3Y-6.63%
ROICexgc growth 5Y10.42%
ROICexc growth 3Y-5.64%
ROICexc growth 5Y10.32%
OM growth 3Y-3.89%
OM growth 5Y2.83%
PM growth 3Y6.81%
PM growth 5Y17.76%
GM growth 3Y-0.21%
GM growth 5Y0.51%
F-Score4
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF N/A
Debt/EBITDA 5.9
Cap/Depr 264.97%
Cap/Sales 109.9%
Interest Coverage 2.36
Cash Conversion 80.48%
Profit Quality N/A
Current Ratio 0.61
Quick Ratio 0.58
Altman-Z 0.58
F-Score4
WACC6.93%
ROIC/WACC0.45
Cap/Depr(3y)482.02%
Cap/Depr(5y)473.62%
Cap/Sales(3y)200.85%
Cap/Sales(5y)186.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.41%
EPS 3Y1%
EPS 5Y20.59%
EPS Q2Q%-53.7%
EPS Next Y-16.82%
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
EPS Next 5Y-7.61%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y11.18%
Revenue growth 5Y10.47%
Sales Q2Q%5.74%
Revenue Next Year7.73%
Revenue Next 2Y5.01%
Revenue Next 3Y4.5%
Revenue Next 5Y6.45%
EBIT growth 1Y5.32%
EBIT growth 3Y6.86%
EBIT growth 5Y13.59%
EBIT Next Year104.37%
EBIT Next 3Y29.69%
EBIT Next 5Y24.14%
FCF growth 1Y60.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.99%
OCF growth 3Y12.79%
OCF growth 5Y4.31%

Spirit Realty Capital Inc / SRC FAQ

Can you provide the ChartMill fundamental rating for Spirit Realty Capital Inc?

ChartMill assigns a fundamental rating of 4 / 10 to SRC.


What is the valuation status of Spirit Realty Capital Inc (SRC) stock?

ChartMill assigns a valuation rating of 2 / 10 to Spirit Realty Capital Inc (SRC). This can be considered as Overvalued.


What is the profitability of SRC stock?

Spirit Realty Capital Inc (SRC) has a profitability rating of 8 / 10.


Can you provide the financial health for SRC stock?

The financial health rating of Spirit Realty Capital Inc (SRC) is 1 / 10.


What is the earnings growth outlook for Spirit Realty Capital Inc?

The Earnings per Share (EPS) of Spirit Realty Capital Inc (SRC) is expected to decline by -16.82% in the next year.