STAG INDUSTRIAL INC (STAG) Stock Fundamental Analysis
NYSE:STAG - US85254J1025 - REIT
36.75 USD
+1.17 (+3.29%)
36.412 USD
-0.34 (-0.92%)
We assign a fundamental rating of 5 out of 10 to STAG. STAG was compared to 129 industry peers in the Diversified REITs industry. STAG has an excellent profitability rating, but there are concerns on its financial health. STAG is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year STAG was profitable.
In the past year STAG had a positive cash flow from operations.
STAG had positive earnings in each of the past 5 years.
In the past 5 years STAG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.43%, STAG belongs to the best of the industry, outperforming 80.62% of the companies in the same industry.
The Return On Equity of STAG (6.79%) is better than 79.07% of its industry peers.
STAG has a Return On Invested Capital of 3.52%. This is in the better half of the industry: STAG outperforms 67.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STAG is in line with the industry average of 3.07%.
The last Return On Invested Capital (3.52%) for STAG is above the 3 year average (3.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 6.79% | ||
| ROIC | 3.52% |
ROA(3y)2.9%
ROA(5y)3.23%
ROE(3y)5.48%
ROE(5y)5.87%
ROIC(3y)3%
ROIC(5y)2.73%
1.3 Margins
STAG has a better Profit Margin (29.14%) than 83.72% of its industry peers.
In the last couple of years the Profit Margin of STAG has grown nicely.
STAG has a better Operating Margin (36.58%) than 79.07% of its industry peers.
STAG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.12%, STAG is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
In the last couple of years the Gross Margin of STAG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.58% | ||
| PM (TTM) | 29.14% | ||
| GM | 80.12% |
OM growth 3Y6.18%
OM growth 5Y5.67%
PM growth 3Y-9.72%
PM growth 5Y17.96%
GM growth 3Y-0.39%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STAG is destroying value.
STAG has more shares outstanding than it did 1 year ago.
STAG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STAG has a worse debt to assets ratio.
2.2 Solvency
STAG has an Altman-Z score of 1.21. This is a bad value and indicates that STAG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of STAG (1.21) is better than 84.50% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that STAG is somewhat dependend on debt financing.
STAG has a better Debt to Equity ratio (0.88) than 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC0.49
WACC7.24%
2.3 Liquidity
A Current Ratio of 0.67 indicates that STAG may have some problems paying its short term obligations.
STAG has a Current ratio of 0.67. This is in the lower half of the industry: STAG underperforms 69.77% of its industry peers.
STAG has a Quick Ratio of 0.67. This is a bad value and indicates that STAG is not financially healthy enough and could expect problems in meeting its short term obligations.
STAG has a Quick ratio of 0.67. This is in the lower half of the industry: STAG underperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
STAG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.42%, which is quite good.
Measured over the past years, STAG shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.83% on average per year.
STAG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.56%.
The Revenue has been growing by 13.58% on average over the past years. This is quite good.
EPS 1Y (TTM)19.42%
EPS 3Y-4.31%
EPS 5Y23.83%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y10.93%
Revenue growth 5Y13.58%
Sales Q2Q%11.25%
3.2 Future
STAG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.47% yearly.
Based on estimates for the next years, STAG will show a quite strong growth in Revenue. The Revenue will grow by 9.71% on average per year.
EPS Next Y17.11%
EPS Next 2Y-0.72%
EPS Next 3Y12.72%
EPS Next 5Y33.47%
Revenue Next Year10.14%
Revenue Next 2Y9.75%
Revenue Next 3Y7.37%
Revenue Next 5Y9.71%
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 accelerating.
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
Based on the Price/Earnings ratio of 29.88, the valuation of STAG can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STAG indicates a somewhat cheap valuation: STAG is cheaper than 68.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STAG to the average of the S&P500 Index (27.24), we can say STAG is valued inline with the index average.
A Price/Forward Earnings ratio of 37.66 indicates a quite expensive valuation of STAG.
68.22% of the companies in the same industry are more expensive than STAG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of STAG to the average of the S&P500 Index (35.82), we can say STAG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 37.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STAG indicates a slightly more expensive valuation: STAG is more expensive than 68.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of STAG may justify a higher PE ratio.
STAG's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.75
PEG (5Y)1.25
EPS Next 2Y-0.72%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.28%, STAG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.54, STAG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, STAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
The dividend of STAG has a limited annual growth rate of 0.08%.
STAG has paid a dividend for at least 10 years, which is a reliable track record.
STAG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.08%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
119.36% of the earnings are spent on dividend by STAG. This is not a sustainable payout ratio.
STAG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP119.36%
EPS Next 2Y-0.72%
EPS Next 3Y12.72%
36.75
+1.17 (+3.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.05%
Inst Owner Change2.16%
Ins Owners0.12%
Ins Owner Change0.55%
Market Cap6.86B
Analysts74.12
Price Target39.78 (8.24%)
Short Float %4.18%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend1.49
Dividend Growth(5Y)0.08%
DP119.36%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)86.58%
Min EPS beat(2)20.32%
Max EPS beat(2)152.84%
EPS beat(4)4
Avg EPS beat(4)57.13%
Min EPS beat(4)20.32%
Max EPS beat(4)152.84%
EPS beat(8)8
Avg EPS beat(8)44.44%
EPS beat(12)11
Avg EPS beat(12)50.37%
EPS beat(16)15
Avg EPS beat(16)63.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)0.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.59%
Revenue beat(12)4
Avg Revenue beat(12)-0.67%
Revenue beat(16)5
Avg Revenue beat(16)-0.7%
PT rev (1m)2.39%
PT rev (3m)3.12%
EPS NQ rev (1m)6.35%
EPS NQ rev (3m)11.67%
EPS NY rev (1m)0%
EPS NY rev (3m)6.98%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 37.66 | ||
| P/S | 8.54 | ||
| P/FCF | N/A | ||
| P/OCF | 15.3 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 16.43 |
EPS(TTM)1.23
EY3.35%
EPS(NY)0.98
Fwd EY2.66%
FCF(TTM)-1.33
FCFYN/A
OCF(TTM)2.4
OCFY6.53%
SpS4.3
BVpS18.45
TBVpS18.45
PEG (NY)1.75
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 6.79% | ||
| ROCE | 4.46% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 3.54% | ||
| OM | 36.58% | ||
| PM (TTM) | 29.14% | ||
| GM | 80.12% | ||
| FCFM | N/A |
ROA(3y)2.9%
ROA(5y)3.23%
ROE(3y)5.48%
ROE(5y)5.87%
ROIC(3y)3%
ROIC(5y)2.73%
ROICexc(3y)3.01%
ROICexc(5y)2.74%
ROICexgc(3y)3.04%
ROICexgc(5y)2.76%
ROCE(3y)3.8%
ROCE(5y)3.46%
ROICexcg growth 3Y12.23%
ROICexcg growth 5Y9.09%
ROICexc growth 3Y12.06%
ROICexc growth 5Y8.97%
OM growth 3Y6.18%
OM growth 5Y5.67%
PM growth 3Y-9.72%
PM growth 5Y17.96%
GM growth 3Y-0.39%
GM growth 5Y-0.41%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 236.42% | ||
| Cap/Sales | 86.75% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 76.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.21 |
F-Score5
WACC7.24%
ROIC/WACC0.49
Cap/Depr(3y)219.87%
Cap/Depr(5y)327.35%
Cap/Sales(3y)87.15%
Cap/Sales(5y)136.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.42%
EPS 3Y-4.31%
EPS 5Y23.83%
EPS Q2Q%-15.62%
EPS Next Y17.11%
EPS Next 2Y-0.72%
EPS Next 3Y12.72%
EPS Next 5Y33.47%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y10.93%
Revenue growth 5Y13.58%
Sales Q2Q%11.25%
Revenue Next Year10.14%
Revenue Next 2Y9.75%
Revenue Next 3Y7.37%
Revenue Next 5Y9.71%
EBIT growth 1Y15.43%
EBIT growth 3Y17.78%
EBIT growth 5Y20.02%
EBIT Next Year84.8%
EBIT Next 3Y30.2%
EBIT Next 5Y25.47%
FCF growth 1Y-390.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.1%
OCF growth 3Y11.04%
OCF growth 5Y14.55%