STAG INDUSTRIAL INC (STAG) Stock Fundamental Analysis
USA - NYSE:STAG - US85254J1025 - REIT
36.24 USD
+0.34 (+0.95%)
36.24 USD
0 (0%)
Overall STAG gets a fundamental rating of 5 out of 10. We evaluated STAG against 129 industry peers in the Diversified REITs industry. While STAG has a great profitability rating, there are quite some concerns on its financial health. STAG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year STAG was profitable.
STAG had a positive operating cash flow in the past year.
Each year in the past 5 years STAG has been profitable.
In the past 5 years STAG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.43%, STAG belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
STAG has a Return On Equity of 6.79%. This is in the better half of the industry: STAG outperforms 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 66.67% of its industry peers.
STAG had an Average Return On Invested Capital over the past 3 years of 3.00%. This is in line with the industry average of 3.04%.
The 3 year average ROIC (3.00%) for STAG is below the current ROIC(3.52%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 29.14%, STAG belongs to the best of the industry, outperforming 84.50% of the companies in the same industry.
STAG's Profit Margin has improved in the last couple of years.
The Operating Margin of STAG (36.58%) is better than 75.97% of its industry peers.
STAG's Operating Margin has improved in the last couple of years.
STAG's Gross Margin of 80.12% is fine compared to the rest of the industry. STAG outperforms 79.84% of its industry peers.
STAG's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STAG is destroying value.
STAG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STAG has more shares outstanding
The debt/assets ratio for STAG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that STAG is in the distress zone and has some risk of bankruptcy.
STAG's Altman-Z score of 1.24 is amongst the best of the industry. STAG outperforms 86.05% of its industry peers.
STAG has a Debt/Equity ratio of 0.88. This is a neutral value indicating STAG is somewhat dependend on debt financing.
STAG's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. STAG outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.5
WACC7.08%
2.3 Liquidity
STAG has a Current 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 Current ratio of 0.67. This is in the lower half of the industry: STAG underperforms 70.54% 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 worse Quick ratio (0.67) than 68.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.42% over the past year.
The Earnings Per Share has been growing by 23.83% on average over the past years. This is a very strong growth
Looking at the last year, STAG shows a quite strong growth in Revenue. The Revenue has grown by 8.56% in the last year.
STAG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.58% yearly.
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.
The Revenue is expected to grow by 9.71% on average over the next years. This is quite good.
EPS Next Y22.26%
EPS Next 2Y-2.29%
EPS Next 3Y4.1%
EPS Next 5Y33.47%
Revenue Next Year9.96%
Revenue Next 2Y8.74%
Revenue Next 3Y5.75%
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
The Price/Earnings ratio is 29.46, which means the current valuation is very expensive for STAG.
STAG's Price/Earnings ratio is a bit cheaper when compared to the industry. STAG is cheaper than 65.89% of the companies in the same industry.
STAG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
Based on the Price/Forward Earnings ratio of 38.34, the valuation of STAG can be described as expensive.
Based on the Price/Forward Earnings ratio, STAG is valued a bit cheaper than 65.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STAG to the average of the S&P500 Index (23.32), we can say STAG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 38.34 |
4.2 Price Multiples
67.44% of the companies in the same industry are cheaper than STAG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
STAG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STAG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)1.24
EPS Next 2Y-2.29%
EPS Next 3Y4.1%
5. Dividend
5.1 Amount
STAG has a Yearly Dividend Yield of 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 6.70, STAG is paying slightly less dividend.
STAG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.08%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
STAG pays out 119.36% of its income as dividend. 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-2.29%
EPS Next 3Y4.1%
36.24
+0.34 (+0.95%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.23%
Inst Owner Change2.16%
Ins Owners0.12%
Ins Owner Change1.53%
Market Cap6.77B
Analysts74.12
Price Target39.78 (9.77%)
Short Float %4.23%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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)0%
PT rev (3m)2.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 38.34 | ||
| P/S | 8.42 | ||
| P/FCF | N/A | ||
| P/OCF | 15.09 | ||
| P/B | 1.96 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 16.64 |
EPS(TTM)1.23
EY3.39%
EPS(NY)0.95
Fwd EY2.61%
FCF(TTM)-1.33
FCFYN/A
OCF(TTM)2.4
OCFY6.63%
SpS4.3
BVpS18.45
TBVpS18.45
PEG (NY)1.32
PEG (5Y)1.24
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 | 1.24 |
F-Score5
WACC7.08%
ROIC/WACC0.5
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 Y22.26%
EPS Next 2Y-2.29%
EPS Next 3Y4.1%
EPS Next 5Y33.47%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y10.93%
Revenue growth 5Y13.58%
Sales Q2Q%11.25%
Revenue Next Year9.96%
Revenue Next 2Y8.74%
Revenue Next 3Y5.75%
Revenue Next 5Y9.71%
EBIT growth 1Y15.43%
EBIT growth 3Y17.78%
EBIT growth 5Y20.02%
EBIT Next Year85.45%
EBIT Next 3Y30.14%
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%