STAG INDUSTRIAL INC (STAG) Stock Fundamental Analysis
NYSE:STAG - New York Stock Exchange, Inc. - US85254J1025 - REIT - Currency: USD
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. STAG shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
STAG had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 3.56%, STAG belongs to the top of the industry, outperforming 85.27% of the companies in the same industry.
STAG has a better Return On Equity (7.03%) than 81.40% of its industry peers.
The Return On Invested Capital of STAG (3.33%) is better than 64.34% 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 3.15%.
The last Return On Invested Capital (3.33%) for STAG is above the 3 year average (3.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 7.03% | ||
| ROIC | 3.33% |
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 Profit Margin of 31.04%. This is amongst the best in the industry. STAG outperforms 87.60% of its industry peers.
STAG's Profit Margin has improved in the last couple of years.
The Operating Margin of STAG (35.46%) is better than 74.42% of its industry peers.
STAG's Operating Margin has improved in the last couple of years.
STAG has a Gross Margin of 80.03%. This is in the better half 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 | 35.46% | ||
| PM (TTM) | 31.04% | ||
| GM | 80.03% |
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
STAG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STAG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STAG has more shares outstanding
Compared to 1 year ago, STAG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.18, we must say that STAG is in the distress zone and has some risk of bankruptcy.
STAG has a better Altman-Z score (1.18) than 82.95% of its industry peers.
STAG has a Debt/Equity ratio of 0.87. This is a neutral value indicating STAG is somewhat dependend on debt financing.
STAG has a Debt to Equity ratio of 0.87. This is in the better half of the industry: STAG outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.46
WACC7.27%
2.3 Liquidity
A Current Ratio of 0.63 indicates that STAG may have some problems paying its short term obligations.
With a Current ratio value of 0.63, STAG is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
STAG has a Quick Ratio of 0.63. 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 0.63. This is in the lower half of the industry: STAG underperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
STAG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.00%, which is quite impressive.
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 8.81% 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)28%
EPS 3Y-4.31%
EPS 5Y23.83%
EPS Q2Q%145%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y10.93%
Revenue growth 5Y13.58%
Sales Q2Q%9.58%
3.2 Future
Based on estimates for the next years, STAG will show a very strong growth in Earnings Per Share. The EPS will grow by 33.14% on average per year.
STAG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.97% yearly.
EPS Next Y9.47%
EPS Next 2Y3.02%
EPS Next 3Y15.87%
EPS Next 5Y33.14%
Revenue Next Year9.07%
Revenue Next 2Y8.98%
Revenue Next 3Y11.48%
Revenue Next 5Y9.97%
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 27.72, which means the current valuation is very expensive for STAG.
Compared to the rest of the industry, the Price/Earnings ratio of STAG indicates a somewhat cheap valuation: STAG is cheaper than 70.54% of the companies listed in the same industry.
STAG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
Based on the Price/Forward Earnings ratio of 33.77, the valuation of STAG can be described as expensive.
STAG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STAG is cheaper than 71.32% of the companies in the same industry.
STAG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.72 | ||
| Fwd PE | 33.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STAG is valued a bit more expensive than the industry average as 69.77% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of STAG may justify a higher PE ratio.
A more expensive valuation may be justified as STAG's earnings are expected to grow with 15.87% in the coming years.
PEG (NY)2.93
PEG (5Y)1.16
EPS Next 2Y3.02%
EPS Next 3Y15.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, STAG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.93, STAG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, STAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
The dividend of STAG has a limited annual growth rate of 0.08%.
STAG has been paying a dividend for at least 10 years, so it has 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
STAG pays out 113.71% 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.
DP113.71%
EPS Next 2Y3.02%
EPS Next 3Y15.87%
35.48
+0.56 (+1.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.94%
Inst Owner Change3.28%
Ins Owners0.13%
Ins Owner Change0.67%
Market Cap6.62B
Analysts75.56
Price Target38.57 (8.71%)
Short Float %2.41%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend1.49
Dividend Growth(5Y)0.08%
DP113.71%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)92.34%
Min EPS beat(2)31.85%
Max EPS beat(2)152.84%
EPS beat(4)4
Avg EPS beat(4)64.4%
Min EPS beat(4)23.53%
Max EPS beat(4)152.84%
EPS beat(8)8
Avg EPS beat(8)50.31%
EPS beat(12)11
Avg EPS beat(12)49.53%
EPS beat(16)15
Avg EPS beat(16)65.86%
Revenue beat(2)2
Avg Revenue beat(2)0.47%
Min Revenue beat(2)0.11%
Max Revenue beat(2)0.83%
Revenue beat(4)2
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)0.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)4
Avg Revenue beat(12)-0.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.53%
PT rev (1m)-3.48%
PT rev (3m)-3.26%
EPS NQ rev (1m)19.76%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)18.06%
EPS NY rev (3m)15.91%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.72 | ||
| Fwd PE | 33.77 | ||
| P/S | 8.43 | ||
| P/FCF | N/A | ||
| P/OCF | 14.44 | ||
| P/B | 1.91 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 16.62 |
EPS(TTM)1.28
EY3.61%
EPS(NY)1.05
Fwd EY2.96%
FCF(TTM)-2.22
FCFYN/A
OCF(TTM)2.46
OCFY6.93%
SpS4.21
BVpS18.58
TBVpS18.58
PEG (NY)2.93
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 7.03% | ||
| ROCE | 4.21% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.35% | ||
| OM | 35.46% | ||
| PM (TTM) | 31.04% | ||
| GM | 80.03% | ||
| 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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.28 | ||
| Cap/Depr | 295.17% | ||
| Cap/Sales | 111.07% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 79.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.18 |
F-Score5
WACC7.27%
ROIC/WACC0.46
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)28%
EPS 3Y-4.31%
EPS 5Y23.83%
EPS Q2Q%145%
EPS Next Y9.47%
EPS Next 2Y3.02%
EPS Next 3Y15.87%
EPS Next 5Y33.14%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y10.93%
Revenue growth 5Y13.58%
Sales Q2Q%9.58%
Revenue Next Year9.07%
Revenue Next 2Y8.98%
Revenue Next 3Y11.48%
Revenue Next 5Y9.97%
EBIT growth 1Y12.3%
EBIT growth 3Y17.78%
EBIT growth 5Y20.02%
EBIT Next Year83.14%
EBIT Next 3Y30.09%
EBIT Next 5Y25.77%
FCF growth 1Y-848.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.01%
OCF growth 3Y11.04%
OCF growth 5Y14.55%