STAG INDUSTRIAL INC (STAG)

US85254J1025 - REIT

38.44  +0.35 (+0.92%)

After market: 38.44 0 (0%)

Fundamental Rating

4

STAG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. STAG has an excellent profitability rating, but there are concerns on its financial health. STAG is valied quite expensively at the moment, while it does show a decent growth rate.



7

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.
Each year in the past 5 years STAG has been profitable.
STAG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

STAG has a better Return On Assets (3.07%) than 77.42% of its industry peers.
STAG has a better Return On Equity (5.71%) than 74.19% of its industry peers.
STAG has a Return On Invested Capital of 3.08%. This is comparable to the rest of the industry: STAG outperforms 59.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STAG is in line with the industry average of 2.93%.
The 3 year average ROIC (2.69%) for STAG is below the current ROIC(3.08%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.07%
ROE 5.71%
ROIC 3.08%
ROA(3y)3.06%
ROA(5y)2.88%
ROE(3y)5.54%
ROE(5y)5.15%
ROIC(3y)2.69%
ROIC(5y)2.51%

1.3 Margins

The Profit Margin of STAG (27.22%) is better than 81.45% of its industry peers.
In the last couple of years the Profit Margin of STAG has grown nicely.
STAG has a better Operating Margin (33.56%) than 74.19% of its industry peers.
STAG's Operating Margin has improved in the last couple of years.
The Gross Margin of STAG (80.62%) is better than 79.03% of its industry peers.
In the last couple of years the Gross Margin of STAG has remained more or less at the same level.
Industry RankSector Rank
OM 33.56%
PM (TTM) 27.22%
GM 80.62%
OM growth 3Y5.73%
OM growth 5Y8.32%
PM growth 3Y-12.55%
PM growth 5Y3%
GM growth 3Y-0.49%
GM growth 5Y0.07%

3

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

STAG has an Altman-Z score of 1.48. 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 (1.48) is better than 87.90% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that STAG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, STAG is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF N/A
Altman-Z 1.48
ROIC/WACC0.43
WACC7.21%

2.3 Liquidity

A Current Ratio of 1.25 indicates that STAG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, STAG perfoms like the industry average, outperforming 54.03% of the companies in the same industry.
STAG has a Quick Ratio of 1.25. This is a normal value and indicates that STAG is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, STAG perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25

4

3. Growth

3.1 Past

STAG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.00%, which is quite good.
STAG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.67% yearly.
The Revenue has been growing slightly by 7.70% in the past year.
The Revenue has been growing by 15.06% on average over the past years. This is quite good.
EPS 1Y (TTM)8%
EPS 3Y-6.47%
EPS 5Y6.67%
EPS growth Q2Q35.29%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y13.56%
Revenue growth 5Y15.06%
Revenue growth Q2Q7.64%

3.2 Future

STAG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.46% yearly.
Based on estimates for the next years, STAG will show a quite strong growth in Revenue. The Revenue will grow by 8.92% on average per year.
EPS Next Y-27.28%
EPS Next 2Y-11.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.03%
Revenue Next 2Y5.59%
Revenue Next 3Y8.92%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 35.59, STAG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STAG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.48, STAG is valued a bit more expensive.
STAG is valuated quite expensively with a Price/Forward Earnings ratio of 48.94.
STAG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STAG is cheaper than 62.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, STAG is valued quite expensively.
Industry RankSector Rank
PE 35.59
Fwd PE 48.94

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, STAG is valued a bit more expensive than the industry average as 76.61% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.59

4.3 Compensation for Growth

STAG has a very decent profitability rating, which may justify a higher PE ratio.
STAG's earnings are expected to decrease with -11.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.34
EPS Next 2Y-11.46%
EPS Next 3YN/A

4

5. Dividend

5.1 Amount

STAG has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.72, STAG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, STAG pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.87%

5.2 History

The dividend of STAG decreases each year by -0.48%.
STAG has been paying a dividend for at least 10 years, so it has a reliable track record.
STAG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.48%
Div Incr Years12
Div Non Decr Years12

5.3 Sustainability

STAG pays out 138.87% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of STAG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP138.87%
EPS Next 2Y-11.46%
EPS Next 3YN/A

STAG INDUSTRIAL INC

NYSE:STAG (3/28/2024, 8:04:01 PM)

After market: 38.44 0 (0%)

38.44

+0.35 (+0.92%)

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 Cap6.99B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.87%
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 35.59
Fwd PE 48.94
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)5.34
Profitability
Industry RankSector Rank
ROA 3.07%
ROE 5.71%
ROCE
ROIC
ROICexc
ROICexgc
OM 33.56%
PM (TTM) 27.22%
GM 80.62%
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 Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.25
Quick Ratio 1.25
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)
Growth
EPS 1Y (TTM)8%
EPS 3Y-6.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y-27.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.7%
Revenue growth 3Y13.56%
Revenue growth 5Y
Revenue growth 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