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STORE CAPITAL CORP (STOR) Stock Fundamental Analysis

USA - NYSE:STOR - US8621211007 - REIT

32.21 USD
0 (0%)
Last: 2/2/2023, 8:25:39 PM
32.22 USD
+0.01 (+0.03%)
After Hours: 2/2/2023, 8:25:39 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to STOR. STOR was compared to 130 industry peers in the Diversified REITs industry. While STOR is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, STOR is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year STOR was profitable.
STOR had a positive operating cash flow in the past year.
STOR Yearly Net Income VS EBIT VS OCF VS FCFSTOR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 500M -500M -1B

1.2 Ratios

The Return On Assets of STOR (3.05%) is better than 64.86% of its industry peers.
STOR has a Return On Equity (6.00%) which is in line with its industry peers.
STOR has a better Return On Invested Capital (3.88%) than 76.22% of its industry peers.
STOR had an Average Return On Invested Capital over the past 3 years of 3.62%. This is in line with the industry average of 3.05%.
The 3 year average ROIC (3.62%) for STOR is below the current ROIC(3.88%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.05%
ROE 6%
ROIC 3.88%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.62%
ROIC(5y)N/A
STOR Yearly ROA, ROE, ROICSTOR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2 4 6

1.3 Margins

STOR has a Profit Margin of 36.21%. This is in the better half of the industry: STOR outperforms 78.92% of its industry peers.
In the last couple of years the Profit Margin of STOR has remained more or less at the same level.
STOR has a Operating Margin of 56.56%. This is amongst the best in the industry. STOR outperforms 94.05% of its industry peers.
STOR's Operating Margin has declined in the last couple of years.
The Gross Margin of STOR (98.30%) is better than 98.38% of its industry peers.
In the last couple of years the Gross Margin of STOR has remained more or less at the same level.
Industry RankSector Rank
OM 56.56%
PM (TTM) 36.21%
GM 98.3%
OM growth 3Y-2.49%
OM growth 5Y-1.76%
PM growth 3Y-5.13%
PM growth 5Y0.94%
GM growth 3Y-0.52%
GM growth 5Y-0.26%
STOR Yearly Profit, Operating, Gross MarginsSTOR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 20 40 60 80

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STOR is destroying value.
STOR has more shares outstanding than it did 1 year ago.
STOR has a worse debt/assets ratio than last year.
STOR Yearly Shares OutstandingSTOR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M
STOR Yearly Total Debt VS Total AssetsSTOR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

2.2 Solvency

STOR has an Altman-Z score of 1.18. This is a bad value and indicates that STOR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.18, STOR is in the better half of the industry, outperforming 71.89% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that STOR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.91, STOR is doing good in the industry, outperforming 60.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF N/A
Altman-Z 1.18
ROIC/WACC0.5
WACC7.77%
STOR Yearly LT Debt VS Equity VS FCFSTOR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 2B 4B

2.3 Liquidity

A Current Ratio of 0.15 indicates that STOR may have some problems paying its short term obligations.
STOR has a worse Current ratio (0.15) than 91.35% of its industry peers.
STOR has a Quick Ratio of 0.15. This is a bad value and indicates that STOR is not financially healthy enough and could expect problems in meeting its short term obligations.
STOR has a worse Quick ratio (0.15) than 89.73% of its industry peers.
Industry RankSector Rank
Current Ratio 0.15
Quick Ratio 0.15
STOR Yearly Current Assets VS Current LiabilitesSTOR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 30.77% over the past year.
Measured over the past 5 years, STOR shows a small growth in Earnings Per Share. The EPS has been growing by 3.30% on average per year.
Looking at the last year, STOR shows a quite strong growth in Revenue. The Revenue has grown by 18.66% in the last year.
STOR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.77% yearly.
EPS 1Y (TTM)30.77%
EPS 3Y-1.92%
EPS 5Y3.3%
EPS Q2Q%-3.57%
Revenue 1Y (TTM)18.66%
Revenue growth 3Y13.11%
Revenue growth 5Y15.77%
Sales Q2Q%15.78%

3.2 Future

STOR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.47% yearly.
STOR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.06% yearly.
EPS Next Y21.09%
EPS Next 2Y8.84%
EPS Next 3Y7.56%
EPS Next 5Y4.47%
Revenue Next Year16.47%
Revenue Next 2Y11.8%
Revenue Next 3Y9.82%
Revenue Next 5Y13.06%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
STOR Yearly Revenue VS EstimatesSTOR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B
STOR Yearly EPS VS EstimatesSTOR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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2

4. Valuation

4.1 Price/Earnings Ratio

STOR is valuated quite expensively with a Price/Earnings ratio of 27.07.
Compared to the rest of the industry, the Price/Earnings ratio of STOR indicates a somewhat cheap valuation: STOR is cheaper than 65.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.32. STOR is around the same levels.
The Price/Forward Earnings ratio is 27.19, which means the current valuation is very expensive for STOR.
Based on the Price/Forward Earnings ratio, STOR is valued a bit cheaper than 79.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.89, STOR is valued at the same level.
Industry RankSector Rank
PE 27.07
Fwd PE 27.19
STOR Price Earnings VS Forward Price EarningsSTOR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as STOR.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.41
STOR Per share dataSTOR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.28
PEG (5Y)8.19
EPS Next 2Y8.84%
EPS Next 3Y7.56%

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5

5. Dividend

5.1 Amount

STOR has a Yearly Dividend Yield of 5.10%, which is a nice return.
Compared to an average industry Dividend Yield of 6.38, STOR pays a bit more dividend than its industry peers.
STOR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
Industry RankSector Rank
Dividend Yield 5.1%

5.2 History

The dividend of STOR has a limited annual growth rate of 5.75%.
STOR has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)5.75%
Div Incr Years0
Div Non Decr Years0
STOR Yearly Dividends per shareSTOR Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 0.5 1

5.3 Sustainability

STOR pays out 133.45% of its income as dividend. This is not a sustainable payout ratio.
The dividend of STOR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP133.45%
EPS Next 2Y8.84%
EPS Next 3Y7.56%
STOR Yearly Income VS Free CF VS DividendSTOR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 0 -500M -1B
STOR Dividend Payout.STOR Dividend Payout, showing the Payout Ratio.STOR Dividend Payout.PayoutRetained Earnings

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STORE CAPITAL CORP

NYSE:STOR (2/2/2023, 8:25:39 PM)

After market: 32.22 +0.01 (+0.03%)

32.21

0 (0%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-03 2022-11-03/bmo
Earnings (Next)02-21 2023-02-21/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change0%
Market Cap9.11B
Analysts54.12
Price Target32.3 (0.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.1%
Yearly Dividend1.49
Dividend Growth(5Y)5.75%
DP133.45%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.66%
Min EPS beat(2)-5.46%
Max EPS beat(2)14.78%
EPS beat(4)3
Avg EPS beat(4)9.41%
Min EPS beat(4)-5.46%
Max EPS beat(4)20.66%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)6.91%
Min Revenue beat(2)6.25%
Max Revenue beat(2)7.56%
Revenue beat(4)4
Avg Revenue beat(4)8.39%
Min Revenue beat(4)6.25%
Max Revenue beat(4)10.76%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.48%
PT rev (3m)2.81%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 27.07
Fwd PE 27.19
P/S 10.28
P/FCF N/A
P/OCF 13.59
P/B 1.7
P/tB 1.7
EV/EBITDA 17.41
EPS(TTM)1.19
EY3.69%
EPS(NY)1.18
Fwd EY3.68%
FCF(TTM)-3.02
FCFYN/A
OCF(TTM)2.37
OCFY7.36%
SpS3.13
BVpS18.91
TBVpS18.91
PEG (NY)1.28
PEG (5Y)8.19
Profitability
Industry RankSector Rank
ROA 3.05%
ROE 6%
ROCE N/A
ROIC 3.88%
ROICexc 3.9%
ROICexgc 3.96%
OM 56.56%
PM (TTM) 36.21%
GM 98.3%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.62%
ROIC(5y)N/A
ROICexc(3y)3.58%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-0.5%
ROICexcg growth 5Y-0.7%
ROICexc growth 3Y-0.58%
ROICexc growth 5Y-0.69%
OM growth 3Y-2.49%
OM growth 5Y-1.76%
PM growth 3Y-5.13%
PM growth 5Y0.94%
GM growth 3Y-0.52%
GM growth 5Y-0.26%
F-Score7
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF N/A
Debt/EBITDA 6.07
Cap/Depr 511.87%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.15
Quick Ratio 0.15
Altman-Z 1.18
F-Score7
WACC7.77%
ROIC/WACC0.5
Cap/Depr(3y)516.79%
Cap/Depr(5y)654.4%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.77%
EPS 3Y-1.92%
EPS 5Y3.3%
EPS Q2Q%-3.57%
EPS Next Y21.09%
EPS Next 2Y8.84%
EPS Next 3Y7.56%
EPS Next 5Y4.47%
Revenue 1Y (TTM)18.66%
Revenue growth 3Y13.11%
Revenue growth 5Y15.77%
Sales Q2Q%15.78%
Revenue Next Year16.47%
Revenue Next 2Y11.8%
Revenue Next 3Y9.82%
Revenue Next 5Y13.06%
EBIT growth 1Y27.04%
EBIT growth 3Y10.3%
EBIT growth 5Y13.74%
EBIT Next Year103.06%
EBIT Next 3Y35.52%
EBIT Next 5Y28.17%
FCF growth 1Y-49.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.04%
OCF growth 3Y14.2%
OCF growth 5Y18.82%