STORE CAPITAL CORP (STOR) Stock Fundamental Analysis
NYSE:STOR - New York Stock Exchange, Inc. - US8621211007 - REIT - Currency: USD
Taking everything into account, STOR scores 4 out of 10 in our fundamental rating. STOR was compared to 129 industry peers in the Diversified REITs industry. STOR has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, STOR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year STOR was profitable.
In the past year STOR had a positive cash flow from operations.
1.2 Ratios
STOR has a Return On Assets of 3.05%. This is in the better half of the industry: STOR outperforms 64.86% of its industry peers.
STOR has a Return On Equity (6.00%) which is in line with its industry peers.
STOR's Return On Invested Capital of 3.88% is fine compared to the rest of the industry. STOR outperforms 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 3.07%.
The last Return On Invested Capital (3.88%) for STOR is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 36.21%, STOR is in the better half of the industry, outperforming 78.92% of the companies in the same industry.
STOR's Profit Margin has been stable in the last couple of years.
STOR's Operating Margin of 56.56% is amongst the best of the industry. STOR outperforms 94.05% of its industry peers.
In the last couple of years the Operating Margin of STOR has declined.
STOR has a Gross Margin of 98.30%. This is amongst the best in the industry. STOR outperforms 98.38% of its industry peers.
STOR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STOR is destroying value.
The number of shares outstanding for STOR has been increased compared to 1 year ago.
The debt/assets ratio for STOR is higher compared to a year ago.
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.
The Debt to Equity ratio of STOR (0.91) is better than 60.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.5
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.15 indicates that STOR may have some problems paying its short term obligations.
The Current ratio of STOR (0.15) is worse 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.
The Quick ratio of STOR (0.15) is worse than 89.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.77% over the past year.
The Earnings Per Share has been growing slightly by 3.30% on average over the past years.
STOR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.66%.
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
Based on estimates for the next years, STOR will show a small growth in Earnings Per Share. The EPS will grow by 4.47% on average per year.
The Revenue is expected to grow by 13.06% on average over the next years. This is quite good.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.07, STOR can be considered very expensive at the moment.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.76, STOR is valued at the same level.
Based on the Price/Forward Earnings ratio of 27.19, the valuation of STOR can be described as expensive.
79.46% of the companies in the same industry are more expensive than STOR, based on the Price/Forward Earnings ratio.
STOR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 27.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STOR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.41 |
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%
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 6.54, STOR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, STOR pays a better dividend.
| Industry Rank | Sector 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
5.3 Sustainability
133.45% of the earnings are spent on dividend by STOR. 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%
32.21
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%