NNN REIT INC (NNN)
US6374171063 - REIT
Taking everything into account, NNN scores 6 out of 10 in our fundamental rating. NNN was compared to 129 industry peers in the Diversified REITs industry. NNN has an excellent profitability rating, but there are some minor concerns on its financial health. NNN is not valued too expensively and it also shows a decent growth rate. Finally NNN also has an excellent dividend rating. This makes NNN very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
NNN had positive earnings in the past year.
NNN had a positive operating cash flow in the past year.
NNN had positive earnings in each of the past 5 years.
In the past 5 years NNN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, NNN belongs to the top of the industry, outperforming 93.70% of the companies in the same industry.
The Return On Equity of NNN (11.20%) is better than 91.34% of its industry peers.
NNN has a Return On Invested Capital of 6.07%. This is amongst the best in the industry. NNN outperforms 96.06% of its industry peers.
NNN had an Average Return On Invested Capital over the past 3 years of 4.67%. This is in line with the industry average of 3.04%.
The 3 year average ROIC (4.67%) for NNN is below the current ROIC(6.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 11.2% | ||
| ROIC | 6.07% |
ROA(3y)4.01%
ROA(5y)3.65%
ROE(3y)8.09%
ROE(5y)7.02%
ROIC(3y)4.67%
ROIC(5y)4.51%
1.3 Margins
NNN has a Profit Margin of 45.19%. This is amongst the best in the industry. NNN outperforms 93.70% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
NNN has a better Operating Margin (62.82%) than 97.64% of its industry peers.
In the last couple of years the Operating Margin of NNN has remained more or less at the same level.
NNN has a Gross Margin of 96.62%. This is amongst the best in the industry. NNN outperforms 96.85% of its industry peers.
NNN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 62.82% | ||
| PM (TTM) | 45.19% | ||
| GM | 96.62% |
OM growth 3Y1.27%
OM growth 5Y0.01%
PM growth 3Y14.14%
PM growth 5Y2.72%
GM growth 3Y0.3%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
NNN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NNN has been increased compared to 1 year ago.
Compared to 5 years ago, NNN has more shares outstanding
Compared to 1 year ago, NNN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that NNN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NNN (1.33) is better than 83.46% of its industry peers.
The Debt to FCF ratio of NNN is 254.26, which is on the high side as it means it would take NNN, 254.26 years of fcf income to pay off all of its debts.
NNN has a Debt to FCF ratio (254.26) which is in line with its industry peers.
NNN has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
NNN has a Debt to Equity ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 254.26 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.88
WACC6.92%
2.3 Liquidity
NNN has a Current Ratio of 2.33. This indicates that NNN is financially healthy and has no problem in meeting its short term obligations.
NNN's Current ratio of 2.33 is amongst the best of the industry. NNN outperforms 80.31% of its industry peers.
A Quick Ratio of 2.33 indicates that NNN has no problem at all paying its short term obligations.
NNN has a Quick ratio of 2.33. This is amongst the best in the industry. NNN outperforms 81.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.89% over the past year.
The Earnings Per Share has been growing slightly by 3.95% on average over the past years.
Looking at the last year, NNN shows a very strong growth in Revenue. The Revenue has grown by 33.58%.
NNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
EPS 1Y (TTM)14.89%
EPS 3Y17.54%
EPS 5Y3.95%
EPS Q2Q%-10.26%
Revenue 1Y (TTM)33.58%
Revenue growth 3Y7.82%
Revenue growth 5Y5.87%
Sales Q2Q%6.55%
3.2 Future
NNN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.08% yearly.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y-2.66%
EPS Next 2Y-2.16%
EPS Next 3Y0.08%
EPS Next 5YN/A
Revenue Next Year5.9%
Revenue Next 2Y5.14%
Revenue Next 3Y5.02%
Revenue Next 5Y4.89%
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 decreasing.
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 20.06, NNN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NNN indicates a rather cheap valuation: NNN is cheaper than 81.10% of the companies listed in the same industry.
NNN is valuated rather cheaply when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.96, which indicates a rather expensive current valuation of NNN.
92.13% of the companies in the same industry are more expensive than NNN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, NNN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 20.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NNN indicates a somewhat cheap valuation: NNN is cheaper than 62.99% of the companies listed in the same industry.
NNN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 472.53 | ||
| EV/EBITDA | 13.32 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.08
EPS Next 2Y-2.16%
EPS Next 3Y0.08%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.35%, which is a nice return.
NNN's Dividend Yield is a higher than the industry average which is at 5.97.
Compared to an average S&P500 Dividend Yield of 2.26, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
5.2 History
The dividend of NNN has a limited annual growth rate of 0.74%.
NNN has paid a dividend for at least 10 years, which is a reliable track record.
NNN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.74%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
84.75% of the earnings are spent on dividend by NNN. This is not a sustainable payout ratio.
The dividend of NNN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP84.75%
EPS Next 2Y-2.16%
EPS Next 3Y0.08%
NNN REIT INC
NYSE:NNN (11/4/2024, 8:26:32 PM)
After market: 43.33 0 (0%)43.33
-0.07 (-0.16%)
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 Cap8.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 20.96 | ||
| 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)5.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 11.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 62.82% | ||
| PM (TTM) | 45.19% | ||
| GM | 96.62% | ||
| 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)14.89%
EPS 3Y17.54%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)33.58%
Revenue growth 3Y7.82%
Revenue growth 5Y
Sales 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