NNN REIT INC (NNN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NNN - US6374171063 - REIT
39.83 USD
+0.29 (+0.73%)
39.83 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NNN. NNN was compared to 127 industry peers in the Diversified REITs industry. While NNN has a great profitability rating, there are some minor concerns on its financial health. NNN is valued correctly, but it does not seem to be growing.
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
NNN has a better Return On Assets (4.12%) than 85.04% of its industry peers.
Looking at the Return On Equity, with a value of 8.85%, NNN belongs to the top of the industry, outperforming 81.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.71%, NNN belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NNN is in line with the industry average of 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 8.85% | ||
| ROIC | 4.71% |
ROA(3y)4.36%
ROA(5y)3.85%
ROE(3y)8.87%
ROE(5y)7.65%
ROIC(3y)4.76%
ROIC(5y)4.6%
1.3 Margins
NNN has a better Profit Margin (43.14%) than 92.91% of its industry peers.
In the last couple of years the Profit Margin of NNN has grown nicely.
Looking at the Operating Margin, with a value of 61.80%, NNN belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
NNN's Operating Margin has been stable in the last couple of years.
The Gross Margin of NNN (95.75%) is better than 96.85% of its industry peers.
In the last couple of years the Gross Margin of NNN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.8% | ||
| PM (TTM) | 43.14% | ||
| GM | 95.75% |
OM growth 3Y0.41%
OM growth 5Y0.12%
PM growth 3Y7.9%
PM growth 5Y3.47%
GM growth 3Y0.07%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNN is destroying value.
NNN has more shares outstanding than it did 1 year ago.
NNN has more shares outstanding than it did 5 years ago.
NNN has a better debt/assets ratio than last year.
2.2 Solvency
NNN has an Altman-Z score of 1.06. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NNN (1.06) is better than 78.74% of its industry peers.
NNN has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.10, NNN is in line with its industry, outperforming 56.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACC0.7
WACC6.77%
2.3 Liquidity
A Current Ratio of 2.00 indicates that NNN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.00, NNN belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
NNN has a Quick Ratio of 2.00. This indicates that NNN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.00, NNN belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
NNN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.70%.
Measured over the past 5 years, NNN shows a small growth in Earnings Per Share. The EPS has been growing by 6.63% on average per year.
NNN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.27%.
Measured over the past years, NNN shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)-3.7%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%5.31%
3.2 Future
Based on estimates for the next years, NNN will show a decrease in Earnings Per Share. The EPS will decrease by -0.26% on average per year.
NNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.76% yearly.
EPS Next Y-5.34%
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue Next Year5.88%
Revenue Next 2Y5.35%
Revenue Next 3Y5.18%
Revenue Next 5Y5.76%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.15, 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 83.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, NNN is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.62 indicates a rather expensive valuation of NNN.
Based on the Price/Forward Earnings ratio, NNN is valued cheaply inside the industry as 93.70% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NNN to the average of the S&P500 Index (23.35), we can say NNN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
NNN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.89
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 6.07%, which is a nice return.
NNN's Dividend Yield is comparable with the industry average which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.00, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
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 Years33
Div Non Decr Years33
5.3 Sustainability
112.03% of the earnings are spent on dividend by NNN. This is not a sustainable payout ratio.
NNN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP112.03%
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
39.83
+0.29 (+0.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.28%
Inst Owner Change1.22%
Ins Owners0.72%
Ins Owner Change0.47%
Market Cap7.56B
Revenue(TTM)906.30M
Net Income(TTM)391.00M
Analysts56.15
Price Target45.14 (13.33%)
Short Float %2.64%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
Yearly Dividend2.27
Dividend Growth(5Y)0.74%
DP112.03%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.76%
Min EPS beat(2)5.57%
Max EPS beat(2)9.95%
EPS beat(4)4
Avg EPS beat(4)6.99%
Min EPS beat(4)5.47%
Max EPS beat(4)9.95%
EPS beat(8)8
Avg EPS beat(8)8.22%
EPS beat(12)12
Avg EPS beat(12)9.26%
EPS beat(16)14
Avg EPS beat(16)6.86%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.44%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-0.59%
Max Revenue beat(4)4.22%
Revenue beat(8)7
Avg Revenue beat(8)1.31%
Revenue beat(12)9
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)0.84%
PT rev (1m)-0.23%
PT rev (3m)-0.66%
EPS NQ rev (1m)-8.83%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)1.15%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 19.62 | ||
| P/S | 8.35 | ||
| P/FCF | N/A | ||
| P/OCF | 11.49 | ||
| P/B | 1.71 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)2.08
EY5.22%
EPS(NY)2.03
Fwd EY5.1%
FCF(TTM)-1.61
FCFYN/A
OCF(TTM)3.47
OCFY8.71%
SpS4.77
BVpS23.27
TBVpS23.08
PEG (NY)N/A
PEG (5Y)2.89
Graham Number33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 8.85% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 4.84% | ||
| OM | 61.8% | ||
| PM (TTM) | 43.14% | ||
| GM | 95.75% | ||
| FCFM | N/A |
ROA(3y)4.36%
ROA(5y)3.85%
ROE(3y)8.87%
ROE(5y)7.65%
ROIC(3y)4.76%
ROIC(5y)4.6%
ROICexc(3y)4.76%
ROICexc(5y)4.65%
ROICexgc(3y)4.82%
ROICexgc(5y)4.72%
ROCE(3y)6.02%
ROCE(5y)5.82%
ROICexgc growth 3Y1.06%
ROICexgc growth 5Y1.72%
ROICexc growth 3Y1.19%
ROICexc growth 5Y1.8%
OM growth 3Y0.41%
OM growth 5Y0.12%
PM growth 3Y7.9%
PM growth 5Y3.47%
GM growth 3Y0.07%
GM growth 5Y0.09%
F-Score3
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.91 | ||
| Cap/Depr | 366.02% | ||
| Cap/Sales | 106.38% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 79.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 1.06 |
F-Score3
WACC6.77%
ROIC/WACC0.7
Cap/Depr(3y)313.19%
Cap/Depr(5y)261.77%
Cap/Sales(3y)90.34%
Cap/Sales(5y)75.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.7%
EPS 3Y12.5%
EPS 5Y6.63%
EPS Q2Q%-3.77%
EPS Next Y-5.34%
EPS Next 2Y-2.83%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.27%
Revenue growth 3Y6.17%
Revenue growth 5Y5.33%
Sales Q2Q%5.31%
Revenue Next Year5.88%
Revenue Next 2Y5.35%
Revenue Next 3Y5.18%
Revenue Next 5Y5.76%
EBIT growth 1Y-17.63%
EBIT growth 3Y6.6%
EBIT growth 5Y5.46%
EBIT Next Year51.27%
EBIT Next 3Y19.22%
EBIT Next 5Y15.92%
FCF growth 1Y-62.93%
FCF growth 3Y60.67%
FCF growth 5YN/A
OCF growth 1Y9.06%
OCF growth 3Y3.79%
OCF growth 5Y4.84%
NNN REIT INC / NNN FAQ
Can you provide the ChartMill fundamental rating for NNN REIT INC?
ChartMill assigns a fundamental rating of 5 / 10 to NNN.
Can you provide the valuation status for NNN REIT INC?
ChartMill assigns a valuation rating of 4 / 10 to NNN REIT INC (NNN). This can be considered as Fairly Valued.
What is the profitability of NNN stock?
NNN REIT INC (NNN) has a profitability rating of 8 / 10.
What are the PE and PB ratios of NNN REIT INC (NNN) stock?
The Price/Earnings (PE) ratio for NNN REIT INC (NNN) is 19.15 and the Price/Book (PB) ratio is 1.71.
What is the earnings growth outlook for NNN REIT INC?
The Earnings per Share (EPS) of NNN REIT INC (NNN) is expected to decline by -5.34% in the next year.