NNN REIT INC (NNN)
US6374171063 - REIT
Overall NNN gets a fundamental rating of 6 out of 10. We evaluated NNN against 130 industry peers in the Diversified REITs industry. While NNN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NNN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NNN was profitable.
In the past year NNN had a positive cash flow from operations.
Each year in the past 5 years NNN has been profitable.
NNN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NNN's Return On Assets of 5.48% is amongst the best of the industry. NNN outperforms 93.75% of its industry peers.
With an excellent Return On Equity value of 11.20%, NNN belongs to the best of the industry, outperforming 91.41% of the companies in the same industry.
NNN has a better Return On Invested Capital (6.07%) than 95.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NNN is in line with the industry average of 3.08%.
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 better Profit Margin (45.19%) than 92.97% of its industry peers.
NNN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 62.82%, NNN belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
NNN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 96.62%, NNN belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NNN 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
The debt/assets ratio for NNN is higher compared to a year ago.
2.2 Solvency
NNN has an Altman-Z score of 1.25. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
NNN has a better Altman-Z score (1.25) than 81.25% of its industry peers.
NNN has a debt to FCF ratio of 254.26. This is a negative value and a sign of low solvency as NNN would need 254.26 years to pay back of all of its debts.
NNN's Debt to FCF ratio of 254.26 is in line compared to the rest of the industry. NNN outperforms 46.88% of its industry peers.
A Debt/Equity ratio of 1.00 is on the high side and indicates that NNN has dependencies on debt financing.
NNN has a Debt to Equity ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 254.26 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.87
WACC6.95%
2.3 Liquidity
A Current Ratio of 2.33 indicates that NNN has no problem at all paying its short term obligations.
NNN's Current ratio of 2.33 is fine compared to the rest of the industry. NNN outperforms 78.13% of its industry peers.
NNN has a Quick Ratio of 2.33. This indicates that NNN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.33, NNN is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.41% over the past year.
NNN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.95% yearly.
NNN shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.58%.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)1.41%
EPS 3Y17.54%
EPS 5Y3.95%
EPS Q2Q%-10.17%
Revenue 1Y (TTM)33.58%
Revenue growth 3Y7.82%
Revenue growth 5Y5.87%
Sales Q2Q%6.55%
3.2 Future
Based on estimates for the next years, NNN will show a decrease in Earnings Per Share. The EPS will decrease by -0.57% on average per year.
NNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.18% yearly.
EPS Next Y-1.62%
EPS Next 2Y-3.05%
EPS Next 3Y-0.57%
EPS Next 5YN/A
Revenue Next Year5.91%
Revenue Next 2Y5.02%
Revenue Next 3Y5.02%
Revenue Next 5Y5.18%
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
A Price/Earnings ratio of 18.68 indicates a rather expensive valuation of NNN.
Compared to the rest of the industry, the Price/Earnings ratio of NNN indicates a rather cheap valuation: NNN is cheaper than 84.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. NNN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.88, the valuation of NNN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NNN indicates a rather cheap valuation: NNN is cheaper than 92.19% of the companies listed in the same industry.
NNN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
NNN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NNN is cheaper than 66.41% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NNN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 440.03 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.73
EPS Next 2Y-3.05%
EPS Next 3Y-0.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.83%, NNN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 16.05, NNN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
5.2 History
The dividend of NNN has a limited annual growth rate of 0.74%.
NNN has been paying a dividend for at least 10 years, so it has a reliable track record.
NNN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.74%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
NNN pays out 84.75% of its income as dividend. 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.
DP84.75%
EPS Next 2Y-3.05%
EPS Next 3Y-0.57%
NNN REIT INC
NYSE:NNN (12/20/2024, 8:04:01 PM)
After market: 40.35 0 (0%)40.35
+0.58 (+1.46%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.75%
Inst Owner Change3.32%
Ins Owners0.7%
Ins Owner Change-1.6%
Market Cap7.57B
Analysts69
Price Target47.78 (18.41%)
Short Float %1.99%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
Dividend Growth(5Y)0.74%
DP84.75%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.34%
Min EPS beat(2)6.16%
Max EPS beat(2)16.52%
EPS beat(4)4
Avg EPS beat(4)9.44%
Min EPS beat(4)6.15%
Max EPS beat(4)16.52%
EPS beat(8)8
Avg EPS beat(8)10.39%
EPS beat(12)10
Avg EPS beat(12)6.82%
EPS beat(16)12
Avg EPS beat(16)4.08%
Revenue beat(2)2
Avg Revenue beat(2)0.75%
Min Revenue beat(2)0.58%
Max Revenue beat(2)0.92%
Revenue beat(4)4
Avg Revenue beat(4)1.46%
Min Revenue beat(4)0.58%
Max Revenue beat(4)3.49%
Revenue beat(8)6
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)1.11%
PT rev (1m)-2.85%
PT rev (3m)-0.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)1.15%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 19.88 | ||
| P/S | 6.99 | ||
| P/FCF | 440.03 | ||
| P/OCF | 11.83 | ||
| P/B | 1.73 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 12.7 |
EPS(TTM)2.16
EY5.35%
EPS(NY)2.03
Fwd EY5.03%
FCF(TTM)0.09
FCFY0.23%
OCF(TTM)3.41
OCFY8.45%
SpS5.77
BVpS23.3
TBVpS23.11
PEG (NY)N/A
PEG (5Y)4.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 11.2% | ||
| ROCE | 7.68% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.19% | ||
| ROICexgc | 6.27% | ||
| OM | 62.82% | ||
| PM (TTM) | 45.19% | ||
| GM | 96.62% | ||
| FCFM | 1.59% |
ROA(3y)4.01%
ROA(5y)3.65%
ROE(3y)8.09%
ROE(5y)7.02%
ROIC(3y)4.67%
ROIC(5y)4.51%
ROICexc(3y)4.7%
ROICexc(5y)4.56%
ROICexgc(3y)4.77%
ROICexgc(5y)4.64%
ROCE(3y)5.91%
ROCE(5y)5.71%
ROICexcg growth 3Y3.28%
ROICexcg growth 5Y1.41%
ROICexc growth 3Y3.48%
ROICexc growth 5Y1.45%
OM growth 3Y1.27%
OM growth 5Y0.01%
PM growth 3Y14.14%
PM growth 5Y2.72%
GM growth 3Y0.3%
GM growth 5Y0.13%
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 254.26 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 252.32% | ||
| Cap/Sales | 57.49% | ||
| Interest Coverage | 4.21 | ||
| Cash Conversion | 69.01% | ||
| Profit Quality | 3.52% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 1.25 |
F-Score7
WACC6.95%
ROIC/WACC0.87
Cap/Depr(3y)326.59%
Cap/Depr(5y)295.02%
Cap/Sales(3y)93.77%
Cap/Sales(5y)84.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.41%
EPS 3Y17.54%
EPS 5Y3.95%
EPS Q2Q%-10.17%
EPS Next Y-1.62%
EPS Next 2Y-3.05%
EPS Next 3Y-0.57%
EPS Next 5YN/A
Revenue 1Y (TTM)33.58%
Revenue growth 3Y7.82%
Revenue growth 5Y5.87%
Sales Q2Q%6.55%
Revenue Next Year5.91%
Revenue Next 2Y5.02%
Revenue Next 3Y5.02%
Revenue Next 5Y5.18%
EBIT growth 1Y35.05%
EBIT growth 3Y9.19%
EBIT growth 5Y5.87%
EBIT Next Year53.23%
EBIT Next 3Y19.01%
EBIT Next 5Y14.9%
FCF growth 1Y118.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.15%
OCF growth 3Y10.8%
OCF growth 5Y5.35%