NNN REIT INC (NNN)
US6374171063 - REIT
We assign a fundamental rating of 6 out of 10 to NNN. NNN was compared to 129 industry peers in the Diversified REITs industry. While NNN has a great profitability rating, there are some minor concerns on its financial health. NNN has a correct valuation and a medium growth rate. Finally NNN also has an excellent dividend rating. These ratings would make NNN suitable 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.
In the past 5 years NNN has always been profitable.
Each year in the past 5 years NNN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NNN (5.48%) is better than 93.70% of its industry peers.
NNN's Return On Equity of 11.20% is amongst the best of the industry. NNN outperforms 91.34% of its industry peers.
NNN has a better Return On Invested Capital (6.07%) than 95.28% 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 last Return On Invested Capital (6.07%) for NNN is above the 3 year average (4.67%), which is a sign of increasing profitability.
| 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 92.91% 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's Gross Margin of 96.62% is amongst the best of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NNN is destroying value.
Compared to 1 year ago, NNN has more shares outstanding
NNN has more shares outstanding than it did 5 years ago.
NNN has a worse debt/assets ratio than last year.
2.2 Solvency
NNN has an Altman-Z score of 1.34. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.34, NNN belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
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 has a Debt to FCF ratio (254.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.00 is on the high side and indicates that NNN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.00, NNN perfoms like the industry average, outperforming 57.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 254.26 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.87
WACC6.96%
2.3 Liquidity
A Current Ratio of 2.33 indicates that NNN has no problem at all paying its short term obligations.
The Current ratio of NNN (2.33) is better than 80.31% 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.
NNN has a better Quick ratio (2.33) than 81.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
NNN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.41%.
Measured over the past 5 years, NNN shows a small growth in Earnings Per Share. The EPS has been growing by 3.95% on average per year.
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)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
The Earnings Per Share is expected to grow by 0.05% on average over the next years.
NNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-2.74%
EPS Next 2Y-2.16%
EPS Next 3Y0.05%
EPS Next 5YN/A
Revenue Next Year5.9%
Revenue Next 2Y5.1%
Revenue Next 3Y4.97%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
NNN is valuated rather expensively with a Price/Earnings ratio of 20.23.
NNN's Price/Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 84.25% of the companies in the same industry.
NNN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
NNN is valuated rather expensively with a Price/Forward Earnings ratio of 21.13.
NNN's Price/Forward Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 92.13% of the companies in the same industry.
NNN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 21.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NNN is valued a bit cheaper than the industry average as 63.78% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NNN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 476.46 | ||
| EV/EBITDA | 13.42 |
4.3 Compensation for Growth
The excellent profitability rating of NNN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.13
EPS Next 2Y-2.16%
EPS Next 3Y0.05%
5. Dividend
5.1 Amount
NNN has a Yearly Dividend Yield of 5.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.55, NNN pays a bit more dividend than its industry peers.
NNN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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 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 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.
NNN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP84.75%
EPS Next 2Y-2.16%
EPS Next 3Y0.05%
NNN REIT INC
NYSE:NNN (11/21/2024, 8:04:01 PM)
After market: 43.69 0 (0%)43.69
-0.23 (-0.52%)
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 Cap8.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
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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 | 20.23 | ||
| Fwd PE | 21.13 | ||
| 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)5.13
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)1.41%
EPS 3Y17.54%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.74%
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