NNN REIT INC (NNN) Stock Fundamental Analysis
NYSE:NNN - New York Stock Exchange, Inc. - US6374171063 - REIT
NNN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. NNN also has an excellent dividend rating.
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.
In the past 5 years NNN has always been profitable.
In the past 5 years NNN always reported a positive cash flow from operatings.
1.2 Ratios
NNN's Return On Assets of 5.48% is amongst the best of the industry. NNN outperforms 93.65% of its industry peers.
The Return On Equity of NNN (11.20%) is better than 91.27% of its industry peers.
NNN's Return On Invested Capital of 6.07% is amongst the best of the industry. NNN outperforms 95.24% 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 3.11%.
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
With an excellent Profit Margin value of 45.19%, NNN belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of NNN has grown nicely.
With an excellent Operating Margin value of 62.82%, NNN belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
In the last couple of years the Operating Margin of NNN has remained more or less at the same level.
NNN has a better Gross Margin (96.62%) than 96.83% 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.
The number of shares outstanding for NNN has been increased compared to 5 years ago.
Compared to 1 year ago, NNN has a worse debt to assets ratio.
2.2 Solvency
NNN has an Altman-Z score of 1.26. This is a bad value and indicates that NNN is not financially healthy and even has some risk of bankruptcy.
NNN's Altman-Z score of 1.26 is amongst the best of the industry. NNN outperforms 80.95% 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.
With a Debt to FCF ratio value of 254.26, NNN perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
A Debt/Equity ratio of 1.00 is on the high side and indicates that NNN has dependencies on debt financing.
The Debt to Equity ratio of NNN (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 254.26 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.87
WACC6.99%
2.3 Liquidity
A Current Ratio of 2.33 indicates that NNN has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.33, NNN is doing good in the industry, outperforming 78.57% of the companies in the same industry.
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 80.16% 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 been growing slightly by 1.41% over the past year.
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.
NNN shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.58%.
Measured over the past years, NNN shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
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.
Based on estimates for the next years, NNN will show a small growth in Revenue. The Revenue will grow by 5.18% on average per year.
EPS Next Y-1.62%
EPS Next 2Y-3.05%
EPS Next 3Y-0.57%
EPS Next 5YN/A
Revenue Next Year5.83%
Revenue Next 2Y4.91%
Revenue Next 3Y4.9%
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.
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
NNN is valuated rather expensively with a Price/Earnings ratio of 18.78.
NNN's Price/Earnings ratio is rather cheap when compared to the industry. NNN is cheaper than 84.13% of the companies in the same industry.
NNN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.98, 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 91.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, NNN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 19.98 |
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 68.25% of the companies listed in the same industry.
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 | 442.43 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
NNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.76
EPS Next 2Y-3.05%
EPS Next 3Y-0.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, NNN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 18.51, NNN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, NNN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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
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 (1/21/2025, 8:17:13 PM)
After market: 40.5855 +0.02 (+0.04%)40.57
+0.5 (+1.25%)
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 Change0%
Ins Owners0.7%
Ins Owner Change-1.25%
Market Cap7.61B
Analysts69.09
Price Target47.14 (16.19%)
Short Float %2.38%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend2.22
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)-1.33%
PT rev (3m)-2.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.78 | ||
| Fwd PE | 19.98 | ||
| P/S | 7.03 | ||
| P/FCF | 442.43 | ||
| P/OCF | 11.9 | ||
| P/B | 1.74 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)2.16
EY5.32%
EPS(NY)2.03
Fwd EY5%
FCF(TTM)0.09
FCFY0.23%
OCF(TTM)3.41
OCFY8.4%
SpS5.77
BVpS23.3
TBVpS23.11
PEG (NY)N/A
PEG (5Y)4.76
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 | 1.26 |
F-Score7
WACC6.99%
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 Year5.83%
Revenue Next 2Y4.91%
Revenue Next 3Y4.9%
Revenue Next 5Y5.18%
EBIT growth 1Y35.05%
EBIT growth 3Y9.19%
EBIT growth 5Y5.87%
EBIT Next Year53.13%
EBIT Next 3Y19.1%
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%