Spirit Realty Capital Inc (SRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SRC - US84860W3007 - REIT
42.31 USD
-0.67 (-1.56%)
42.31 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SRC. SRC was compared to 128 industry peers in the Diversified REITs industry. SRC scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, SRC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SRC had positive earnings in the past year.
In the past year SRC had a positive cash flow from operations.
In the past 5 years SRC has always been profitable.
Each year in the past 5 years SRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.87%, SRC is in the better half of the industry, outperforming 74.40% of the companies in the same industry.
SRC has a better Return On Equity (5.52%) than 76.00% of its industry peers.
SRC has a Return On Invested Capital of 3.14%. This is in the better half of the industry: SRC outperforms 63.20% of its industry peers.
SRC had an Average Return On Invested Capital over the past 3 years of 2.96%. This is in line with the industry average of 3.04%.
The last Return On Invested Capital (3.14%) for SRC is above the 3 year average (2.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 5.52% | ||
| ROIC | 3.14% |
ROA(3y)1.89%
ROA(5y)2.17%
ROE(3y)3.49%
ROE(5y)3.92%
ROIC(3y)2.96%
ROIC(5y)3.19%
1.3 Margins
SRC's Profit Margin of 32.87% is amongst the best of the industry. SRC outperforms 87.20% of its industry peers.
SRC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 44.35%, SRC belongs to the best of the industry, outperforming 88.80% of the companies in the same industry.
SRC's Operating Margin has improved in the last couple of years.
SRC has a Gross Margin of 95.85%. This is amongst the best in the industry. SRC outperforms 96.00% of its industry peers.
SRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.35% | ||
| PM (TTM) | 32.87% | ||
| GM | 95.85% |
OM growth 3Y-3.89%
OM growth 5Y2.83%
PM growth 3Y6.81%
PM growth 5Y17.76%
GM growth 3Y-0.21%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
SRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SRC has more shares outstanding
SRC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that SRC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SRC (0.58) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that SRC is somewhat dependend on debt financing.
SRC has a better Debt to Equity ratio (0.85) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.45
WACC6.93%
2.3 Liquidity
SRC has a Current Ratio of 0.61. This is a bad value and indicates that SRC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.61, SRC is not doing good in the industry: 77.60% of the companies in the same industry are doing better.
SRC has a Quick Ratio of 0.61. This is a bad value and indicates that SRC is not financially healthy enough and could expect problems in meeting its short term obligations.
SRC's Quick ratio of 0.58 is on the low side compared to the rest of the industry. SRC is outperformed by 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for SRC have decreased by -7.41% in the last year.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
SRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.57%.
Measured over the past years, SRC shows a quite strong growth in Revenue. The Revenue has been growing by 10.47% on average per year.
EPS 1Y (TTM)-7.41%
EPS 3Y1%
EPS 5Y20.59%
EPS Q2Q%-53.7%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y11.18%
Revenue growth 5Y10.47%
Sales Q2Q%5.74%
3.2 Future
The Earnings Per Share is expected to decrease by -7.61% on average over the next years.
Based on estimates for the next years, SRC will show a small growth in Revenue. The Revenue will grow by 6.45% on average per year.
EPS Next Y-16.82%
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
EPS Next 5Y-7.61%
Revenue Next Year7.73%
Revenue Next 2Y5.01%
Revenue Next 3Y4.5%
Revenue Next 5Y6.45%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.18, the valuation of SRC can be described as rather expensive.
70.40% of the companies in the same industry are more expensive than SRC, based on the Price/Earnings ratio.
SRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 30.43, SRC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SRC is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
SRC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 30.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
The excellent profitability rating of SRC may justify a higher PE ratio.
A cheap valuation may be justified as SRC's earnings are expected to decrease with -10.67% in the coming years.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
5. Dividend
5.1 Amount
SRC has a Yearly Dividend Yield of 6.33%, which is a nice return.
Compared to an average industry Dividend Yield of 6.59, SRC pays a bit more dividend than its industry peers.
SRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of SRC decreases each year by -6.14%.
SRC has paid a dividend for at least 10 years, which is a reliable track record.
SRC has decreased its dividend recently.
Dividend Growth(5Y)-6.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
154.84% of the earnings are spent on dividend by SRC. This is not a sustainable payout ratio.
SRC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP154.84%
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
42.31
-0.67 (-1.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners2.68%
Inst Owner Change0%
Ins Owners1.79%
Ins Owner Change0%
Market Cap5.99B
Revenue(TTM)754.40M
Net Income(TTM)248.00M
Analysts70
Price Target44.35 (4.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Yearly Dividend2.67
Dividend Growth(5Y)-6.14%
DP154.84%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.33%
Min EPS beat(2)-30.76%
Max EPS beat(2)-1.9%
EPS beat(4)2
Avg EPS beat(4)17.92%
Min EPS beat(4)-30.76%
Max EPS beat(4)80.68%
EPS beat(8)5
Avg EPS beat(8)22.01%
EPS beat(12)7
Avg EPS beat(12)11.62%
EPS beat(16)7
Avg EPS beat(16)-18.12%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)2.27%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)2.27%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)3%
Revenue beat(16)11
Avg Revenue beat(16)2.33%
PT rev (1m)0.77%
PT rev (3m)4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 30.43 | ||
| P/S | 7.94 | ||
| P/FCF | N/A | ||
| P/OCF | 11.49 | ||
| P/B | 1.33 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 14.94 |
EPS(TTM)1.75
EY4.14%
EPS(NY)1.39
Fwd EY3.29%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)3.68
OCFY8.7%
SpS5.33
BVpS31.74
TBVpS27.4
PEG (NY)N/A
PEG (5Y)1.17
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 5.52% | ||
| ROCE | 3.97% | ||
| ROIC | 3.14% | ||
| ROICexc | 3.19% | ||
| ROICexgc | 3.45% | ||
| OM | 44.35% | ||
| PM (TTM) | 32.87% | ||
| GM | 95.85% | ||
| FCFM | N/A |
ROA(3y)1.89%
ROA(5y)2.17%
ROE(3y)3.49%
ROE(5y)3.92%
ROIC(3y)2.96%
ROIC(5y)3.19%
ROICexc(3y)2.97%
ROICexc(5y)3.2%
ROICexgc(3y)3.26%
ROICexgc(5y)3.54%
ROCE(3y)3.75%
ROCE(5y)4.03%
ROICexgc growth 3Y-6.63%
ROICexgc growth 5Y10.42%
ROICexc growth 3Y-5.64%
ROICexc growth 5Y10.32%
OM growth 3Y-3.89%
OM growth 5Y2.83%
PM growth 3Y6.81%
PM growth 5Y17.76%
GM growth 3Y-0.21%
GM growth 5Y0.51%
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 264.97% | ||
| Cap/Sales | 109.9% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 80.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.58 |
F-Score4
WACC6.93%
ROIC/WACC0.45
Cap/Depr(3y)482.02%
Cap/Depr(5y)473.62%
Cap/Sales(3y)200.85%
Cap/Sales(5y)186.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.41%
EPS 3Y1%
EPS 5Y20.59%
EPS Q2Q%-53.7%
EPS Next Y-16.82%
EPS Next 2Y-17.44%
EPS Next 3Y-10.67%
EPS Next 5Y-7.61%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y11.18%
Revenue growth 5Y10.47%
Sales Q2Q%5.74%
Revenue Next Year7.73%
Revenue Next 2Y5.01%
Revenue Next 3Y4.5%
Revenue Next 5Y6.45%
EBIT growth 1Y5.32%
EBIT growth 3Y6.86%
EBIT growth 5Y13.59%
EBIT Next Year104.37%
EBIT Next 3Y29.69%
EBIT Next 5Y24.14%
FCF growth 1Y60.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.99%
OCF growth 3Y12.79%
OCF growth 5Y4.31%
Spirit Realty Capital Inc / SRC FAQ
Can you provide the ChartMill fundamental rating for Spirit Realty Capital Inc?
ChartMill assigns a fundamental rating of 4 / 10 to SRC.
Can you provide the valuation status for Spirit Realty Capital Inc?
ChartMill assigns a valuation rating of 2 / 10 to Spirit Realty Capital Inc (SRC). This can be considered as Overvalued.
What is the profitability of SRC stock?
Spirit Realty Capital Inc (SRC) has a profitability rating of 8 / 10.
How financially healthy is Spirit Realty Capital Inc?
The financial health rating of Spirit Realty Capital Inc (SRC) is 1 / 10.
What is the earnings growth outlook for Spirit Realty Capital Inc?
The Earnings per Share (EPS) of Spirit Realty Capital Inc (SRC) is expected to decline by -16.82% in the next year.