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%)
SRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. While SRC belongs to the best of the industry regarding profitability, there are concerns on its financial health. SRC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SRC was profitable.
SRC had a positive operating cash flow in the past year.
1.2 Ratios
SRC's Return On Assets of 2.87% is fine compared to the rest of the industry. SRC outperforms 74.40% of its industry peers.
SRC has a better Return On Equity (5.52%) than 76.00% of its industry peers.
SRC's Return On Invested Capital of 3.14% is fine compared to the rest of the industry. SRC outperforms 63.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SRC is in line with the industry average of 3.06%.
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 has a better Profit Margin (32.87%) than 87.20% of its industry peers.
In the last couple of years the Profit Margin of SRC has grown nicely.
SRC has a better Operating Margin (44.35%) than 88.80% of its industry peers.
In the last couple of years the Operating Margin of SRC has grown nicely.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRC is destroying value.
Compared to 1 year ago, SRC has more shares outstanding
Compared to 1 year ago, SRC has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.58, SRC is in line with its industry, outperforming 49.60% of the companies in the same industry.
SRC has a Debt/Equity ratio of 0.85. This is a neutral value indicating SRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, SRC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.45
WACC6.93%
2.3 Liquidity
A Current Ratio of 0.61 indicates that SRC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.61, SRC is doing worse than 77.60% of the companies in the same industry.
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 has a worse Quick ratio (0.58) than 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
SRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.41%.
SRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
The Revenue has grown by 10.57% in the past year. This is quite good.
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.
The Revenue is expected to grow by 6.45% on average over the next years.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SRC is valuated rather expensively with a Price/Earnings ratio of 24.18.
Compared to the rest of the industry, the Price/Earnings ratio of SRC indicates a somewhat cheap valuation: SRC is cheaper than 70.40% of the companies listed in the same industry.
SRC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.88. SRC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 30.43 |
4.2 Price Multiples
SRC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
SRC has a very decent profitability rating, which may justify a higher PE ratio.
SRC's earnings are expected to decrease with -10.67% in the coming years. This may justify a cheaper valuation.
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 6.83, SRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, SRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of SRC decreases each year by -6.14%.
SRC has been paying a dividend for at least 10 years, so it has 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
SRC pays out 154.84% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of SRC has been decling, while earnings will also be 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.
What is the valuation status of Spirit Realty Capital Inc (SRC) stock?
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.
Can you provide the financial health for SRC stock?
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.