Spirit Realty Capital Inc (SRC) Stock Fundamental Analysis
USA - 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 127 industry peers in the Diversified REITs industry. While SRC has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, SRC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SRC was profitable.
In the past year SRC had a positive cash flow from operations.
In the past 5 years SRC has always been profitable.
In the past 5 years SRC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.87%, SRC is doing good in the industry, outperforming 74.40% of the companies in the same industry.
SRC's Return On Equity of 5.52% is fine compared to the rest of the industry. SRC outperforms 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.
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 3 year average ROIC (2.96%) for SRC is below the current ROIC(3.14%), indicating increased profibility in the last year.
| 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
The Profit Margin of SRC (32.87%) is better than 87.20% of its industry peers.
SRC's Profit Margin has improved in the last couple of years.
SRC's Operating Margin of 44.35% is amongst the best of the industry. SRC outperforms 88.80% of its industry peers.
SRC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 95.85%, SRC belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
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
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.
SRC has a Altman-Z score of 0.58. This is comparable to the rest of the industry: SRC outperforms 49.60% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that 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.
SRC's Current ratio of 0.61 is on the low side compared to the rest of the industry. SRC is outperformed by 77.60% of its industry peers.
A Quick Ratio of 0.58 indicates that SRC may have some problems paying its short term obligations.
SRC has a Quick ratio of 0.58. This is in the lower half of the industry: SRC underperforms 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.
Measured over the past years, SRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
The Revenue has grown by 10.57% in the past year. This is quite good.
SRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.47% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.18 indicates a rather expensive valuation of SRC.
70.40% of the companies in the same industry are more expensive than SRC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SRC to the average of the S&P500 Index (26.51), we can say SRC is valued inline with the index average.
The Price/Forward Earnings ratio is 30.43, which means the current valuation is very expensive for SRC.
76.00% of the companies in the same industry are more expensive than SRC, based on the Price/Forward Earnings ratio.
SRC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| 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 an outstanding 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.
SRC's Dividend Yield is a higher than the industry average which is at 6.40.
SRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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.
The dividend of SRC decreased 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.