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%)
Taking everything into account, SRC scores 4 out of 10 in our fundamental rating. SRC was compared to 130 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. 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.
Each year in the past 5 years SRC has been profitable.
Each year in the past 5 years SRC had a positive operating cash flow.
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.
With a decent Return On Equity value of 5.52%, SRC is doing good in the industry, outperforming 76.00% of the companies in the same industry.
The Return On Invested Capital of SRC (3.14%) is better than 63.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SRC is in line with the industry average of 3.05%.
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
With an excellent Profit Margin value of 32.87%, SRC belongs to the best of the industry, outperforming 87.20% of the companies in the same industry.
In the last couple of years the Profit Margin of SRC has grown nicely.
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 better Gross Margin (95.85%) than 96.00% of its industry peers.
In the last couple of years the Gross Margin of SRC has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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's Altman-Z score of 0.58 is in line compared to the rest of the industry. SRC outperforms 49.60% of its industry peers.
SRC has a Debt/Equity ratio of 0.85. This is a neutral value indicating SRC is somewhat dependend on debt financing.
SRC has a Debt to Equity ratio of 0.85. This is in the better half of the industry: SRC outperforms 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
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.
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 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.
SRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.57%.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SRC is valued at the same level.
A Price/Forward Earnings ratio of 30.43 indicates a quite expensive valuation of SRC.
SRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SRC is cheaper than 76.00% of the companies in the same industry.
SRC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.88, 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 ratio is in line with 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.
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.
SRC's Dividend Yield is a higher than the industry average which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.38, 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 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
SRC pays out 154.84% of its income as dividend. 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
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
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%
ROICexcg growth 3Y-6.63%
ROICexcg 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%