STAG INDUSTRIAL INC (STAG) Stock Fundamental Analysis
NYSE:STAG - New York Stock Exchange, Inc. - US85254J1025 - REIT - Currency: USD
Taking everything into account, STAG scores 4 out of 10 in our fundamental rating. STAG was compared to 129 industry peers in the Diversified REITs industry. STAG scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, STAG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
STAG had positive earnings in the past year.
STAG had a positive operating cash flow in the past year.
In the past 5 years STAG has always been profitable.
Each year in the past 5 years STAG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STAG (2.74%) is better than 74.60% of its industry peers.
The Return On Equity of STAG (5.46%) is better than 71.43% of its industry peers.
STAG has a better Return On Invested Capital (3.24%) than 62.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STAG is in line with the industry average of 3.11%.
The last Return On Invested Capital (3.24%) for STAG is above the 3 year average (2.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 5.46% | ||
| ROIC | 3.24% |
ROA(3y)3.06%
ROA(5y)2.88%
ROE(3y)5.54%
ROE(5y)5.15%
ROIC(3y)2.69%
ROIC(5y)2.51%
1.3 Margins
Looking at the Profit Margin, with a value of 23.93%, STAG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of STAG has grown nicely.
STAG's Operating Margin of 34.47% is fine compared to the rest of the industry. STAG outperforms 74.60% of its industry peers.
In the last couple of years the Operating Margin of STAG has grown nicely.
With a decent Gross Margin value of 80.21%, STAG is doing good in the industry, outperforming 79.37% of the companies in the same industry.
In the last couple of years the Gross Margin of STAG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.47% | ||
| PM (TTM) | 23.93% | ||
| GM | 80.21% |
OM growth 3Y5.73%
OM growth 5Y8.32%
PM growth 3Y-12.55%
PM growth 5Y3%
GM growth 3Y-0.49%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STAG is destroying value.
STAG has more shares outstanding than it did 1 year ago.
STAG has more shares outstanding than it did 5 years ago.
STAG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that STAG is in the distress zone and has some risk of bankruptcy.
STAG has a better Altman-Z score (1.17) than 80.16% of its industry peers.
STAG has a Debt/Equity ratio of 0.89. This is a neutral value indicating STAG is somewhat dependend on debt financing.
STAG's Debt to Equity ratio of 0.89 is fine compared to the rest of the industry. STAG outperforms 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.44
WACC7.31%
2.3 Liquidity
STAG has a Current Ratio of 1.24. This is a normal value and indicates that STAG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.24, STAG is in line with its industry, outperforming 52.38% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that STAG should not have too much problems paying its short term obligations.
STAG has a Quick ratio (1.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for STAG have decreased by -5.88% in the last year.
Measured over the past 5 years, STAG shows a small growth in Earnings Per Share. The EPS has been growing by 6.67% on average per year.
The Revenue has grown by 8.13% in the past year. This is quite good.
The Revenue has been growing by 15.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.88%
EPS 3Y-6.47%
EPS 5Y6.67%
EPS Q2Q%-25%
Revenue 1Y (TTM)8.13%
Revenue growth 3Y13.56%
Revenue growth 5Y15.06%
Sales Q2Q%6.99%
3.2 Future
Based on estimates for the next years, STAG will show a decrease in Earnings Per Share. The EPS will decrease by -3.72% on average per year.
STAG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.60% yearly.
EPS Next Y-12.17%
EPS Next 2Y-12%
EPS Next 3Y-3.72%
EPS Next 5YN/A
Revenue Next Year8.4%
Revenue Next 2Y7.92%
Revenue Next 3Y8.42%
Revenue Next 5Y10.6%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.04, STAG can be considered very expensive at the moment.
STAG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, STAG is valued a bit more expensive.
STAG is valuated quite expensively with a Price/Forward Earnings ratio of 41.37.
Based on the Price/Forward Earnings ratio, STAG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
STAG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.04 | ||
| Fwd PE | 41.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STAG indicates a slightly more expensive valuation: STAG is more expensive than 69.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
STAG has a very decent profitability rating, which may justify a higher PE ratio.
STAG's earnings are expected to decrease with -3.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.4
EPS Next 2Y-12%
EPS Next 3Y-3.72%
5. Dividend
5.1 Amount
STAG has a Yearly Dividend Yield of 4.35%, which is a nice return.
STAG's Dividend Yield is comparable with the industry average which is at 18.24.
Compared to an average S&P500 Dividend Yield of 2.27, STAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
The dividend of STAG decreases each year by -0.48%.
STAG has paid a dividend for at least 10 years, which is a reliable track record.
STAG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.48%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
152.54% of the earnings are spent on dividend by STAG. This is not a sustainable payout ratio.
STAG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP152.54%
EPS Next 2Y-12%
EPS Next 3Y-3.72%
STAG INDUSTRIAL INC
NYSE:STAG (1/30/2025, 1:48:56 PM)
34.6
+0.74 (+2.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner Change-0.16%
Ins Owners0.13%
Ins Owner Change2.68%
Market Cap6.30B
Analysts75.56
Price Target42.33 (22.34%)
Short Float %1.05%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend1.48
Dividend Growth(5Y)-0.48%
DP152.54%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.46%
Min EPS beat(2)23.53%
Max EPS beat(2)49.39%
EPS beat(4)4
Avg EPS beat(4)24.5%
Min EPS beat(4)3.2%
Max EPS beat(4)49.39%
EPS beat(8)7
Avg EPS beat(8)36.17%
EPS beat(12)11
Avg EPS beat(12)60.52%
EPS beat(16)15
Avg EPS beat(16)94.64%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.75%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-0.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.82%
Revenue beat(12)3
Avg Revenue beat(12)-0.82%
Revenue beat(16)6
Avg Revenue beat(16)-0.29%
PT rev (1m)0.2%
PT rev (3m)-2.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.64%
EPS NY rev (1m)0%
EPS NY rev (3m)7.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.04 | ||
| Fwd PE | 41.37 | ||
| P/S | 8.39 | ||
| P/FCF | N/A | ||
| P/OCF | 14.11 | ||
| P/B | 1.91 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)0.96
EY2.77%
EPS(NY)0.84
Fwd EY2.42%
FCF(TTM)-0.76
FCFYN/A
OCF(TTM)2.45
OCFY7.09%
SpS4.12
BVpS18.09
TBVpS18.09
PEG (NY)N/A
PEG (5Y)5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.74% | ||
| ROE | 5.46% | ||
| ROCE | 4.1% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.29% | ||
| OM | 34.47% | ||
| PM (TTM) | 23.93% | ||
| GM | 80.21% | ||
| FCFM | N/A |
ROA(3y)3.06%
ROA(5y)2.88%
ROE(3y)5.54%
ROE(5y)5.15%
ROIC(3y)2.69%
ROIC(5y)2.51%
ROICexc(3y)2.7%
ROICexc(5y)2.52%
ROICexgc(3y)2.72%
ROICexgc(5y)2.53%
ROCE(3y)3.41%
ROCE(5y)3.18%
ROICexcg growth 3Y9.17%
ROICexcg growth 5Y8.43%
ROICexc growth 3Y8.86%
ROICexc growth 5Y8.31%
OM growth 3Y5.73%
OM growth 5Y8.32%
PM growth 3Y-12.55%
PM growth 5Y3%
GM growth 3Y-0.49%
GM growth 5Y0.07%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.32 | ||
| Cap/Depr | 201.54% | ||
| Cap/Sales | 77.91% | ||
| Interest Coverage | 2.77 | ||
| Cash Conversion | 81.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 1.17 |
F-Score6
WACC7.31%
ROIC/WACC0.44
Cap/Depr(3y)318.77%
Cap/Depr(5y)405.61%
Cap/Sales(3y)133.3%
Cap/Sales(5y)176.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.88%
EPS 3Y-6.47%
EPS 5Y6.67%
EPS Q2Q%-25%
EPS Next Y-12.17%
EPS Next 2Y-12%
EPS Next 3Y-3.72%
EPS Next 5YN/A
Revenue 1Y (TTM)8.13%
Revenue growth 3Y13.56%
Revenue growth 5Y15.06%
Sales Q2Q%6.99%
Revenue Next Year8.4%
Revenue Next 2Y7.92%
Revenue Next 3Y8.42%
Revenue Next 5Y10.6%
EBIT growth 1Y14.36%
EBIT growth 3Y20.06%
EBIT growth 5Y24.64%
EBIT Next Year140.14%
EBIT Next 3Y42.05%
EBIT Next 5Y35.87%
FCF growth 1Y84.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.77%
OCF growth 3Y9.99%
OCF growth 5Y14.61%