NNN REIT, Inc.
NNN REIT, Inc. Fundamental Analysis
NNN REIT, Inc. (NNN) shows moderate financial fundamentals with a PE ratio of 21.80, profit margin of 42.08%, and ROE of 8.89%. The company generates $0.9B in annual revenue with moderate year-over-year growth of 4.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NNN's fundamental strength across five key dimensions:
Efficiency Score
WeakNNN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNNN trades at attractive valuation levels.
Growth Score
WeakNNN faces weak or negative growth trends.
Financial Health Score
WeakNNN carries high financial risk with limited liquidity.
Profitability Score
ModerateNNN maintains healthy but balanced margins.
Key Financial Metrics
Is NNN Expensive or Cheap?
P/E Ratio
NNN trades at 21.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NNN's PEG of -45.55 indicates potential undervaluation.
Price to Book
The market values NNN REIT, Inc. at 1.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.33 times EBITDA. This is generally considered low.
How Well Does NNN Make Money?
Net Profit Margin
For every $100 in sales, NNN REIT, Inc. keeps $42.08 as profit after all expenses.
Operating Margin
Core operations generate 63.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.89 in profit for every $100 of shareholder equity.
ROA
NNN REIT, Inc. generates $4.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NNN REIT, Inc. generates strong operating cash flow of $671.04M, reflecting robust business health.
Free Cash Flow
NNN REIT, Inc. generates strong free cash flow of $671.04M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.53 in free cash annually.
FCF Yield
NNN converts 7.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-45.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NNN Stacks Against Its Sector Peers
| Metric | NNN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.80 | 23.43 | Neutral |
| ROE | 8.89% | 685.00% | Weak |
| Net Margin | 42.08% | 2002.00% | Weak |
| Debt/Equity | 1.09 | -21.97 (disorted) | Distorted |
| Current Ratio | 0.19 | 11.11 | Weak Liquidity |
| ROA | 4.16% | 166.00% | Weak |
NNN outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NNN REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.24%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
18.92%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
13.56%
Industry Style: Income, Inflation Hedge, REIT
High Growth