Spirit Realty Capital, Inc.
Spirit Realty Capital, Inc. Fundamental Analysis
Spirit Realty Capital, Inc. (SRC) shows moderate financial fundamentals with a PE ratio of 20.25, profit margin of 40.47%, and ROE of 6.67%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SRC's fundamental strength across five key dimensions:
Efficiency Score
WeakSRC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSRC trades at attractive valuation levels.
Growth Score
ModerateSRC shows steady but slowing expansion.
Financial Health Score
ModerateSRC shows balanced financial health with some risks.
Profitability Score
ModerateSRC maintains healthy but balanced margins.
Key Financial Metrics
Is SRC Expensive or Cheap?
P/E Ratio
SRC trades at 20.25 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SRC's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Spirit Realty Capital, Inc. at 1.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.46 times EBITDA. This is generally considered low.
How Well Does SRC Make Money?
Net Profit Margin
For every $100 in sales, Spirit Realty Capital, Inc. keeps $40.47 as profit after all expenses.
Operating Margin
Core operations generate 46.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.67 in profit for every $100 of shareholder equity.
ROA
Spirit Realty Capital, Inc. generates $3.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spirit Realty Capital, Inc. generates strong operating cash flow of $511.78M, reflecting robust business health.
Free Cash Flow
Spirit Realty Capital, Inc. generates strong free cash flow of $418.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.96 in free cash annually.
FCF Yield
SRC converts 6.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SRC Stacks Against Its Sector Peers
| Metric | SRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.25 | 24.23 | Better (Cheaper) |
| ROE | 6.67% | 659.00% | Weak |
| Net Margin | 40.47% | 4497.00% | Weak |
| Debt/Equity | 0.78 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.30 | 13.87 | Weak Liquidity |
| ROA | 3.37% | -1390.00% (disorted) | Weak |
SRC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spirit Realty Capital, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT