STAG Industrial, Inc.
STAG Industrial, Inc. Fundamental Analysis
STAG Industrial, Inc. (STAG) shows moderate financial fundamentals with a PE ratio of 27.09, profit margin of 32.36%, and ROE of 7.85%. The company generates $0.9B in annual revenue with strong year-over-year growth of 10.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STAG's fundamental strength across five key dimensions:
Efficiency Score
WeakSTAG struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTAG shows balanced valuation metrics.
Growth Score
ExcellentSTAG delivers strong and consistent growth momentum.
Financial Health Score
ModerateSTAG shows balanced financial health with some risks.
Profitability Score
ModerateSTAG maintains healthy but balanced margins.
Key Financial Metrics
Is STAG Expensive or Cheap?
P/E Ratio
STAG trades at 27.09 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STAG's PEG of 0.67 indicates potential undervaluation.
Price to Book
The market values STAG Industrial, Inc. at 2.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.94 times EBITDA. This is generally considered low.
How Well Does STAG Make Money?
Net Profit Margin
For every $100 in sales, STAG Industrial, Inc. keeps $32.36 as profit after all expenses.
Operating Margin
Core operations generate 37.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.85 in profit for every $100 of shareholder equity.
ROA
STAG Industrial, Inc. generates $3.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
STAG Industrial, Inc. generates strong operating cash flow of $471.79M, reflecting robust business health.
Free Cash Flow
STAG Industrial, Inc. generates strong free cash flow of $430.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.25 in free cash annually.
FCF Yield
STAG converts 5.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How STAG Stacks Against Its Sector Peers
| Metric | STAG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.09 | 23.26 | Worse (Expensive) |
| ROE | 7.85% | 703.00% | Weak |
| Net Margin | 32.36% | -37590.00% (disorted) | Strong |
| Debt/Equity | 0.92 | -20.93 (disorted) | Distorted |
| Current Ratio | 0.41 | 16.35 | Weak Liquidity |
| ROA | 3.79% | -935.00% (disorted) | Weak |
STAG outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews STAG Industrial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.55%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
7.20%
Industry Style: Income, Inflation Hedge, REIT
GrowingFCF CAGR
24.93%
Industry Style: Income, Inflation Hedge, REIT
High Growth