NasdaqGS:AFIN

Stock Analysis Report

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Executive Summary

American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the Nasdaq focused on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution related commercial real estate properties in the U.S. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has American Finance Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AFIN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: AFIN's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-8.7%

AFIN

-1.2%

US REITs

0.7%

US Market


1 Year Return

-48.0%

AFIN

-8.7%

US REITs

22.2%

US Market

Return vs Industry: AFIN underperformed the US REITs industry which returned -7.6% over the past year.

Return vs Market: AFIN underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

AFINIndustryMarket
7 Day-8.7%-1.2%0.7%
30 Day28.7%6.9%11.8%
90 Day8.6%1.6%8.6%
1 Year-43.2%-48.0%-4.9%-8.7%25.0%22.2%
3 Yearn/a19.1%5.0%49.4%39.5%
5 Yearn/a48.7%18.9%100.2%78.1%

Long-Term Price Volatility Vs. Market

How volatile is American Finance Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Finance Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFIN ($7.57) is trading below our estimate of fair value ($16.64)

Significantly Below Fair Value: AFIN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AFIN is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: AFIN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AFIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AFIN is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is American Finance Trust forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFIN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AFIN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AFIN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AFIN's revenue (8.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: AFIN's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AFIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Finance Trust performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFIN is currently unprofitable.

Growing Profit Margin: AFIN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AFIN is unprofitable, but has reduced losses over the past 5 years at a rate of 2.7% per year.

Accelerating Growth: Unable to compare AFIN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AFIN is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (2%).


Return on Equity

High ROE: AFIN has a negative Return on Equity (-1.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is American Finance Trust's financial position?


Financial Position Analysis

Short Term Liabilities: AFIN's short term assets ($190.1M) exceed its short term liabilities ($40.0M).

Long Term Liabilities: AFIN's short term assets ($190.1M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: AFIN's debt to equity ratio (111.5%) is considered high.

Reducing Debt: AFIN's debt to equity ratio has increased from 94.8% to 111.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AFIN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AFIN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 0.4% per year.


Next Steps

Dividend

What is American Finance Trust current dividend yield, its reliability and sustainability?

11.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFIN's dividend (11.23%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: AFIN's dividend (11.23%) is in the top 25% of dividend payers in the US market (4.14%)


Stability and Growth of Payments

Stable Dividend: AFIN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AFIN has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127.1%), AFIN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFIN's dividends in 3 years are forecast to be covered by earnings (78.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average board tenure


CEO

Mike Weil (53 yo)

5.08yrs

Tenure

US$27,664

Compensation

Mr. Edward Michael Weil, Jr., also known as Mike, has been President and Chief Executive Officer at American Realty Capital Healthcare Trust III, Inc. since September 12, 2018. He has been Chief Executive ...


Board Members

NamePositionTenureCompensationOwnership
Edward Weil
Chairman5.08yrsUS$27.66k0.061%
$ 504.7k
Leslie Michelson
Independent Director3.83yrsUS$217.23k0.058%
$ 480.5k
Stanley Perla
Independent Director7.67yrsUS$232.68k0.051%
$ 420.6k
Edward Rendell
Independent Director3.83yrsUS$207.23k0.053%
$ 435.0k
Lisa Kabnick
Lead Independent Director2.75yrsUS$322.55k0.16%
$ 1.3m

3.8yrs

Average Tenure

69yo

Average Age

Experienced Board: AFIN's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Finance Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Finance Trust, Inc.
  • Ticker: AFIN
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$823.258m
  • Market Cap: US$820.863m
  • Shares outstanding: 108.61m
  • Website: https://www.americanfinancetrust.com

Location

  • American Finance Trust, Inc.
  • 650 Fifth Avenue
  • 30th Floor
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFINNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 2018
3FGDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2018
AFIN.PNasdaqGS (Nasdaq Global Select)7.50% PFD AUSUSDMar 2019

Biography

American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the Nasdaq focused on acquiring and managing a diversified portfolio of primarily service-oriented an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:28
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.