NasdaqGS:AFIN

Stock Analysis Report

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.

Rewards

Trading at 45.9% below its fair value

Earnings are forecast to grow 111.31% per year

Risk Analysis

Dividend of 8.08% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

AFIN

-3.0%

US REITs

0.6%

US Market


1 Year Return

3.8%

AFIN

11.0%

US REITs

20.8%

US Market

Return vs Industry: AFIN underperformed the US REITs industry which returned 11% over the past year.

Return vs Market: AFIN underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

AFINIndustryMarket
7 Day-5.5%-3.0%0.6%
30 Day-8.2%-2.2%2.5%
90 Day1.9%-1.7%4.9%
1 Year13.9%3.8%15.7%11.0%23.5%20.8%
3 Yearn/a32.0%15.4%46.5%37.0%
5 Yearn/a49.0%18.1%64.6%46.5%

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?

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFIN ($13.62) is trading below our estimate of fair value ($25.17)

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 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 (0.9x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

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

111.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFIN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AFIN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AFIN's is expected to become profitable in the next 3 years.

Revenue vs Market: AFIN's revenue (5.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AFIN's revenue (5.9% 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?

-24.7%

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, and losses have increased over the past 5 years at a rate of -24.7% 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 (8.3%).


Return on Equity

High ROE: AFIN has a negative Return on Equity (-0.48%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Finance Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AFIN has a high level of physical assets or inventory.

Debt Coverage by Assets: AFIN's debt is not covered by short term assets (assets are 0.1x debt).


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, due to free cash flow being positive and growing by 6.3% per year.


Financial Institutions Analysis

Asset Level: AFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AFIN has a sufficient allowance for bad loans.

Low Risk Liabilities: AFIN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AFIN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AFIN has an appropriate level of bad loans.


Next Steps

Dividend

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

8.08%

Current Dividend Yield


Dividend Yield vs Market

company8.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years8.1%

Current dividend yield vs market & industry

Notable Dividend: AFIN's dividend (8.08%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: AFIN's dividend (8.08%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AFIN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AFIN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (113.7%), 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 thoroughly covered by earnings (0.8% payout ratio).


Next Steps

Management

What is the CEO of American Finance Trust's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Mike Weil (52yo)

4.1yrs

Tenure

US$341,664

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 Age and Tenure

2.8yrs

Average Tenure

68yo

Average Age

Experienced Board: AFIN's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: AFIN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$199,05202 Oct 19
Lisa Kabnick
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares14,310
Max PriceUS$13.91
BuyUS$1,042,78915 May 19
Lisa Kabnick
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares100,000
Max PriceUS$10.52
BuyUS$25,00714 Jan 19
Edward Weil
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,934
Max PriceUS$12.93

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.1%.


Management Team

  • Mike Weil (52yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: US$341.66k
  • Jason Slear

    Executive Vice President of Real Estate Acquisitions & Dispositions

    • Tenure: 0yrs
  • Boris Korotkin (48yo)

    Senior Vice President of Capital Markets & Corporate Strategy

    • Tenure: 0yrs
  • Katie Kurtz (39yo)

    CFO, Secretary & Treasurer

    • Tenure: 2.1yrs
  • Zach Pomerantz

    Senior VP of Asset Management

    • Tenure: 0yrs

Board Members

  • Leslie Michelson (68yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$565.96k
  • Stan Perla (75yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$562.84k
  • Ed Rendell (75yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$544.96k
  • Mike Weil (52yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: US$341.66k
  • Lisa Kabnick (63yo)

    Lead Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$619.81k

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$1.500b
  • Market Cap: US$1.453b
  • Shares outstanding: 106.82m
  • Website: https://www.americanfinancetrust.com

Location

  • American Finance Trust, Inc.
  • 405 Park Avenue
  • 3rd Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFINNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 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 Analysis2019/12/14 01:19
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.