Four Corners Property Trust (NYSE:FCPT) - Share price, News & Analysis

Q: What is the Fair Price of FCPT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FCPT ($27.08) is trading below our estimate of [[fair value]] ($63.39)

FCPT fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	3/6
Financial Health	2/6
Dividends	4/6

FCPT Stock Overview

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties.

Rewards

Trading at 57.3% below our estimate of its fair value

Earnings are forecast to grow 9.28% per year

Earnings have grown 0.8% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Shareholders have been diluted in the past year

Four Corners Property Trust Competitors

PotlatchDeltic

NasdaqGS:PCH

US$3.2b

Safehold

NYSE:SAFE

US$2.2b

Outfront Media

NYSE:OUT

US$2.9b

Uniti Group

NasdaqGS:UNIT

US$4.6b

Price History & Performance

Summary of all time highs, changes and price drops for Four Corners Property Trust
Historical stock prices
Current Share Price	US$27.08
52 Week High	US$30.13
52 Week Low	US$24.24
Beta	0.87
1 Month Change	-1.85%
3 Month Change	1.16%
1 Year Change	-1.74%
3 Year Change	-2.06%
5 Year Change	7.29%
Change since IPO	52.56%

Shareholder Returns

	FCPT	US REITs	US Market
7D	4.9%	6.3%	6.3%
1Y	-1.7%	-8.3%	-18.8%

Return vs Industry: FCPT exceeded the US REITs industry which returned -8.3% over the past year.

Return vs Market: FCPT exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is FCPT's price volatile compared to industry and market?
FCPT volatility
FCPT Average Weekly Movement	4.1%
REITs Industry Average Movement	4.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: FCPT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FCPT's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	461	Bill Lenehan	https://www.fcpt.com

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.

Four Corners Property Trust Fundamentals Summary

How do Four Corners Property Trust's earnings and revenue compare to its market cap?
FCPT fundamental statistics
Market Cap	US$2.19b
Earnings (TTM)	US$87.26m
Revenue (TTM)	US$207.03m

24.9x

P/E Ratio

10.5x

P/S Ratio

Is FCPT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FCPT income statement (TTM)
Revenue	US$207.03m
Cost of Revenue	US$32.47m
Gross Profit	US$174.56m
Other Expenses	US$87.30m
Earnings	US$87.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.09
Gross Margin	84.31%
Net Profit Margin	42.15%
Debt/Equity Ratio	99.1%

How did FCPT perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

80%

Payout Ratio

Does FCPT pay a reliable dividends?

See FCPT dividend history and benchmarks

When do you need to buy FCPT by to receive an upcoming dividend?
Four Corners Property Trust dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	0 days
Days until Dividend pay date	16 days

Does FCPT pay a reliable dividends?

See FCPT dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is FCPT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FCPT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FCPT. This is calculated by dividing FCPT's market cap by their current preferred multiple.
What is FCPT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.19b

FCPT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	14.9x
Enterprise Value/EBITDA	19.5x
PEG Ratio	2.7x

Price to Earnings Ratio vs Peers

How does FCPT's PE Ratio compare to its peers?

FCPT PE Ratio vs Peers

The above table shows the PE ratio for FCPT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.6x
PCH PotlatchDeltic	6.7x	-57.9%	US$3.2b
SAFE Safehold	26.9x	24.9%	US$2.2b
OUT Outfront Media	37.9x	36.3%	US$2.9b
UNIT Uniti Group	12.8x	2.4%	US$4.6b
FCPT Four Corners Property Trust	24.9x	9.3%	US$2.2b

Forward PE

Price-To-Earnings vs Peers: FCPT is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (21.1x).

Price to Earnings Ratio vs Industry

How does FCPT's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: FCPT is good value based on its Price-To-Earnings Ratio (24.9x) compared to the US REITs industry average (31.6x)

Price to Earnings Ratio vs Fair Ratio

What is FCPT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FCPT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.9x
Fair PE Ratio	35.9x

Price-To-Earnings vs Fair Ratio: FCPT is good value based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).

Share Price vs Fair Value

What is the Fair Price of FCPT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FCPT ($27.08) is trading below our estimate of fair value ($63.39)

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

Price to Earnings Growth Ratio

PEG Ratio: FCPT is poor value based on its PEG Ratio (2.7x)

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Future Growth

How is Four Corners Property Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCPT's forecast earnings growth (9.3% per year) is above the savings rate (1.9%).

Earnings vs Market: FCPT's earnings (9.3% per year) are forecast to grow slower than the US market (13.8% per year).

High Growth Earnings: FCPT's earnings are forecast to grow, but not significantly.

Revenue vs Market: FCPT's revenue (9.4% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: FCPT's revenue (9.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FCPT's Return on Equity is forecast to be low in 3 years time (9.5%).

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Past Performance

How has Four Corners Property Trust performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FCPT has high quality earnings.

Growing Profit Margin: FCPT's current net profit margins (42.1%) are lower than last year (44.9%).

Past Earnings Growth Analysis

Earnings Trend: FCPT's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: FCPT's earnings growth over the past year (10.9%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: FCPT earnings growth over the past year (10.9%) underperformed the REITs industry 69.5%.

Return on Equity

High ROE: FCPT's Return on Equity (9%) is considered low.

Discover strong past performing companies

Financial Health

How is Four Corners Property Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FCPT's short term assets ($132.6M) exceed its short term liabilities ($36.8M).

Long Term Liabilities: FCPT's short term assets ($132.6M) do not cover its long term liabilities ($986.1M).

Debt to Equity History and Analysis

Debt Level: FCPT's net debt to equity ratio (92%) is considered high.

Reducing Debt: FCPT's debt to equity ratio has increased from 92.1% to 99.1% over the past 5 years.

Debt Coverage: FCPT's debt is not well covered by operating cash flow (13%).

Interest Coverage: FCPT's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

What is Four Corners Property Trust current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FCPT's dividend (4.91%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: FCPT's dividend (4.91%) is in the top 25% of dividend payers in the US market (4.25%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FCPT has been paying a dividend for less than 10 years.

Growing Dividend: FCPT's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (80.5%), FCPT's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (85.4%), FCPT's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

4.4yrs

Average management tenure

CEO

Bill Lenehan (44 yo)

6.83yrs

Tenure

US$2,381,945

Compensation

Mr. William Howard Lenehan IV, also known as Bill, has been the Chief Executive Officer of Four Corners Property Trust, Inc. since joining it on August 17, 2015 and has also been its President and Member o...

CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FCPT's management team is considered experienced (4.4 years average tenure).

Board Members

Experienced Board: FCPT's board of directors are considered experienced (5.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: FCPT insiders have bought and sold the same number of shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31