NYSE:SMTA

Stock Analysis Report

Executive Summary

Spirit MTA REIT (NYSE:SMTA) is a net-lease REIT headquartered in Dallas, Texas.

Snowflake

Fundamentals

Unattractive dividend payer with worrying balance sheet.

Share Price & News

How has Spirit MTA REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

SMTA

-0.3%

US REITs

1.8%

US Market


1 Year Return

-23.5%

SMTA

19.5%

US REITs

7.3%

US Market

Return vs Industry: SMTA underperformed the US REITs industry which returned 19.5% over the past year.

Return vs Market: SMTA underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

SMTAIndustryMarket
7 Day0.2%-0.3%1.8%
30 Day1.4%0.9%-0.7%
90 Day3.3%7.0%0.06%
1 Year-1.1%-23.5%24.9%19.5%9.7%7.3%
3 Yearn/a34.5%17.4%46.3%36.9%
5 Yearn/a63.3%28.9%64.5%46.5%

Price Volatility Vs. Market

How volatile is Spirit MTA REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spirit MTA REIT undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Spirit MTA REIT is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Spirit MTA REIT has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SMTA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Spirit MTA REIT regulatory filings.
  • Explore potentially undervalued companies in the Real Estate industry.

Future Growth

How is Spirit MTA REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.6%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Spirit MTA REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Spirit MTA REIT performed over the past 5 years?

-101.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMTA is unprofitable, and losses have increased over the past 5 years at a rate of -101% per year.

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

Earnings vs Industry: SMTA is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (17.6%).


Return on Equity

High ROE: SMTA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: SMTA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SMTA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Spirit MTA REIT'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: SMTA has a high level of physical assets or inventory.

Debt Coverage by Assets: SMTA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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 SMTA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SMTA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -23.3% per year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Spirit MTA REIT's current dividend yield, its reliability and sustainability?

14.35%

Current Dividend Yield


Dividend Yield vs Market

company14.4%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMTA's dividend (14.35%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SMTA's dividend (14.35%) is in the top 25% of dividend payers in the US market (3.72%)

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

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


Current Payout to Shareholders

Dividend Coverage: SMTA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Spirit MTA REIT's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Ricardo Rodriguez (42yo)

1.4yrs

Tenure

0

Mr. Ricardo Jonas Rodriguez has been Chief Executive Officer, President, Chief Financial Officer and Treasurer at Spirit MTA REIT since May 15, 2018. Mr. Rodriguez joined Spirit Master Trust from Morgan St ...


Board Age and Tenure

1.4yrs

Average Tenure

56.5yo

Average Age

Experienced Board: SMTA's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Jay Young (49yo)

    Secretary

    • Tenure: 0yrs
  • Ricardo Rodriguez (42yo)

    CEO, President

    • Tenure: 1.4yrs
  • Cara Smith

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Steven Panagos (57yo)

    Independent Trustee

    • Tenure: 1.4yrs
    • Compensation: US$544.84k
  • Steve Shepsman (67yo)

    Independent Trustee

    • Tenure: 1.4yrs
    • Compensation: US$544.84k
  • Tom Sullivan (56yo)

    Independent Trustee

    • Tenure: 1.4yrs
    • Compensation: US$544.84k
  • Richard Stockton (48yo)

    Lead Independent Trustee

    • Tenure: 1.4yrs
    • Compensation: US$541.84k

Company Information

Spirit MTA REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spirit MTA REIT
  • Ticker: SMTA
  • Exchange: NYSE
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: US$372.902m
  • Shares outstanding: 43.16m
  • Website: https://www.spiritmastertrust.com

Location

  • Spirit MTA REIT
  • 2727 North Harwood Drive
  • Suite 300
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTANYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2018

Biography

Spirit MTA REIT (NYSE:SMTA) is a net-lease REIT headquartered in Dallas, Texas. SMTA owns one of the largest, most diversified and seasoned commercial real estate backed master funding vehicles. SMTA is ma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.