NYSE:SRC

Stock Analysis Report

Executive Summary

Spirit Realty Capital, Inc. (NYSE: SRC) is a premier net-lease REIT that primarily invests in high-quality, operationally essential real estate, subject to long-term, net leases.

Snowflake

Fundamentals

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

SRC

0.9%

US REITs

0.07%

US Market


1 Year Return

24.3%

SRC

21.8%

US REITs

8.9%

US Market

Return vs Industry: SRC exceeded the US REITs industry which returned 21.8% over the past year.

Return vs Market: SRC exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

SRCIndustryMarket
7 Day1.7%0.9%0.07%
30 Day2.3%2.2%-0.3%
90 Day12.6%7.9%-1.6%
1 Year32.2%24.3%27.0%21.8%11.3%8.9%
3 Year12.2%-19.8%37.5%20.2%46.3%36.8%
5 Year34.5%-15.1%65.5%30.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Spirit Realty Capital undervalued compared to its fair value and its price relative to the market?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRC ($49.23) is trading below our estimate of fair value ($83.8)

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


Price To Earnings Ratio

PE vs Industry: SRC is good value based on its PE Ratio (25.8x) compared to the REITs industry average (37.3x).

PE vs Market: SRC is poor value based on its PE Ratio (25.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SRC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SRC is good value based on its PB Ratio (1.6x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Spirit Realty Capital forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRC's earnings are forecast to decline over the next 3 years (-7.4% per year).

Earnings vs Market: SRC's earnings are forecast to decline over the next 3 years (-7.4% per year).

High Growth Earnings: SRC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SRC's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SRC's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRC's Return on Equity is forecast to be low in 3 years time (3.6%).


Next Steps

Past Performance

How has Spirit Realty Capital performed over the past 5 years?

37.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SRC has become profitable over the past 5 years, growing earnings by 37.9% per year.

Accelerating Growth: SRC's earnings growth over the past year (67.9%) exceeds its 5-year average (37.9% per year).

Earnings vs Industry: SRC earnings growth over the past year (67.9%) exceeded the REITs industry 16.9%.


Return on Equity

High ROE: SRC's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: SRC has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: SRC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Spirit Realty Capital'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: SRC has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Spirit Realty Capital's current dividend yield, its reliability and sustainability?

5.08%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SRC's dividend (5.08%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SRC's dividend (5.08%) is in the top 25% of dividend payers in the US market (3.68%)

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

Growing Dividend: SRC has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.8%), SRC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.7% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jackson Hsieh (58yo)

2.4yrs

Tenure

US$12,103,234

Compensation

Mr. Jackson Hsieh has been the President, Chief Executive Officer & Director of Spirit Realty Capital since 2019. Mr. Hsieh has been the President and Chief Executive Officer of Spirit Realty Capital, Inc. ...


CEO Compensation Analysis

Compensation vs. Market: Jackson has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.6yrs

Average Tenure

46.5yo

Average Age

Experienced Management: SRC's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: SRC's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: SRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$487,57209 Aug 19
Jay Young
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares10,648
Max PriceUS$45.79
BuyUS$99,99503 Dec 18
Michael Hughes
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,721
Max PriceUS$36.75
SellUS$1,685,28816 Nov 18
Jackson Hsieh
EntityIndividual
Role
Chief Executive Officer
President
Shares42,957.4
Max PriceUS$40.50

Ownership Breakdown


Management Team

  • Michael Hughes (44yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$2.88m
  • Jackson Hsieh (58yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$12.10m
  • Daniel Rosenberg (41yo)

    Senior VP & Head of Acquisitions

    • Tenure: 2.8yrs
  • Jay Young (49yo)

    Executive VP

    • Tenure: 3.5yrs
    • Compensation: US$2.20m
  • Prakash Parag (44yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.4yrs
  • Pierre Revol

    Senior VP and Head of Strategic Planning & Investor Relations

    • Tenure: 0yrs
  • Ken Heimlich (53yo)

    Executive VP & Head of Asset Management

    • Tenure: 2.6yrs
    • Compensation: US$2.15m
  • Rochelle Thomas

    Senior VP & Deputy General Counsel

    • Tenure: 0.8yrs

Board Members

  • Sheli Rosenberg (77yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$184.25k
  • Kevin Charlton (53yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$189.25k
  • Tom Senkbeil (69yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$179.25k
  • Rick Gilchrist (73yo)

    Chairman of the Board & Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$308.00k
  • Nick Shepherd (60yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$183.00k
  • Todd Dunn (56yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$189.25k
  • Diana Laing (64yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$157.50k
  • Jackson Hsieh (58yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$12.10m
  • Elizabeth Frank (50yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Spirit Realty Capital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spirit Realty Capital, Inc.
  • Ticker: SRC
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: US$4.436b
  • Shares outstanding: 90.11m
  • Website: https://www.spiritrealty.com

Number of Employees


Location

  • Spirit Realty Capital, Inc.
  • 2727 North Harwood Street
  • Suite 300
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRCNYSE (New York Stock Exchange)YesNew Common stockUSUSDJul 2013
21S1DB (Deutsche Boerse AG)YesNew Common stockDEEURJul 2013
0A1MLSE (London Stock Exchange)YesNew Common stockGBEURJul 2013
SRC.PRANYSE (New York Stock Exchange)6% PFD SER AUSUSDSep 2017

Biography

Spirit Realty Capital, Inc. (NYSE: SRC) is a premier net-lease REIT that primarily invests in high-quality, operationally essential real estate, subject to long-term, net leases. Over the past decade, Spir ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:22
End of Day Share Price2019/10/22 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.