NYSE:SRC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer and fair value.


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

Stable Share Price: SRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.3%

SRC

3.9%

US REITs

2.4%

US Market


1 Year Return

-23.7%

SRC

-7.4%

US REITs

9.2%

US Market

Return vs Industry: SRC underperformed the US REITs industry which returned -7.4% over the past year.

Return vs Market: SRC underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

SRCIndustryMarket
7 Day14.3%3.9%2.4%
30 Day24.5%9.7%10.2%
90 Day-24.8%-11.9%3.4%
1 Year-18.7%-23.7%-3.6%-7.4%11.6%9.2%
3 Year27.5%-8.8%16.0%1.8%33.7%24.9%
5 Year4.1%-34.8%47.1%17.0%59.7%41.8%

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?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRC ($34.01) is trading below our estimate of fair value ($55.68)

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


Price To Earnings Ratio

PE vs Industry: SRC is poor value based on its PE Ratio (30.8x) compared to the REITs industry average (28.9x).

PE vs Market: SRC is poor value based on its PE Ratio (30.8x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: SRC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SRC is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Spirit Realty Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRC's forecast earnings growth (13.8% per year) is above the savings rate (2.2%).

Earnings vs Market: SRC's earnings (13.8% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: SRC's revenue (1.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: SRC's revenue (1.9% 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 (3.9%).


Next Steps

Past Performance

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

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRC has a large one-off loss of $52.3M impacting its March 31 2020 financial results.

Growing Profit Margin: SRC's current net profit margins (19.6%) are lower than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: SRC has become profitable over the past 5 years, growing earnings by 21.4% per year.

Accelerating Growth: SRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SRC had negative earnings growth (-26.7%) over the past year, making it difficult to compare to the REITs industry average (5.2%).


Return on Equity

High ROE: SRC's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Spirit Realty Capital's financial position?


Financial Position Analysis

Short Term Liabilities: SRC's short term assets ($367.3M) exceed its short term liabilities ($111.2M).

Long Term Liabilities: SRC's short term assets ($367.3M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: SRC's debt to equity ratio (75.7%) is considered high.

Reducing Debt: SRC's debt to equity ratio has reduced from 128.4% to 75.7% over the past 5 years.

Debt Coverage: SRC's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: SRC's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

7.35%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SRC's dividend (7.35%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: SRC's dividend (7.35%) is in the top 25% of dividend payers in the US market (4.39%)


Stability and Growth of Payments

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 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82%), 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

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

3.3yrs

Average management tenure


CEO

Jackson Hsieh (58yo)

3.08yrs

Tenure

US$9,719,499

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's total compensation ($USD9.72M) is above average for companies of similar size in the US market ($USD5.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jackson Hsieh
President3.08yrsUS$9.72m0.33% $11.6m
Michael Hughes
Executive VP & CFO2.17yrsUS$2.45m0.035% $1.2m
Jay Young
Executive VP4.17yrsUS$1.95m0.029% $1.0m
Kenneth Heimlich
Executive VP & Head of Asset Management3.25yrsUS$2.07m0.027% $941.4k
Prakash Parag
Senior VP & Chief Accounting Officer4.08yrsno data0.016% $561.6k
Pierre Revol
Senior VP and Head of Strategic Planning & Investor Relationsno datano datano data
Erin Gilles
Director of Marketing & Communicationsno datano datano data
Daniel Rosenberg
Senior VP & Head of Acquisitions3.5yrsno datano data
Travis Carter
Vice President of Credit and Underwritingno datano datano data
Rochelle Thomas
Senior VP & Deputy General Counsel1.42yrsno datano data

3.3yrs

Average Tenure

46.5yo

Average Age

Experienced Management: SRC's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jackson Hsieh
President3.08yrsUS$9.72m0.33% $11.6m
Sheli Rosenberg
Independent Director6.92yrsUS$199.04k0.015% $528.6k
Kevin Charlton
Independent Director11.42yrsUS$207.47k0.016% $560.5k
Thomas Senkbeil
Independent Director6.92yrsUS$202.16k0.018% $615.5k
Richard Gilchrist
Chairman of the Board & Lead Independent Director3.08yrsUS$327.48k0.022% $782.8k
Nicholas Shepherd
Independent Director7.75yrsUS$209.97k0.016% $547.9k
Todd Dunn
Independent Director7.75yrsUS$203.72k0.017% $598.3k
Diana Laing
Independent Director1.83yrsUS$212.47k0.0051% $179.3k
Elizabeth Frank
Independent Director1.33yrsUS$313.69k0.0053% $184.2k

6.9yrs

Average Tenure

60yo

Average Age

Experienced Board: SRC's board of directors are considered experienced (6.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SRC insiders have bought more shares than they have sold 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 17.9%.


Top Shareholders

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$3.501b
  • Shares outstanding: 102.94m
  • 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 single-tenant, operationally essential real estate assets, subject to long-term leases. As of March 31, 2020, our diversified portfolio was comprised of 1,772 owned properties and 43 properties securing mortgage loans. Our owned properties, with an aggregate gross leasable area of 36.1 million square feet, are leased to 298 tenants across 48 states and 28 retail industries. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 04:22
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.