NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$5.3b

Last Updated

2021/05/18 03:54 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Reasonable growth potential 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SRC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

SRC

-1.3%

US REITs

-0.6%

US Market


1 Year Return

59.8%

SRC

34.1%

US REITs

46.0%

US Market

Return vs Industry: SRC exceeded the US REITs industry which returned 34.1% over the past year.

Return vs Market: SRC exceeded the US Market which returned 46% over the past year.


Shareholder returns

SRCIndustryMarket
7 Day-1.9%-1.3%-0.6%
30 Day3.4%1.1%-1.8%
90 Day11.1%9.4%0.2%
1 Year70.8%59.8%39.6%34.1%48.4%46.0%
3 Year45.4%6.4%43.8%26.5%60.5%50.4%
5 Year28.4%-19.3%54.0%23.1%125.9%100.9%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRC ($45.87) is trading below our estimate of fair value ($99.49)

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 (163.9x) compared to the US REITs industry average (43.7x).

PE vs Market: SRC is poor value based on its PE Ratio (163.9x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: SRC is poor value based on its PEG Ratio (7x)


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 (1.8x).


Future Growth

How is Spirit Realty Capital forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRC's forecast earnings growth (23.4% per year) is above the savings rate (2%).

Earnings vs Market: SRC's earnings (23.4% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRC's revenue (9% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: SRC's revenue (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 (3.8%).


Past Performance

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

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRC has a large one-off loss of $61.2M impacting its March 31 2021 financial results.

Growing Profit Margin: SRC's current net profit margins (6.1%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: SRC's earnings have grown by 2.1% per year over the past 5 years.

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 (-71.3%) over the past year, making it difficult to compare to the REITs industry average (-10.5%).


Return on Equity

High ROE: SRC's Return on Equity (1.2%) is considered low.


Financial Health

How is Spirit Realty Capital's financial position?


Financial Position Analysis

Short Term Liabilities: SRC's short term assets ($416.4M) exceed its short term liabilities ($126.5M).

Long Term Liabilities: SRC's short term assets ($416.4M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: SRC's debt to equity ratio (82.6%) is considered high.

Reducing Debt: SRC's debt to equity ratio has reduced from 117.2% to 82.6% over the past 5 years.

Debt Coverage: SRC's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: SRC's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

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

5.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRC's dividend (5.45%) is higher than the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: SRC's dividend (5.45%) is in the top 25% of dividend payers in the US market (3.41%)


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 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.7%), SRC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRC's dividends in 3 years are forecast to be covered by earnings (78.3% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jackson Hsieh (59 yo)

4yrs

Tenure

US$8,243,447

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 ($USD8.24M) is about average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

Experienced Management: SRC's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: SRC's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SRC insiders have only sold 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 11.7%.


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$5.273b
  • Shares outstanding: 114.96m
  • 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


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 September 30, 202...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 03:54
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.