NYSE:STAG

Stock Analysis Report

Executive Summary

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership and operation of single-tenant, industrial properties throughout the United States.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has STAG Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

13.9%

STAG

15.8%

US REITs

7.2%

US Market


1 Year Return

-22.7%

STAG

-20.1%

US REITs

-10.4%

US Market

Return vs Industry: STAG underperformed the US REITs industry which returned -19.8% over the past year.

Return vs Market: STAG underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

STAGIndustryMarket
7 Day13.9%15.8%7.2%
30 Day-18.4%-19.2%-12.6%
90 Day-27.7%-24.6%-19.4%
1 Year-18.9%-22.7%-16.8%-20.1%-8.5%-10.4%
3 Year4.6%-10.4%-0.7%-13.1%15.8%8.3%
5 Year31.2%-1.6%13.3%-10.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is STAG Industrial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is STAG Industrial 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: STAG ($22.66) is trading below our estimate of fair value ($66.98)

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


Price To Earnings Ratio

PE vs Industry: STAG is poor value based on its PE Ratio (64.9x) compared to the REITs industry average (24.1x).

PE vs Market: STAG is poor value based on its PE Ratio (64.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: STAG is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: STAG is overvalued based on its PB Ratio (1.5x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is STAG Industrial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAG's forecast earnings growth (13.4% per year) is above the savings rate (1.7%).

Earnings vs Market: STAG's earnings (13.4% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: STAG's revenue (12.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: STAG's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STAG's Return on Equity is forecast to be low in 3 years time (2.2%).


Next Steps

Past Performance

How has STAG Industrial performed over the past 5 years?

60.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAG has high quality earnings.

Growing Profit Margin: STAG's current net profit margins (10.8%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: STAG has become profitable over the past 5 years, growing earnings by 60.7% per year.

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

Earnings vs Industry: STAG had negative earnings growth (-46.8%) over the past year, making it difficult to compare to the REITs industry average (5%).


Return on Equity

High ROE: STAG's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is STAG Industrial'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: STAG has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is STAG Industrial's current dividend yield, its reliability and sustainability?

6.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STAG's dividend (6.35%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: STAG's dividend (6.35%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

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

Growing Dividend: STAG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.7%), STAG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STAG's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Ben Butcher (66yo)

9.67s

Tenure

US$4,302,513

Compensation

Mr. Benjamin S. Butcher, also known as Ben, has been the Chief Executive Officer, President and Chairman of the Board of STAG Industrial, Inc. since July 2010 and is a Founder. Mr. Butcher served as Princi ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD4.30M) is about average for companies of similar size in the US market ($USD5.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Butcher
Chairman9.67yrsUS$4.30m0.048% $1.6m
William Crooker
CFO, Executive VP & Treasurer4.17yrsUS$2.05mno data
Stephen Mecke
Executive VP & COO9.17yrsUS$2.26m0.0013% $45.8k
Jeffrey Sullivan
Executive VP5.17yrsUS$1.46mno data
David King
Executive VP & Director of Real Estate Operations8.83yrsUS$1.47m0.00034% $11.6k
Jaclyn Paul
Senior VP & Chief Accounting Officerno datano data0.018% $614.2k
Matts Pinard
Senior Vice President of Capital Markets & Investor Relations1.17yrsno datano data
Andrea Gillespie
Director of Human Resources0.25yrno datano data
David Barker
Senior VP & Portfolio Manager4.25yrsno datano data
Andrew LeStage
Senior VP & Head of Customer Solutions4.25yrsno datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: STAG's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Benjamin Butcher
Chairman9.67yrsUS$4.30m0.048% $1.6m
Christopher Marr
Independent Director7.58yrsUS$147.50k0.011% $366.2k
Hans Weger
Independent Director8.83yrsUS$155.00k0.020% $696.1k
Virgis Colbert
Independent Director6.17yrsUS$140.00k0.0083% $282.5k
Jeffrey Furber
Independent Director8.83yrsUS$150.00k0.028% $956.8k
Larry Guillemette
Lead Independent Directorno dataUS$155.00k0.021% $709.1k
Francis Jacoby
Independent Director8.83yrsUS$140.00k0.017% $585.8k
Michelle Dilley
Independent Director2yrsUS$140.00k0.0022% $73.4k
Jit Chin
Independent Director0.17yrno datano data

8.2yrs

Average Tenure

58yo

Average Age

Experienced Board: STAG's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STAG 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 21.3%.


Top Shareholders

Company Information

STAG Industrial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: STAG Industrial, Inc.
  • Ticker: STAG
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.416b
  • Market Cap: US$3.396b
  • Shares outstanding: 150.74m
  • Website: https://www.stagindustrial.com

Number of Employees


Location

  • STAG Industrial, Inc.
  • One Federal Street
  • 23rd Floor
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STAGNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2011
SW6DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2011
STAG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2011
0L98LSE (London Stock Exchange)YesCommon StockGBUSDApr 2011
SW6BRSE (Berne Stock Exchange)YesCommon StockCHCHFApr 2011
STAG.PRCNYSE (New York Stock Exchange)RED PFD SER CUSUSDMar 2016

Biography

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership and operation of single-tenant, industrial properties throughout the United States. As of September 30, 2019, the Company's portfolio consists of 430 buildings in 37 states with approximately 86.0 million rentable square feet. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:32
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.