NYSE:STAG

Stock Analysis Report

Executive Summary

STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


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


Market Performance


7 Day Return

1.5%

STAG

0.9%

US REITs

0.07%

US Market


1 Year Return

14.6%

STAG

21.8%

US REITs

8.9%

US Market

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

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


Shareholder returns

STAGIndustryMarket
7 Day1.5%0.9%0.07%
30 Day3.8%2.2%-0.3%
90 Day1.7%7.9%-1.6%
1 Year20.6%14.6%27.0%21.8%11.3%8.9%
3 Year59.5%36.6%37.5%20.2%46.3%36.8%
5 Year69.5%27.4%65.5%30.4%62.1%44.3%

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?

42.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STAG ($30.75) is trading below our estimate of fair value ($53.19)

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 (50.4x) compared to the REITs industry average (37.3x).

PE vs Market: STAG is poor value based on its PE Ratio (50.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: STAG is poor value based on its PEG Ratio (8.7x)


Price to Book Ratio

PB vs Industry: STAG is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (2.1x).


Next Steps

  • Explore potentially undervalued companies in the Real Estate industry.

Future Growth

How is STAG Industrial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAG's forecast earnings growth (5.8% per year) is above the savings rate (2.7%).

Earnings vs Market: STAG's earnings (5.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: STAG's revenue (12.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: STAG's revenue (12.3% 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 (1.9%).


Next Steps

Past Performance

How has STAG Industrial performed over the past 5 years?

63.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STAG has become profitable over the past 5 years, growing earnings by 63.9% per year.

Accelerating Growth: STAG's earnings growth over the past year (25.3%) is below its 5-year average (63.9% per year).

Earnings vs Industry: STAG earnings growth over the past year (25.3%) exceeded the REITs industry 16.9%.


Return on Equity

High ROE: STAG's Return on Equity (4%) is considered low.


Return on Assets

ROA vs Industry: STAG's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: STAG has significantly improved its Return on Capital Employed over the past 3 years.


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?

4.64%

Current Dividend Yield


Upcoming Dividend Payment

Purchase STAG Industrial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STAG's dividend (4.65%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STAG's dividend (4.65%) is in the top 25% of dividend payers in the US market (3.68%)

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 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.5%), 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 (0.5% payout ratio).


Next Steps

Management

What is the CEO of STAG Industrial's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Ben Butcher (66yo)

9.3yrs

Tenure

US$4,350,210

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 ($USD4.35M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Ben's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

50yo

Average Age

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


Board Age and Tenure

8.5yrs

Average Tenure

59yo

Average Age

Experienced Board: STAG's board of directors are considered experienced (8.5 years average tenure).


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

  • Stephen Mecke (57yo)

    Executive VP & COO

    • Tenure: 8.8yrs
    • Compensation: US$2.45m
  • Jeffrey Sullivan (50yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$1.48m
  • Ben Butcher (66yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$4.35m
  • Mike Chase (46yo)

    Senior Vice President of Acquisitions

    • Tenure: 0yrs
  • Brad Sweeney (48yo)

    Senior Vice President of Acquisitions

    • Tenure: 0yrs
  • David King (51yo)

    Executive VP & Director of Real Estate Operations

    • Tenure: 8.5yrs
    • Compensation: US$1.44m
  • Alan Simmons

    Senior VP & Assistant General Counsel

    • Tenure: 3.9yrs
  • Bill Crooker (39yo)

    CFO, Executive VP & Treasurer

    • Tenure: 3.8yrs
    • Compensation: US$2.03m
  • David Barker

    Senior VP & Regional Director

    • Tenure: 3.9yrs
  • Andrew LeStage

    Senior VP & Head of Customer Solutions

    • Tenure: 3.9yrs

Board Members

  • Chris Marr (54yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$147.48k
  • Hans Weger (55yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$154.98k
  • Virgis Colbert (79yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$139.98k
  • Jeff Furber (60yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$149.98k
  • Larry Guillemette (63yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$154.98k
  • Ben Butcher (66yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$4.35m
  • Francis Jacoby (58yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$139.98k
  • Michelle Dilley (47yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$130.28k

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$4.152b
  • Market Cap: US$4.100b
  • Shares outstanding: 135.01m
  • 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
STAG.PRCNYSE (New York Stock Exchange)RED PFD SER CUSUSDMar 2016

Biography

STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:04
End of Day Share Price2019/10/23 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.