STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name.
STORE Capital Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$34.12|
|52 Week High||US$25.23|
|52 Week Low||US$37.13|
|1 Month Change||-2.63%|
|3 Month Change||-0.70%|
|1 Year Change||21.42%|
|3 Year Change||21.86%|
|5 Year Change||12.61%|
|Change since IPO||74.97%|
Recent News & Updates
STORE Capital: A Safe And Sound Investment
STORE Capital's real estate is primarily rented to service-oriented customers. There is less risk of non-paying customers. The company increased its revenue by 14.1% in the second quarter of 2021 compared to the same period in 2020. The valuation of the stock is reasonable. One can expect a pre-tax annual shareholder return of between 5% and 8%. STORE Capital is a share worth buying because of the stable characteristics of renting real estate to service-oriented customers.
STORE Capital: Great Business At Fair Price
At its current price levels, STORE Capital Corporation represents a REIT business with great quality for sale at a fair price. With its secular support and growth prospects, a decent long-term return is still expected. An analysis based on yield spread relative to the risk-free rate also suggests a manageable risk profile at the current price level.
Why I Sold Store Capital
STOR can be considered the "value investor" of the net lease sector. Its strong performance during the pandemic validated its business model. The 4.1% dividend yield appears very safe and primed for forward growth. I explain my reasons for selling and indicate the price I'd be interested to buy.
STORE Capital: A Middle-Market Leader In The Net Lease Space
STORE Capital has differentiated themselves in the way they focus on middle-market tenants, which can provide long-term opportunity for the company. The company survived the pandemic, and tenants are once again performing well in their properties. STOR is led by a strong management team, which continues to build a Fortress Balance Sheet.
|STOR||US REITs||US Market|
Return vs Industry: STOR underperformed the US REITs industry which returned 32.5% over the past year.
Return vs Market: STOR underperformed the US Market which returned 33.8% over the past year.
Stable Share Price: STOR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: STOR's weekly volatility (3%) has been stable over the past year.
About the Company
STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 2,500 property locations across the United States, substantially all of which are profit centers.
Is STORE Capital undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STOR ($34.12) is trading below our estimate of fair value ($68.48)
Significantly Below Fair Value: STOR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STOR is good value based on its PE Ratio (41x) compared to the US REITs industry average (50.1x).
PE vs Market: STOR is poor value based on its PE Ratio (41x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: STOR is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: STOR is good value based on its PB Ratio (1.8x) compared to the US REITs industry average (2x).
How is STORE Capital forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STOR's forecast earnings growth (13% per year) is above the savings rate (2%).
Earnings vs Market: STOR's earnings (13% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: STOR's earnings are forecast to grow, but not significantly.
Revenue vs Market: STOR's revenue (10.1% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: STOR's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STOR's Return on Equity is forecast to be low in 3 years time (5.8%).
How has STORE Capital performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STOR has high quality earnings.
Growing Profit Margin: STOR's current net profit margins (31.2%) are lower than last year (40%).
Past Earnings Growth Analysis
Earnings Trend: STOR's earnings have grown by 14.9% per year over the past 5 years.
Accelerating Growth: STOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STOR had negative earnings growth (-17.6%) over the past year, making it difficult to compare to the REITs industry average (3.9%).
Return on Equity
High ROE: STOR's Return on Equity (4.4%) is considered low.
How is STORE Capital's financial position?
Financial Position Analysis
Short Term Liabilities: STOR's short term assets ($644.8M) exceed its short term liabilities ($225.3M).
Long Term Liabilities: STOR's short term assets ($644.8M) do not cover its long term liabilities ($4.1B).
Debt to Equity History and Analysis
Debt Level: STOR's debt to equity ratio (78.5%) is considered high.
Reducing Debt: STOR's debt to equity ratio has reduced from 90.7% to 78.5% over the past 5 years.
Debt Coverage: STOR's debt is not well covered by operating cash flow (12.8%).
Interest Coverage: STOR's interest payments on its debt are not well covered by EBIT (2.3x coverage).
What is STORE Capital current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STOR's dividend (4.51%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: STOR's dividend (4.51%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, STOR has been paying a dividend for less than 10 years.
Growing Dividend: STOR's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (81.7%), STOR's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STOR's dividends in 3 years are forecast to be covered by earnings (72% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mary Fedewa (55 yo)
Ms. Mary B. Fedewa serves as the President at STORE Capital Corporation since September 2020 and also serves as its Chief Executive Officer since April 15, 2021. She served as the Chief Operating Officer o...
CEO Compensation Analysis
Compensation vs Market: Mary's total compensation ($USD5.34M) is about average for companies of similar size in the US market ($USD6.44M).
Compensation vs Earnings: Mary's compensation has been consistent with company performance over the past year.
Experienced Management: STOR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Experienced Board: STOR's board of directors are considered experienced (5.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STOR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.
STORE Capital Corporation's employee growth, exchange listings and data sources
- Name: STORE Capital Corporation
- Ticker: STOR
- Exchange: NYSE
- Founded: NaN
- Industry: Diversified REITs
- Sector: Real Estate
- Market Cap: US$9.250b
- Shares outstanding: 271.10m
- Website: https://www.storecapital.com
Number of Employees
- STORE Capital Corporation
- 8377 East Hartford Drive
- Suite 100
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:09|
|End of Day Share Price||2021/09/17 00:00|
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.