STOR

STORE CapitalNYSE:STOR Stock Report

Market Cap

US$9.2b

7D

-1.8%

1Y

29.6%

Updated

20 Sep, 2021

Data

Company Financials +
STOR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends4/6

STOR Overview

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

Summary of all time highs, changes and price drops for STORE Capital
Historical stock prices
Current Share PriceUS$34.25
52 Week HighUS$25.23
52 Week LowUS$37.13
Beta1.23
1 Month Change-3.25%
3 Month Change-1.86%
1 Year Change29.64%
3 Year Change22.67%
5 Year Change12.55%
Change since IPO75.64%

Recent News & Updates

Aug 30

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.

Aug 10

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.

Jul 21

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.

Jul 08

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.

Shareholder Returns

STORUS REITsUS Market
7D-1.8%-1.4%-2.5%
1Y29.6%36.1%33.0%

Return vs Industry: STOR underperformed the US REITs industry which returned 36.1% over the past year.

Return vs Market: STOR underperformed the US Market which returned 33% over the past year.

Price Volatility

Is STOR's price volatile compared to industry and market?
STOR volatility
STOR Beta1.23
Industry Beta0.82
Market Beta1

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

FoundedEmployeesCEOWebsite
n/a119Mary Fedewahttps://www.storecapital.com

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.

Valuation

Is STORE Capital undervalued compared to its fair value and its price relative to the market?

50.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STOR ($34.25) is trading below our estimate of fair value ($68.46)

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 (41.1x) compared to the US REITs industry average (49.7x).

PE vs Market: STOR is poor value based on its PE Ratio (41.1x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: STOR is poor value based on its PEG Ratio (3.2x)


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).


Future Growth

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

13.0%

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%).


Past Performance

How has STORE Capital performed over the past 5 years?

14.9%

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.


Financial Health

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).


Balance Sheet


Dividend

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

4.50%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 21 2021Ex Dividend DateSep 29 2021Dividend Pay DateOct 15 202116 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STOR's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: STOR's dividend (4.5%) is in the top 25% of dividend payers in the US market (3.65%)


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).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Mary Fedewa (55 yo)

0.42

Tenure

US$5,342,494

Compensation

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 ($USD5.34M) is about average for companies of similar size in the US market ($USD6.43M).

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


Leadership Team

Experienced Management: STOR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: STOR's board of directors are considered experienced (5.1 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Company Information

STORE Capital Corporation's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • STORE Capital Corporation
  • 8377 East Hartford Drive
  • Suite 100
  • Scottsdale
  • Arizona
  • 85255
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:37
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
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.