NYSE:STOR

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has STORE Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

STOR

0.9%

US REITs

0.07%

US Market


1 Year Return

30.9%

STOR

21.8%

US REITs

8.9%

US Market

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

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


Shareholder returns

STORIndustryMarket
7 Day2.3%0.9%0.07%
30 Day2.3%2.2%-0.3%
90 Day13.0%7.9%-1.6%
1 Year36.4%30.9%27.0%21.8%11.3%8.9%
3 Year58.8%38.3%37.5%20.2%46.3%36.8%
5 Yearn/a65.5%30.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STOR ($38.43) is trading below our estimate of fair value ($68.76)

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


Price To Earnings Ratio

PE vs Industry: STOR is poor value based on its PE Ratio (38.5x) compared to the REITs industry average (37.3x).

PE vs Market: STOR is poor value based on its PE Ratio (38.5x) 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 overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is STORE Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STOR's forecast earnings growth (12.3% per year) is above the savings rate (2.7%).

Earnings vs Market: STOR's earnings (12.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: STOR's revenue (12.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: STOR's revenue (12.1% 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 (5.6%).


Next Steps

Past Performance

How has STORE Capital performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STOR's earnings have grown significantly by 31.8% per year over the past 5 years.

Accelerating Growth: STOR's earnings growth over the past year (20.2%) is below its 5-year average (31.8% per year).

Earnings vs Industry: STOR earnings growth over the past year (20.2%) exceeded the REITs industry 16.9%.


Return on Equity

High ROE: STOR's Return on Equity (5.3%) is considered low.


Return on Assets

ROA vs Industry: STOR has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is STORE Capital'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: STOR has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STOR's dividend (3.64%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STOR's dividend (3.64%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.5%), STOR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STOR's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Chris Volk (62yo)

8.4yrs

Tenure

US$6,255,537

Compensation

Mr. Christopher H. Volk, also known as Chris, served as the Chief Executive Officer, President and Director of STORE Capital Corporation since May 2011 until 2019. Mr. Volk Co-Founded STORE Capital Corpora ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD6.26M) is about average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

5.0yrs

Average Tenure

53yo

Average Age

Experienced Management: STOR's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

62yo

Average Age

Experienced Board: STOR's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: STOR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$72,22312 Sep 19
Joseph Donovan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$36.11
BuyUS$88,58029 Nov 18
Joseph Donovan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$29.53

Ownership Breakdown


Management Team

  • Chris Volk (62yo)

    President

    • Tenure: 8.4yrs
    • Compensation: US$6.26m
  • Cathy Long (62yo)

    Executive VP

    • Tenure: 8.4yrs
    • Compensation: US$2.47m
  • Lisa Mueller

    Head of Investor Relations

    • Tenure: 0yrs
  • Mary Fedewa (53yo)

    Co-Founder

    • Tenure: 3.2yrs
    • Compensation: US$3.45m
  • Chad Freed (46yo)

    Executive VP

    • Tenure: 0.2yrs
  • Andrew Rosivach

    Executive Vice President of Underwriting

    • Tenure: 0.3yrs
  • Stacy LaFrance (48yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.7yrs

Board Members

  • Morton Fleischer (82yo)

    Non-Executive Chairman

    • Tenure: 8.4yrs
    • Compensation: US$400.00k
  • Chris Volk (62yo)

    President

    • Tenure: 8.4yrs
    • Compensation: US$6.26m
  • Quentin Smith (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$165.01k
  • Katy Rice (59yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$155.01k
  • Mary Fedewa (53yo)

    Co-Founder

    • Tenure: 3.2yrs
    • Compensation: US$3.45m
  • Einar Seadler (62yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$155.01k
  • Raj Shourie (45yo)

    Independent Director

    • Tenure: 0.7yrs
  • Joe Donovan (64yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$172.51k
  • Bill Hipp (64yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$155.01k

Company Information

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


Key Information

  • Name: STORE Capital Corporation
  • Ticker: STOR
  • Exchange: NYSE
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: US$8.841b
  • Shares outstanding: 230.05m
  • Website: https://www.storecapital.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STORNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2014
S76DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2014
0LA6LSE (London Stock Exchange)YesCommon StockGBUSDNov 2014
STOR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2014

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:31
End of Day Share Price2019/10/22 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.