Four Corners Property (FCPT) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: 5.16%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.52
• Revenue Growth: 6.96%
• EPS Growth: -0.41%
• Country: US
• Employees: 536
• Sector: Real Estate
• Sector Strength: 71
• Industry: REIT - Retail
• EPS (TTM): 1.07
• Shares Outstanding: 99,970,870
• 10 Day Avg. Volume: 1,218,476
• 30 Day Avg. Volume: 1,112,116
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.48
• Price to Cash Flow (P/CF): 21.00
• P/FCF Ratio: 18.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.33
• Price Target Upside: 11.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Overall, Four Corners Property Trust scores well, driven by strong financial performance and strategic corporate actions. The company's robust acquisition strategy and solid balance sheet enhance its potential for future growth. While the stock's valuation is high, the attractive dividend yield and prudent management decisions provide a counterbalance. Technical indicators suggest a stable market position, and the recent earnings call highlights resilience in challenging conditions.

Positive Factors

Financial Performance

Four Corners Property Trust reported in-line earnings, while a declining cost of capital prompted management to return to deployment mode with a large portfolio investment.

Portfolio Quality

The portfolio quality, measured by investment grade rating and rent coverage, is viewed in a positive light, and the company’s recent execution within the deployment markets is impressive.

Negative Factors

Macroeconomic Risks

There could be a more negative stance on FCPT if a worsening macro causes restaurant sector performance to deteriorate or if interest rates remain elevated, stalling progress on accretive investments.

Valuation

Shares currently trade at one of the highest multiples in the net-lease REIT sector, which suggests that the growth potential and high-quality portfolio are currently priced in.

Four Corners Property Business Overview & Revenue Model

Company Description

Four Corners Property Trust (FCPT) is a real estate investment trust (REIT) focused on acquiring and leasing high-quality, strategically located restaurant and retail properties. FCPT operates primarily in the retail property sector, with a strong emphasis on properties with national or regional tenants. The company's portfolio includes a diverse range of properties, ensuring a stable income stream and growth potential.

How the Company Makes Money

FCPT makes money primarily through leasing its properties to tenants, generating steady rental income. The company's revenue model is based on long-term, triple-net leases, where tenants are responsible for paying property taxes, insurance, and maintenance costs in addition to rent. This structure minimizes operational expenses for FCPT and ensures predictable cash flow. FCPT's key revenue streams include rental income from its diverse portfolio of restaurant and retail properties. The company also benefits from strategic acquisitions and partnerships with established restaurant and retail brands, enhancing its property portfolio and increasing potential earnings.

Four Corners Property Financial Statement Overview

Summary

Four Corners Property exhibits strong financial health characterized by excellent profitability margins, a robust balance sheet with zero debt, and solid cash flow management. However, there are some concerns about the decrease in operating cash flow and negative free cash flow growth rate.

Income Statement

Four Corners Property demonstrates strong profitability with a gross profit margin of 80.1% and a net profit margin of 37.5% for TTM. The company shows a healthy revenue growth rate of 6.97% from 2023 to 2024, indicating robust business expansion. EBIT and EBITDA margins are also impressive at 55.7% and 66.8%, respectively, highlighting effective cost management.

Balance Sheet

The balance sheet is very strong, with an equity ratio of 54.7% for TTM, indicating financial stability and low leverage. The company has no debt in the current period, which reduces financial risk. Return on Equity is commendable at 6.9%, showing efficient use of equity capital.

Cash Flow

Four Corners Property's cash flow is solid, with a free cash flow to net income ratio of 1.10 for TTM, demonstrating good cash generation relative to profits. However, the operating cash flow decreased from the previous year, indicating potential challenges in cash management. The free cash flow growth rate is negative, which could be a concern if continued.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
268.07M	250.61M	223.19M	199.38M	170.94M
	Gross Profit
256.50M	210.35M	187.38M	169.78M	151.35M
	EBIT
149.17M	136.94M	126.41M	117.33M	107.05M
	EBITDA
204.65M	188.97M	167.88M	152.16M	136.48M
	Net Income Common Stockholders
100.47M	95.34M	97.77M	85.58M	77.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.08M	16.32M	26.30M	6.30M	11.06M
	Total Assets
2.65B	2.45B	2.20B	1.90B	1.67B
	Total Debt
1.14B	1.12B	1.00B	883.21M	759.94M
	Net Debt
1.14B	1.10B	974.32M	876.91M	748.87M
	Total Liabilities
1.20B	1.19B	1.06B	939.09M	823.68M
	Stockholders Equity
1.45B	1.26B	1.14B	961.67M	841.44M
Cash Flow		Free Cash Flow
144.10M	165.10M	142.00M	122.42M	91.46M
	Operating Cash Flow
144.10M	165.10M	142.00M	122.42M	91.46M
	Investing Cash Flow
-272.92M	-312.79M	-270.90M	-264.92M	-229.07M
	Financing Cash Flow
108.11M	146.18M	148.90M	137.74M	143.60M

Four Corners Property Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCPT, the sentiment is Negative. The current price of 27.11 is below the 20-day moving average (MA) of 27.78, below the 50-day MA of 27.81, and below the 200-day MA of 27.28, indicating a bearish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCPT.

Four Corners Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCPT	79 Outperform	$2.67B	24.98	7.43%	5.16%	6.96%	-0.41%
LXP	72 Outperform	$2.20B	57.11	2.04%	7.02%	5.27%	58.15%
APLE	72 Outperform	$2.74B	12.93	6.50%	8.37%	6.52%	14.45%
OUT	65 Neutral	$2.37B	9.17	34.53%	6.29%	0.57%	―
Sector *	61 Neutral	$4.24B	15.87	-3.65%	12.20%	6.29%	-21.37%
AKR	60 Neutral	$2.28B	98.89	1.11%	4.07%	1.69%	-7.10%
HIW	55 Neutral	$2.85B	28.10	4.27%	7.57%	-0.98%	-32.02%

Four Corners Property Corporate Events

Four Corners Property Expands Portfolio with New Acquisitions

In March 2025, Four Corners Property Trust announced its strategic financial and operational achievements, including the acquisition of 64 properties for $199 million at a 7.1% cap rate and the extension of its credit facility. The company has maintained high rent collection rates and continues to diversify its portfolio, reducing reliance on major brands like Olive Garden and LongHorn. Despite market volatility and macroeconomic uncertainties under the new administration, FCPT has positioned itself as a stable entity with significant liquidity and a defensive portfolio, avoiding sectors with higher risk exposure.

Four Corners Property Reports Resilient 2024 Financial Results

On February 12, 2025, Four Corners Property Trust, Inc. reported its financial results for the fourth quarter and full year of 2024. The company showed a disciplined approach to capital raising and investment, acquiring $265 million worth of properties leased to national brands. Despite market volatility, FCPT maintained a low leverage profile while extending debt maturities and increasing liquidity. The company achieved a 99.4% rent collection rate for the fourth quarter and a 99.8% rate for the entire year. Rental revenue for the fourth quarter rose by 5.3% to $60.7 million, and net income attributable to common shareholders was $26.2 million. FCPT’s Adjusted Funds from Operations (AFFO) per diluted share increased to $0.44 in the fourth quarter, reflecting a stable financial performance amid challenging market conditions.

Four Corners Property Secures $940M Credit for Growth

On January 31, 2025, Four Corners Property Trust, Inc. entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with JPMorgan Chase Bank, N.A. and other lenders. The agreement increases the total facility size to $940 million, including a $350 million revolving credit facility and a new $225 million term loan. This strategic financial move positions FCPT well for future growth, providing new capital to fund investments and ensuring no debt maturities for nearly two years. The company has also entered into interest rate swaps to manage the cost of the additional term loan. This development underscores FCPT’s strong banking relationships and favorable borrowing conditions, highlighting its readiness to capitalize on market opportunities.