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Stag Industrial (STAG)
NYSE:STAG
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Stag Industrial
(NYSE:STAG)79Outperform
Positive Factors
Financial Performance
The Q3 'Core' FFO of $0.60 was above the estimate of $0.59 and in line with consensus at $0.60, indicating strong financial performance.
Occupancy Management
STAG addressed 99.5% of expected 2024 leasing volume, suggesting effective management in maintaining occupancy levels.
Negative Factors
Development Challenges
The development pipeline's completed portfolio is 0% leased, indicating potential challenges in securing tenants for new developments.
Stag Industrial (STAG) vs. S&P 500 (SPY)
Market Cap
$6.96B
Dividend Yield4.05%
Average Volume (3M)1.27M
Price to Earnings (P/E)35.3
Beta (1Y)0.88
Revenue Growth8.41%
EPS Growth-2.96%
CountryUS
Employees91
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.04
Shares Outstanding186,564,770
10 Day Avg. Volume1,475,604
30 Day Avg. Volume1,273,952
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.89
Price to Cash Flow (P/CF)16.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$39.44Price Target Upside7.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Stag Industrial Business Overview & Revenue Model
Company DescriptionStag Industrial, Inc. (STAG) is a real estate investment trust (REIT) that focuses on the acquisition and operation of single-tenant industrial properties across the United States. The company primarily invests in warehouse and distribution facilities, aiming to provide its shareholders with a reliable and growing stream of income through its well-diversified portfolio and strategic asset management.
How the Company Makes MoneyStag Industrial generates revenue primarily through leasing its portfolio of industrial properties to tenants. The company's business model involves acquiring properties that are leased to single tenants, often under long-term net leases where tenants are responsible for paying the majority of property operating expenses. This structure ensures a steady income stream with predictable cash flows. STAG's revenue is further enhanced by strategically acquiring properties in key logistics hubs and growing markets, allowing the company to benefit from increasing demand for industrial space driven by trends such as e-commerce and supply chain optimization. Additionally, STAG may engage in property development or redevelopment to increase property value and rental income. The company also benefits from advantageous debt financing to acquire properties, enhancing its return on equity.
Stag Industrial Financial Statement Overview
Summary
Stag Industrial demonstrates strong financial performance with consistent revenue growth, improved profitability, elimination of debt, and robust cash flow. The company's balance sheet is solid, with no debt and strong equity, reducing financial risk. However, operational expenses have increased, impacting EBIT margins.Income Statement
Stag Industrial's income statement shows a strong growth trajectory with Total Revenue increasing consistently over the years, from $405.95M in 2019 to $767.38M in 2024. Gross Profit Margin remained stable as revenue and gross profit were equal in 2024. The Net Profit Margin improved significantly from negative in 2019 to a solid 24.63% in 2024, highlighting enhanced profitability. However, EBIT Margin decreased significantly in 2024 compared to previous years, indicating increased operational expenses. Overall, the company demonstrates strong revenue growth and profitability, albeit with potential operational challenges.78
Positive
Balance Sheet
Stag Industrial exhibits a solid balance sheet with growing Total Assets and Stockholders' Equity, reaching $6.83B and $3.46B, respectively, in 2024. The Debt-to-Equity Ratio improved significantly to 0 in 2024 due to the elimination of total debt, showcasing strong financial health and reduced risk. The Equity Ratio also remained robust at 50.58%. The Return on Equity (ROE) was strong at 5.47% in 2024. Overall, the company maintains a healthy balance sheet with no debt and strong equity, contributing to its financial stability.85
Very Positive
Cash Flow
The cash flow statement of Stag Industrial demonstrates a strong operating cash flow, which increased steadily over the years, reaching $460.29M in 2024. The Free Cash Flow also showed positive growth, aligning with the company's profitability. The Operating Cash Flow to Net Income Ratio was high, indicating efficient cash generation relative to net income. The company shows a solid cash flow position, with improving Free Cash Flow and strong cash generation capabilities.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 767.38M | 707.84M | 654.38M | 562.16M | 483.41M | Gross Profit |
| 612.56M | 568.24M | 528.68M | 454.17M | 394.05M | EBIT |
| 4.05M | 242.30M | 205.39M | 164.09M | 137.66M | EBITDA |
| 297.12M | 516.05M | 827.94M | 402.79M | 352.40M | Net Income Common Stockholders |
| 189.22M | 192.84M | 104.22M | 131.73M | 141.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.28M | 20.74M | 25.88M | 18.98M | 15.67M | Total Assets |
| 6.83B | 6.28B | 6.18B | 5.83B | 4.69B | Total Debt |
| 3.06B | 2.66B | 2.53B | 2.25B | 1.73B | Net Debt |
| 3.03B | 2.64B | 2.51B | 2.23B | 1.72B | Total Liabilities |
| 3.30B | 2.84B | 2.73B | 2.44B | 1.92B | Stockholders Equity |
| 3.46B | 3.37B | 3.38B | 3.33B | 2.72B |
| Cash Flow | Free Cash Flow | |||
| 460.29M | 372.63M | 335.22M | 175.77M | 179.10M | Operating Cash Flow |
| 460.29M | 391.09M | 387.93M | 336.15M | 293.92M | Investing Cash Flow |
| -731.06M | -320.35M | -447.52M | -1.22B | -554.62M | Financing Cash Flow |
| 286.29M | -75.67M | 63.19M | 887.12M | 269.18M |
Stag Industrial Technical Analysis
Positive
36.78
Price Trends
34.40
Positive
35.31
Positive
36.17
Positive
Market Momentum
0.60
Negative
67.23
Neutral
79.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STAG, the sentiment is Positive. The current price of 36.78 is above the 20-day moving average (MA) of 35.48, above the 50-day MA of 34.40, and above the 200-day MA of 36.17, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STAG.
Stag Industrial Risk Analysis
Stag Industrial disclosed 47 risk factors in its most recent earnings report. Stag Industrial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stag Industrial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $114.31B | 30.03 | 6.97% | 3.19% | 2.22% | 23.71% | |
80 Outperform | $7.84B | 26.56 | 10.99% | 2.57% | 9.06% | 4.57% | |
79 Outperform | $6.96B | 35.28 | 5.53% | 4.05% | 8.41% | -2.96% | |
74 Outperform | $9.29B | 33.86 | 3.38% | 4.10% | 17.48% | 7.45% | |
73 Outperform | $9.65B | 39.85 | 7.72% | 2.88% | 12.35% | 5.59% | |
73 Outperform | $6.80B | 35.56 | 5.59% | 2.76% | 18.24% | 6.95% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
STAG
Stag Industrial
36.78
0.16
0.44%
EGP
Eastgroup Properties
184.42
9.71
5.56%
PLD
Prologis
119.91
-9.98
-7.68%
TRNO
Terreno Realty
68.40
5.94
9.51%
FR
First Industrial Realty
57.50
6.02
11.69%
REXR
Rexford Industrial Realty
40.45
-10.58
-20.73%
Stag Industrial Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 5.33% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and solid leasing achievements for 2024. However, challenges such as lower Q4 leasing spreads, expected occupancy decline, and market uncertainties regarding tariffs were noted. Despite these challenges, the company's strategic developments and healthy financial standing suggest a positive outlook.Highlights
Leasing Achievements
Achieved cash leasing spreads of 23.8% for 70% of the 2025 expected leasing. For the year 2024, achieved cash and straight-line leasing spreads of 28.3% and 41.8% respectively.
Core FFO Growth
Core FFO per share increased by 4.8% compared to 2023.
Strong Same-Store NOI Growth
Record same-store cash NOI growth of 5.8% for the year 2024.
Development Progress
Entered a joint venture development partnership for 400,000 square feet in Charlotte with an expected stabilized yield of 7%.
Financial Health
Net debt to annualized run rate adjusted EBITDA was 5.2 times at year-end with liquidity of $623 million.
Lowlights
Leasing Challenges in Q4
Leasing spreads in Q4 were lower at 19% due to some fixed-rate renewal options.
Occupancy Decline Expected
Same-store occupancy is expected to decrease by 100 basis points during 2025.
Market Uncertainty
Uncertainty in the market due to tariffs and volatile capital market environment affecting acquisition timing.
Company Guidance
During STAG Industrial's fourth-quarter 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics. They have already leased 70% of the operating portfolio space they plan to lease in 2025, achieving cash leasing spreads of 23.8%. Their acquisition volume for Q4 was $294 million, while disposition proceeds totaled $29 million. For 2025, they anticipate same-store cash NOI growth to range between 3.5% to 4%, with retention rates projected between 70% to 75% and cash leasing spreads around 25%. The company expects to undertake 14 million square feet of new and renewal leasing. Acquisition volume guidance is set between $350 million and $650 million, with disposition volume expected between $100 million and $200 million. Core FFO per share is projected to be in the range of $2.46 to $2.50.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.