Stag Industrial (STAG) AI Stock Analysis

• Market Cap: $6.89B
• Dividend Yield: 4.12%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.62
• Revenue Growth: 8.81%
• EPS Growth: 33.30%
• Country: US
• Employees: 91
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Industrial
• EPS (TTM): 0.49
• Shares Outstanding: 186,617,550
• 10 Day Avg. Volume: 1,374,496
• 30 Day Avg. Volume: 1,440,395
• PEG Ratio: 1.00
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.08
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 12.31
• Enterprise Value/Ebitda: 2.86
• 1Y Price Target: $38.00
• Price Target Upside: 5.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $40.00 ▲(11.30%Upside)

Stag Industrial's overall stock score is driven by strong financial performance, highlighted by revenue growth, debt elimination, and robust cash flow. The positive earnings call further supports the score with exceeding expectations in core FFO and leasing activity, despite some macroeconomic challenges. Technical analysis shows moderate bullish momentum, while valuation is supported by a good dividend yield. The absence of corporate events did not impact the overall score.

Positive Factors

Dispositions and Acquisitions

STAG accretively recycled $67M of dispositions into $43.3M of acquisitions with a higher yield.

Lease Expirations

78.5% of 2025 lease expirations have been addressed at favorable cash leasing spreads.

Leasing Activity

Leasing activity increased by 39.6% to 5.0msf compared to the long-term average, with cash leasing spreads accelerating.

Negative Factors

Earnings Headwind

There is a potential earnings headwind from potentially slower acquisition activity.

Guidance

STAG's 2025 guidance was average, showing decelerating growth, with a lower end result compared to peers.

Occupancy

Operating portfolio occupancy fell 50 basis points sequentially to 96.8%.

Stag Industrial Business Overview & Revenue Model

Company Description

Stag Industrial, Inc. (STAG) is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and operation of single-tenant industrial properties throughout the United States. The company is headquartered in Boston, Massachusetts, and specializes in a diverse portfolio of logistics and warehouse facilities, serving a wide range of industries including manufacturing, distribution, and e-commerce. STAG Industrial aims to provide strong, stable, and increasing cash flow to its investors through its extensive and strategically located property holdings.

How the Company Makes Money

Stag Industrial, Inc. generates revenue primarily through the leasing of its industrial properties to various tenants. The company's key revenue stream is rental income from long-term lease agreements, which provides predictable and stable cash flows. STAG employs a proactive asset management strategy to maintain high occupancy rates and maximize the value of its properties. Additionally, the company looks to acquire properties that offer potential for rental growth and value appreciation. STAG's earnings are also influenced by its ability to effectively manage its portfolio, optimize operating expenses, and capitalize on strategic acquisitions and partnerships to expand its asset base and increase shareholder value.

Stag Industrial Financial Statement Overview

Summary

Stag Industrial displays strong financial performance with significant revenue and profitability growth, elimination of debt, and robust cash flow. The company's income statement shows strong revenue growth and improved net profit margin, though operational efficiency could be enhanced. The balance sheet is solid with no debt and strong equity, indicating financial stability. Cash flow is strong with efficient cash generation relative to net income.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	785.41M	767.38M	707.84M	654.38M	562.16M	483.41M
Gross Profit	550.70M	612.56M	568.24M	528.68M	454.17M	394.05M
EBITDA	538.17M	561.02M	516.05M	827.94M	402.79M	352.40M
Net Income	243.95M	189.22M	192.84M	104.22M	131.73M	141.83M
Balance Sheet
Total Assets	6.85B	6.83B	6.28B	6.18B	5.83B	4.69B
Cash, Cash Equivalents and Short-Term Investments	9.33M	36.28M	20.74M	25.88M	18.98M	15.67M
Total Debt	0.00	3.06B	2.66B	2.53B	2.25B	1.73B
Total Liabilities	3.30B	3.30B	2.84B	2.73B	2.44B	1.92B
Stockholders Equity	3.47B	3.46B	3.37B	3.38B	3.33B	2.72B
Cash Flow
Free Cash Flow	355.78M	375.06M	372.63M	335.22M	175.77M	179.10M
Operating Cash Flow	458.67M	460.29M	391.09M	387.93M	336.15M	293.92M
Investing Cash Flow	-679.72M	-731.06M	-320.35M	-447.52M	-1.22B	-554.62M
Financing Cash Flow	256.02M	286.29M	-75.67M	63.19M	887.12M	269.18M

Stag Industrial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 35.94 is below the 20-day moving average (MA) of 36.25, above the 50-day MA of 35.37, and above the 200-day MA of 34.91, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STAG.

Stag Industrial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STAG	77 Outperform	$6.89B	27.14	7.15%	4.12%	8.81%	33.30%
REXR	77 Outperform	$8.69B	30.00	3.35%	4.68%	18.02%	12.12%
FR	75 Outperform	$6.62B	24.07	10.18%	3.67%	9.18%	-7.05%
TRNO	73 Outperform	$5.88B	28.73	5.33%	3.50%	22.17%	4.34%
LXP	69 Neutral	$2.47B	43.48	2.98%	6.47%	5.68%	358.78%
Sector *	59 Neutral	C$1.24B	-0.03	-8.19%	5.00%	10.83%	-22.67%
COLD	48 Neutral	$4.63B	―	-3.56%	5.66%	-1.18%	62.96%