📊 NNN Key Takeaways
Is NNN a Good Investment? Thesis Analysis
NNN REIT demonstrates strong operational fundamentals with 63.6% operating margins and impressive 72% free cash flow margins, generating $667.1M in operating cash flow on $926.2M revenue. The REIT maintains healthy leverage (0.05x debt-to-equity) and positive revenue growth of 6.6% YoY, though net income growth has stalled and per-share metrics declined slightly.
Why Buy NNN? Key Strengths
- Exceptional operating margin of 63.6% indicates strong pricing power and operational efficiency
- Outstanding free cash flow generation at 72% FCF margin provides substantial capital for distributions and debt service
- Conservative leverage ratio of 0.05x debt-to-equity with manageable long-term debt of $200M relative to $9.4B in assets
- Solid revenue growth of 6.6% YoY demonstrates portfolio expansion and market demand
- Large asset base of $9.4B provides stability and diversification across property portfolio
NNN Investment Risks to Consider
- Net income growth stalled at 0% YoY despite revenue growth, indicating margin compression or increased expenses
- Diluted EPS declined 3.7% YoY despite flat net income, signaling potential equity dilution from capital raises
- Low cash position of only $5.0M relative to $9.4B asset base indicates dependence on debt markets for liquidity
- Interest coverage ratio of 2.9x is below the 3.5x+ threshold preferred for REITs, limiting debt capacity
- Modestly low ROE of 8.8% and ROA of 4.2% suggest capital is not generating returns above cost of capital
Key Metrics to Watch
- Operating cash flow trend and sustainability of 72% FCF margin
- Net income growth acceleration and expense control
- Debt-to-EBITDA ratio and interest coverage improvement
- Same-store NOI growth and portfolio lease renewal spreads
- Dividend payout ratio and capital allocation decisions
NNN Financial Metrics
💡 AI Analyst Insight
The 72.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NNN Profitability Ratios
NNN vs Default Sector
How NNN REIT, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NNN Overvalued or Undervalued?
Based on fundamental analysis, NNN REIT, INC. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NNN Balance Sheet & Liquidity
NNN 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NNN REIT, INC.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.16 reflects profitable operations.
NNN Growth Metrics (YoY)
NNN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $218.6M | $96.8M | $0.51 |
| Q2 2025 | $216.8M | $100.5M | $0.54 |
| Q1 2025 | $215.4M | $94.4M | $0.51 |
| Q3 2024 | $205.1M | $97.9M | $0.53 |
| Q2 2024 | $202.6M | $98.7M | $0.54 |
| Q1 2024 | $204.1M | $90.2M | $0.50 |
| Q3 2023 | $193.5M | $88.4M | $0.50 |
| Q2 2023 | $190.8M | $74.2M | $0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NNN Capital Allocation
NNN SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NNN REIT, INC. (CIK: 0000751364)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NNN
What is the AI rating for NNN?
NNN REIT, INC. (NNN) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NNN's key strengths?
Claude: Exceptional operating margin of 63.6% indicates strong pricing power and operational efficiency. Outstanding free cash flow generation at 72% FCF margin provides substantial capital for distributions and debt service.
What are the risks of investing in NNN?
Claude: Net income growth stalled at 0% YoY despite revenue growth, indicating margin compression or increased expenses. Diluted EPS declined 3.7% YoY despite flat net income, signaling potential equity dilution from capital raises.
What is NNN's revenue and growth?
NNN REIT, INC. reported revenue of $926.2M.
Does NNN pay dividends?
NNN REIT, INC. pays dividends, with $443.2M distributed to shareholders in the trailing twelve months.
Where can I find NNN SEC filings?
Official SEC filings for NNN REIT, INC. (CIK: 0000751364) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NNN's EPS?
NNN REIT, INC. has a diluted EPS of $2.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NNN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NNN REIT, INC. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NNN stock overvalued or undervalued?
Valuation metrics for NNN: ROE of 8.8% (sector avg: 15%), net margin of 42.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NNN stock in 2026?
Our dual AI analysis gives NNN REIT, INC. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NNN's free cash flow?
NNN REIT, INC.'s operating cash flow is $667.1M, with capital expenditures of N/A. FCF margin is 72.0%.
How does NNN compare to other Default stocks?
Vs Default sector averages: Net margin 42.1% (avg: 12%), ROE 8.8% (avg: 15%), current ratio N/A (avg: 1.8).