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STAG Industrial

STAG
52
REIT - Industrial · Real Estate
Price
$41.68
-0.36 (-0.86%)
Market Cap
$7.97B
Exchange
New York Stock Exchange
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+14.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 164.1M (2021) → 188.2M (2025)

STAG Industrial is a real estate company that owns and rents out large warehouse and distribution buildings across the United States. Its tenants are mostly manufacturers, e-commerce companies, and logistics businesses that need space to store and ship goods. STAG is one of the few industrial REITs focused specifically on single-tenant buildings in smaller, secondary markets rather than major coastal hubs.

The company makes money by collecting rent from long-term leases, typically running five to ten years, which creates steady and predictable income. STAG owns roughly 570 buildings totaling over 110 million square feet, spread across more than 40 states. It pays monthly dividends to shareholders, which is unusual for a REIT and appeals to income-focused investors. The main growth driver is continued demand for warehouse space tied to e-commerce expansion, but the main risk is rising interest rates, which increase borrowing costs and can pressure the value of real estate assets.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-34.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.4%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$9M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

STAG Industrial is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
78.9%
Premium pricing power — 78.9% gross margin
Operating Margin
37.5%
Excellent — 37.5% operating margin
ROCE
1.2%
Weak — 1.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+10.0%
Steady sales growth (10.0% YoY)
EPS YoY
-3.0%
Earnings shrinking (-3.0% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
196%
Turns 196% of profit into real cash
FCF Margin
47.9%
Converts sales into free cash efficiently (47.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.89
Moderate — manageable debt (0.89)
Interest Cover
2.33x
Tight — interest eats into profit (2.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
32.3x
Pricey — P/E 32.3

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+2.0
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
3.88%
Moderate income — 3.88% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+106.0%
Dividend growing fast (106.0% YoY)

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