Broadstone Net Lease Inc. Common Stock (BNL)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $201 million in annual free cash flow (5.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Attractive 5.9% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($13) with negative 53% margin of safety—limited downside protection
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Broadstone Net Lease Inc. Common Stock is a small-cap real estate company valued at $3.8 billion. The business generates $454 million in annual revenue with a 7.3% net margin and $201 million in free cash flow. From a quality standpoint, Broadstone shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is commanding a steep 40.1x multiple, with trades above its Graham Number with a negative 53% margin. Growth dynamics show revenue growing at 5.5% and profit growth of 25.5%. The 5.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $201 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 40x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer