Assessing Getty Realty (GTY) Valuation After $250 Million Senior Unsecured Notes Reshape Its Balance Sheet
Getty Realty (GTY) just locked in a fresh $250 million in senior unsecured notes, a material financing move that reshapes its balance sheet, extends debt maturities, and frees up capacity for new investments.
See our latest analysis for Getty Realty.
The new $250 million note deal lands while Getty Realty’s share price has slipped year to date but still sits at $27.93, and its five year total shareholder return near 30% points to durable, if unspectacular, long term compounding rather than fading momentum.
If this kind of steady, income oriented story has you wondering what else is out there, now is a smart time to explore fast growing stocks with high insider ownership as a contrast.
Yet with revenue and earnings still growing, the stock trading below analyst targets, and a hefty intrinsic discount implied, is Getty a quietly mispriced income REIT, or is the market already baking in all the growth ahead?
Most Popular Narrative Narrative: 13.1% Undervalued
Compared with Getty Realty’s last close at $27.93, the most followed narrative pegs fair value meaningfully higher and grounds that view in detailed growth math.
The analysts have a consensus price target of $32.143 for Getty Realty based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $252.2 million, earnings will come to $92.5 million, and it would be trading on a PE ratio of 26.9x, assuming you use a discount rate of 8.3%.
Curious how steady lease income, rising margins, and only moderate growth assumptions still add up to a higher fair value than today’s price, and what that implies for long term returns and re rating potential?
Result: Fair Value of $32.14 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, shifting mobility trends and environmental liabilities could weaken demand for auto centric sites, challenging Getty’s growth assumptions and long term valuation upside.
Find out about the key risks to this Getty Realty narrative.
Build Your Own Getty Realty Narrative
If you see the story differently, or want to stress test the numbers yourself, you can build a personalized narrative in just minutes: Do it your way.
A great starting point for your Getty Realty research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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