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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 55.3GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
3.4%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Broadstone Net Lease, Inc. (BNL) receives a "Hold" rating with a composite score of 52.4/100, ranked #738 out of 4446 stocks. Key factor scores: Quality 55/100, Value 56/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
Broadstone Net Lease, Inc. (BNL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Broadstone Net Lease, Inc. Do?
BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion. Broadstone Net Lease, Inc. (BNL) is classified as a mid-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Christopher J. Czarnecki and employs approximately 70 people. With a market capitalization of $3.5B, BNL is one of the notable companies in the Financials sector.
Broadstone Net Lease, Inc. (BNL) Stock Rating — Hold (April 2026)
As of April 2026, Broadstone Net Lease, Inc. receives a Hold rating with a composite score of 52.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BNL ranks #738 out of 4,446 stocks in our coverage universe. Within the Financials sector, Broadstone Net Lease, Inc. ranks #220 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BNL Stock Price and 52-Week Range
Broadstone Net Lease, Inc. (BNL) currently trades at $19.92. The stock gained $0.18 (0.9%) in the most recent trading session. The 52-week high for BNL is $19.91, which means the stock is currently trading 0.1% from its annual peak. The 52-week low is $13.96, putting the stock 42.7% above its annual trough. Recent trading volume was 2.1M shares, reflecting moderate market activity.
Is BNL Overvalued or Undervalued? — Valuation Analysis
Broadstone Net Lease, Inc. (BNL) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 35.56x, compared to the Financials sector average of 14.88x — a premium of 139%. The price-to-book ratio stands at 1.19x, versus the sector average of 1.22x. The price-to-sales ratio is 8.62x, compared to 0.90x for the average Financials stock. On an enterprise value basis, BNL trades at 19.07x EV/EBITDA, versus 3.26x for the sector.
Overall, BNL's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Broadstone Net Lease, Inc. Profitability — ROE, Margins, and Quality Score
Broadstone Net Lease, Inc. (BNL) earns a quality factor score of 55/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 3.4%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.8% versus the sector average of 1.2%.
On a margin basis, Broadstone Net Lease, Inc. reports gross margins of 0.0%. The operating margin is 41.0% (sector: 21.8%). Net profit margin stands at 24.6%, versus 17.7% for the average Financials stock. Revenue growth is running at -15.6% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BNL Debt, Balance Sheet, and Financial Health
Broadstone Net Lease, Inc. has a debt-to-equity ratio of 83.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.13x, indicating strong short-term liquidity. Total debt on the balance sheet is $2.52B. Cash and equivalents stand at $82M.
BNL has a beta of 0.36, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Broadstone Net Lease, Inc. is 91/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Broadstone Net Lease, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Broadstone Net Lease, Inc. reported revenue of $419M and earnings per share (EPS) of $0.51. Net income for the quarter was $102M. Gross margin was 0.0%. Operating income came in at $253M.
In FY 2025, Broadstone Net Lease, Inc. reported revenue of $454M and earnings per share (EPS) of $0.51. Net income for the quarter was $99M. Revenue grew 5.2% year-over-year compared to FY 2024. Operating income came in at $188M.
In Q3 2025, Broadstone Net Lease, Inc. reported revenue of $89M and earnings per share (EPS) of $0.14. Net income for the quarter was $27M. Gross margin was -31.4%. Revenue grew -17.5% year-over-year compared to Q3 2024. Operating income came in at $117M.
In Q2 2025, Broadstone Net Lease, Inc. reported revenue of $113M and earnings per share (EPS) of $0.11. Net income for the quarter was $20M. Revenue grew 6.7% year-over-year compared to Q2 2024. Operating income came in at $44M.
Over the past 8 quarters, Broadstone Net Lease, Inc. has demonstrated a growth trajectory, with revenue expanding from $106M to $419M. Investors analyzing BNL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BNL Dividend Yield and Income Analysis
Broadstone Net Lease, Inc. (BNL) does not currently pay a dividend. This is common among smaller companies in the Trading industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
BNL Momentum and Technical Analysis Profile
Broadstone Net Lease, Inc. (BNL) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BNL vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing BNL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BNL vs S&P 500 (SPY) comparison to assess how Broadstone Net Lease, Inc. stacks up against the broader market across all factor dimensions.
BNL Next Earnings Date
No upcoming earnings date has been announced for Broadstone Net Lease, Inc. (BNL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BNL? — Investment Thesis Summary
Broadstone Net Lease, Inc. presents a balanced picture with arguments on both sides. Low volatility (stability score 91/100) reduces downside risk.
In summary, Broadstone Net Lease, Inc. (BNL) earns a Hold rating with a composite score of 52.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BNL stock.
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Institutional Research Dossier
Broadstone Net Lease, Inc. (BNL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Broadstone Net Lease (BNL) receives a Hold rating, driven by a mixed financial profile and a valuation that appears stretched relative to its sector peers. While BNL exhibits stability and strong operating margins, its negative free cash flow and declining revenue growth raise concerns about its long-term sustainability and ability to fund future acquisitions without increasing leverage. The company's high P/E ratio compared to the sector suggests that the market may be overvaluing its growth prospects, making a neutral stance prudent.
BNL's investment strategy, focused on single-tenant net lease properties, offers a degree of predictability in revenue streams. However, the company's reliance on debt financing and exposure to various property types introduces risks that warrant careful consideration. The current valuation, coupled with the company's financial performance, does not present a compelling case for either a buy or sell recommendation, hence the Hold rating.
Business Strategy & Overview
Broadstone Net Lease operates as an internally-managed REIT, concentrating on acquiring, owning, and managing single-tenant commercial real estate properties under long-term net leases. This strategy aims to generate stable and predictable cash flows, as the tenants are typically responsible for property taxes, insurance, and maintenance expenses. BNL's portfolio diversification across industrial, healthcare, restaurant, office, and retail sectors mitigates risk associated with any single industry downturn. As of September 30, 2020, the company held 627 properties across 41 U.S. states and one in Canada, demonstrating a broad geographic footprint.
The company's investment approach emphasizes rigorous fundamental credit analysis and real estate underwriting. This involves assessing the creditworthiness of potential tenants and the long-term viability of the properties. By focusing on tenants with strong financial profiles and properties in strategic locations, BNL seeks to minimize vacancy risk and maximize rental income. The net lease structure provides a relatively hands-off management approach, allowing BNL to operate with a lean internal team.
BNL's internal management structure distinguishes it from externally managed REITs, potentially aligning management's interests more closely with those of shareholders. However, it also introduces the risk of higher overhead costs compared to externally managed peers. The company's growth strategy relies on acquiring new properties and renewing existing leases at favorable terms. This requires access to capital markets and the ability to identify attractive investment opportunities in a competitive real estate market.
The company's strategy is heavily reliant on the macroeconomic environment and interest rate conditions. Rising interest rates could increase borrowing costs, impacting profitability and potentially slowing down acquisition activity. Furthermore, economic downturns could lead to tenant bankruptcies and lease defaults, negatively affecting BNL's revenue stream. The company's ability to navigate these challenges will be crucial to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-15.6%
Sector: 9.4%
-266% VS SCTR
Economic Moat Analysis
Broadstone Net Lease's economic moat is assessed as Narrow. While the company benefits from certain advantages inherent in the net lease REIT model, these are not substantial enough to create a wide and sustainable competitive edge. The primary source of BNL's moat lies in its diversified portfolio of properties and tenants, which reduces the impact of any single tenant's financial distress or property-specific issues. This diversification provides a degree of stability and predictability in revenue streams, which is attractive to investors seeking income-generating assets.
However, the net lease REIT industry is highly competitive, with numerous players vying for similar properties and tenants. BNL does not possess unique or proprietary assets that would prevent competitors from replicating its business model. The company's reliance on standard commercial real estate properties means that it is subject to the same market forces as other REITs, including fluctuations in property values and rental rates.
Furthermore, BNL's lack of significant brand recognition or specialized expertise limits its ability to command premium rental rates or attract higher-quality tenants. While the company's internal management structure may offer some advantages in terms of alignment of interests, it does not create a significant barrier to entry for new competitors. The company's size, while substantial, is not large enough to create significant economies of scale that would give it a cost advantage over smaller peers.
The absence of strong network effects or high switching costs further weakens BNL's moat. Tenants can easily move to competing properties if they find better terms or locations. The company's ability to maintain its competitive position depends on its ability to consistently acquire properties at attractive yields and manage its portfolio effectively. However, these factors are not sufficient to create a wide and durable economic moat.
Financial Health & Profitability
Broadstone Net Lease's financial health presents a mixed picture. The company's revenue for FY2025 is $454.14 million, with a net income of $99.42 million, translating to an EPS of $0.50. However, the company's free cash flow is significantly negative at $-240.59 million. This negative FCF raises concerns about the company's ability to fund its operations and growth initiatives without relying on external financing. The operating margin for FY2025 is 41.5%, indicating efficient cost management.
Comparing the financials to previous years, the revenue growth shows a concerning trend. Revenue decreased from $442.89 million in FY2023 to $431.80 million in FY2024, and then increased slightly to $454.14 million in FY2025. This inconsistent revenue growth suggests potential challenges in maintaining consistent performance. Net income also fluctuated, from $163.31 million in FY2023 to $168.99 million in FY2024, and then decreased to $99.42 million in FY2025. This volatility in net income further underscores the need for caution.
The company's balance sheet shows total cash of $81.97 million and total debt of $2.52 billion, resulting in a debt-to-equity ratio of 83.00. While this is lower than the sector average of 115.00, the high level of debt still poses a risk, especially in a rising interest rate environment. The current ratio of 2.13 indicates a strong ability to meet short-term obligations.
Compared to the sector, BNL's operating margin (41.1%) and net margin (24.6%) are significantly higher than the sector averages of 22.0% and 17.8%, respectively. This suggests that BNL is more efficient in managing its expenses and generating profits. However, the company's revenue growth of -15.6% is significantly lower than the sector average of 9.3%, indicating a potential underperformance in revenue generation. The company's ROE of 3.4% is also lower than the sector average of 8.5%, suggesting that BNL is not as efficient in generating profits from shareholders' equity.
Valuation Assessment
Broadstone Net Lease's valuation metrics suggest that the stock is currently trading at a premium compared to its sector peers. The company's P/E ratio of 36.6x is significantly higher than the sector average of 15.5x, indicating that investors are paying a higher price for each dollar of earnings. This could be due to expectations of future growth or perceived quality, but it also increases the risk of a potential correction if the company fails to meet those expectations.
The EV/EBITDA ratio of 4.3x is also slightly higher than the sector average of 3.5x, suggesting that the company is relatively more expensive on an enterprise value basis. This metric takes into account the company's debt and cash, providing a more comprehensive view of its valuation. However, the difference is not as pronounced as the P/E ratio, indicating that the company's debt levels may be partially offsetting its higher earnings multiple.
The negative free cash flow of $-240.59 million makes it difficult to assess the company's valuation using traditional FCF-based metrics. A negative FCF yield suggests that the company is not generating enough cash to cover its capital expenditures and other obligations, which could put pressure on its stock price in the long run. This is a significant concern that warrants careful monitoring.
Given the company's high P/E ratio, slightly elevated EV/EBITDA ratio, and negative free cash flow, the stock appears to be overvalued relative to its sector peers. While the company's strong operating margins and stable business model may justify a premium valuation, the current multiples seem excessive, especially considering the company's declining revenue growth and high debt levels. A more conservative valuation approach may be warranted, taking into account the company's risks and uncertainties.
Risk & Uncertainty
Broadstone Net Lease faces several key risks that could impact its financial performance and stock price. One of the most significant risks is its reliance on debt financing. The company's high debt levels expose it to interest rate risk, as rising interest rates could increase borrowing costs and reduce profitability. Furthermore, the company's ability to refinance its debt at favorable terms depends on its creditworthiness and market conditions. A downgrade in its credit rating or a tightening of credit markets could make it more difficult and expensive to access capital.
Another risk is the potential for tenant bankruptcies and lease defaults. While BNL's diversified portfolio mitigates this risk to some extent, a significant economic downturn could lead to widespread tenant distress, negatively impacting the company's rental income and occupancy rates. The company's exposure to various property types, including retail and restaurants, also increases its vulnerability to sector-specific downturns.
Competition from other REITs and real estate investors is another significant risk. The net lease REIT industry is highly competitive, with numerous players vying for similar properties and tenants. This competition could put pressure on rental rates and acquisition yields, reducing the company's profitability. Furthermore, the company's ability to acquire new properties depends on its ability to identify attractive investment opportunities and compete effectively with other bidders.
Regulatory changes and environmental risks also pose potential threats. Changes in tax laws or zoning regulations could negatively impact the company's profitability and property values. Environmental issues, such as contamination or natural disasters, could also result in significant costs and liabilities. The company's ability to manage these risks effectively will be crucial to its long-term success.
Bulls Say / Bears Say
The Bull Case
BULL VIEWBNL's diversified portfolio of net lease properties provides a stable and predictable income stream, making it an attractive investment for income-seeking investors.
BULL VIEWThe company's strong operating margins and efficient cost management demonstrate its ability to generate profits and create value for shareholders.
BULL VIEWBNL's internal management structure aligns management's interests with those of shareholders, promoting long-term value creation and responsible capital allocation.
The Bear Case
BEAR VIEWBNL's high P/E ratio and negative free cash flow suggest that the stock is overvalued and unsustainable at current levels.
BEAR VIEWThe company's declining revenue growth and high debt levels raise concerns about its long-term financial health and ability to fund future acquisitions.
BEAR VIEWIncreased competition in the net lease REIT industry and potential tenant bankruptcies could negatively impact BNL's rental income and occupancy rates.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BNL and 4,400+ other equities.
Broadstone Net Lease, Inc. exhibits a 370% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
41.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
24.6%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
