COPT DEFENSE PROPERTIES (CDP) Stock Fundamental Analysis
NYSE:CDP - New York Stock Exchange, Inc. - US22002T1088 - REIT - Currency: USD
Taking everything into account, CDP scores 4 out of 10 in our fundamental rating. CDP was compared to 130 industry peers in the Diversified REITs industry. While CDP belongs to the best of the industry regarding profitability, there are concerns on its financial health. CDP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CDP had positive earnings in the past year.
In the past year CDP had a positive cash flow from operations.
Of the past 5 years CDP 4 years were profitable.
In the past 5 years CDP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.25%, CDP is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
The Return On Equity of CDP (9.27%) is better than 86.05% of its industry peers.
With a decent Return On Invested Capital value of 4.21%, CDP is doing good in the industry, outperforming 79.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CDP is in line with the industry average of 3.16%.
The 3 year average ROIC (3.83%) for CDP is below the current ROIC(4.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.27% | ||
| ROIC | 4.21% |
ROA(3y)1.85%
ROA(5y)1.94%
ROE(3y)4.83%
ROE(5y)5%
ROIC(3y)3.83%
ROIC(5y)3.63%
1.3 Margins
The Profit Margin of CDP (18.38%) is better than 73.64% of its industry peers.
In the last couple of years the Profit Margin of CDP has declined.
CDP's Operating Margin of 28.32% is fine compared to the rest of the industry. CDP outperforms 62.02% of its industry peers.
In the last couple of years the Operating Margin of CDP has grown nicely.
CDP has a Gross Margin of 56.04%. This is in the lower half of the industry: CDP underperforms 72.09% of its industry peers.
In the last couple of years the Gross Margin of CDP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.32% | ||
| PM (TTM) | 18.38% | ||
| GM | 56.04% |
OM growth 3Y3.71%
OM growth 5Y2.69%
PM growth 3Y17.12%
PM growth 5Y-10.08%
GM growth 3Y1.98%
GM growth 5Y1.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CDP is destroying value.
Compared to 1 year ago, CDP has about the same amount of shares outstanding.
CDP has more shares outstanding than it did 5 years ago.
CDP has a better debt/assets ratio than last year.
2.2 Solvency
CDP has an Altman-Z score of 0.66. This is a bad value and indicates that CDP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CDP (0.66) is comparable to the rest of the industry.
The Debt to FCF ratio of CDP is 29.08, which is on the high side as it means it would take CDP, 29.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CDP (29.08) is better than 72.87% of its industry peers.
CDP has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.60, CDP is doing worse than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 29.08 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.65
WACC6.51%
2.3 Liquidity
CDP has a Current Ratio of 0.33. This is a bad value and indicates that CDP is not financially healthy enough and could expect problems in meeting its short term obligations.
CDP has a Current ratio of 0.33. This is amonst the worse of the industry: CDP underperforms 84.50% of its industry peers.
A Quick Ratio of 0.33 indicates that CDP may have some problems paying its short term obligations.
CDP has a Quick ratio of 0.33. This is amonst the worse of the industry: CDP underperforms 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
CDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 215.28%, which is quite impressive.
Measured over the past years, CDP shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.38% on average per year.
CDP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.22%.
The Revenue has been growing slightly by 4.25% on average over the past years.
EPS 1Y (TTM)215.28%
EPS 3Y21.84%
EPS 5Y-6.38%
EPS Q2Q%5.17%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y4.27%
Revenue growth 5Y4.25%
Sales Q2Q%12.72%
3.2 Future
The Earnings Per Share is expected to grow by 5.87% on average over the next years.
The Revenue is expected to grow by 4.80% on average over the next years.
EPS Next Y7.84%
EPS Next 2Y4.5%
EPS Next 3Y5.87%
EPS Next 5YN/A
Revenue Next Year14.12%
Revenue Next 2Y9.27%
Revenue Next 3Y7.88%
Revenue Next 5Y4.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.62, CDP is valued on the expensive side.
Based on the Price/Earnings ratio, CDP is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
CDP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 21.05, which indicates a rather expensive current valuation of CDP.
Based on the Price/Forward Earnings ratio, CDP is valued cheaper than 89.92% of the companies in the same industry.
CDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
CDP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CDP is cheaper than 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CDP does not grow enough to justify the current Price/Earnings ratio.
CDP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y4.5%
EPS Next 3Y5.87%
5. Dividend
5.1 Amount
CDP has a Yearly Dividend Yield of 4.33%, which is a nice return.
CDP's Dividend Yield is slightly below the industry average, which is at 6.44.
Compared to an average S&P500 Dividend Yield of 2.35, CDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
The dividend of CDP has a limited annual growth rate of 1.18%.
CDP has paid a dividend for at least 10 years, which is a reliable track record.
CDP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.18%
Div Incr Years2
Div Non Decr Years12
5.3 Sustainability
CDP pays out 95.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CDP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.25%
EPS Next 2Y4.5%
EPS Next 3Y5.87%
28.28
+0.08 (+0.28%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.62%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner Change3.44%
Market Cap3.19B
Analysts80
Price Target32.49 (14.89%)
Short Float %4.01%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend1.17
Dividend Growth(5Y)1.18%
DP95.25%
Div Incr Years2
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.67%
Min EPS beat(2)-7.92%
Max EPS beat(2)0.58%
EPS beat(4)1
Avg EPS beat(4)-2.54%
Min EPS beat(4)-7.92%
Max EPS beat(4)0.58%
EPS beat(8)2
Avg EPS beat(8)-82.86%
EPS beat(12)4
Avg EPS beat(12)-44.88%
EPS beat(16)5
Avg EPS beat(16)-40.91%
Revenue beat(2)1
Avg Revenue beat(2)2.57%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)5.48%
Revenue beat(4)1
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)5.48%
Revenue beat(8)5
Avg Revenue beat(8)3.67%
Revenue beat(12)9
Avg Revenue beat(12)10.57%
Revenue beat(16)13
Avg Revenue beat(16)11.08%
PT rev (1m)0.45%
PT rev (3m)-5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.55%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)4.22%
Revenue NY rev (3m)8.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 21.05 | ||
| P/S | 4.24 | ||
| P/FCF | 38.8 | ||
| P/OCF | 9.65 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.25
EY4.42%
EPS(NY)1.34
Fwd EY4.75%
FCF(TTM)0.73
FCFY2.58%
OCF(TTM)2.93
OCFY10.37%
SpS6.67
BVpS13.23
TBVpS13.23
PEG (NY)2.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 9.27% | ||
| ROCE | 5.32% | ||
| ROIC | 4.21% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 4.32% | ||
| OM | 28.32% | ||
| PM (TTM) | 18.38% | ||
| GM | 56.04% | ||
| FCFM | 10.92% |
ROA(3y)1.85%
ROA(5y)1.94%
ROE(3y)4.83%
ROE(5y)5%
ROIC(3y)3.83%
ROIC(5y)3.63%
ROICexc(3y)3.9%
ROICexc(5y)3.67%
ROICexgc(3y)3.97%
ROICexgc(5y)3.75%
ROCE(3y)4.85%
ROCE(5y)4.59%
ROICexcg growth 3Y7.88%
ROICexcg growth 5Y4.93%
ROICexc growth 3Y8.15%
ROICexc growth 5Y5.04%
OM growth 3Y3.71%
OM growth 5Y2.69%
PM growth 3Y17.12%
PM growth 5Y-10.08%
GM growth 3Y1.98%
GM growth 5Y1.51%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 29.08 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 33.01% | ||
| Interest Coverage | -2.82 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 59.44% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 0.66 |
F-Score6
WACC6.51%
ROIC/WACC0.65
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)44.53%
Cap/Sales(5y)50.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)215.28%
EPS 3Y21.84%
EPS 5Y-6.38%
EPS Q2Q%5.17%
EPS Next Y7.84%
EPS Next 2Y4.5%
EPS Next 3Y5.87%
EPS Next 5YN/A
Revenue 1Y (TTM)5.22%
Revenue growth 3Y4.27%
Revenue growth 5Y4.25%
Sales Q2Q%12.72%
Revenue Next Year14.12%
Revenue Next 2Y9.27%
Revenue Next 3Y7.88%
Revenue Next 5Y4.8%
EBIT growth 1Y13.18%
EBIT growth 3Y8.14%
EBIT growth 5Y7.06%
EBIT Next Year83.72%
EBIT Next 3Y27.09%
EBIT Next 5Y20.84%
FCF growth 1Y208.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.79%
OCF growth 3Y9.93%
OCF growth 5Y7.68%