COPT DEFENSE PROPERTIES (CDP) Stock Fundamental Analysis
NYSE:CDP - New York Stock Exchange, Inc. - US22002T1088 - REIT - Currency: USD
CDP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate. CDP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CDP was profitable.
CDP had a positive operating cash flow in the past year.
Of the past 5 years CDP 4 years were profitable.
CDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CDP's Return On Assets of 3.25% is fine compared to the rest of the industry. CDP outperforms 80.00% of its industry peers.
CDP has a better Return On Equity (9.27%) than 86.15% of its industry peers.
With an excellent Return On Invested Capital value of 4.21%, CDP belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
CDP had an Average Return On Invested Capital over the past 3 years of 3.83%. This is in line with the industry average of 3.17%.
The last Return On Invested Capital (4.21%) for CDP is above the 3 year average (3.83%), which is a sign of increasing profitability.
| 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
CDP's Profit Margin of 18.38% is fine compared to the rest of the industry. CDP outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of CDP has declined.
The Operating Margin of CDP (28.32%) is better than 62.31% 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 71.54% of its industry peers.
CDP's Gross Margin has improved in the last couple of years.
| 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
CDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CDP has about the same amount of shares outstanding.
The number of shares outstanding for CDP has been increased compared to 5 years ago.
The debt/assets ratio for CDP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.61, we must say that CDP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.61, CDP is in line with its industry, outperforming 57.69% of the companies in the same industry.
CDP has a debt to FCF ratio of 29.08. This is a negative value and a sign of low solvency as CDP would need 29.08 years to pay back of all of its debts.
CDP has a Debt to FCF ratio of 29.08. This is in the better half of the industry: CDP outperforms 66.92% 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.
CDP's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. CDP is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 29.08 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.65
WACC6.45%
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 86.92% of its industry peers.
A Quick Ratio of 0.33 indicates that CDP may have some problems paying its short term obligations.
CDP's Quick ratio of 0.33 is on the low side compared to the rest of the industry. CDP is outperformed by 86.15% 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 247.22%, which is quite impressive.
CDP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.38% yearly.
CDP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.22%.
CDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.25% yearly.
EPS 1Y (TTM)247.22%
EPS 3Y21.84%
EPS 5Y-6.38%
EPS Q2Q%124.14%
Revenue 1Y (TTM)5.22%
Revenue growth 3Y4.27%
Revenue growth 5Y4.25%
Sales Q2Q%12.72%
3.2 Future
CDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.87% yearly.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y9.21%
EPS Next 2Y4.7%
EPS Next 3Y5.87%
EPS Next 5YN/A
Revenue Next Year5.9%
Revenue Next 2Y5.72%
Revenue Next 3Y4.85%
Revenue Next 5Y4.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.70, which indicates a correct valuation of CDP.
CDP's Price/Earnings ratio is rather cheap when compared to the industry. CDP is cheaper than 83.08% of the companies in the same industry.
CDP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
Based on the Price/Forward Earnings ratio of 19.70, the valuation of CDP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CDP is valued cheaply inside the industry as 91.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. CDP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
CDP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CDP is cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CDP may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y4.7%
EPS Next 3Y5.87%
5. Dividend
5.1 Amount
CDP has a Yearly Dividend Yield of 4.67%, which is a nice return.
CDP's Dividend Yield is comparable with the industry average which is at 16.33.
Compared to an average S&P500 Dividend Yield of 2.44, CDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y4.7%
EPS Next 3Y5.87%
26.56
+0.37 (+1.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.02%
Inst Owner ChangeN/A
Ins Owners0.29%
Ins Owner Change-11.39%
Market Cap3.00B
Analysts80
Price Target33.81 (27.3%)
Short Float %4.34%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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)-5.75%
PT rev (3m)-7.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 19.7 | ||
| P/S | 3.98 | ||
| P/FCF | 36.44 | ||
| P/OCF | 9.06 | ||
| P/B | 2.01 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.59
EY5.99%
EPS(NY)1.35
Fwd EY5.08%
FCF(TTM)0.73
FCFY2.74%
OCF(TTM)2.93
OCFY11.04%
SpS6.67
BVpS13.23
TBVpS13.23
PEG (NY)1.81
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 | 0.61 |
F-Score6
WACC6.45%
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)247.22%
EPS 3Y21.84%
EPS 5Y-6.38%
EPS Q2Q%124.14%
EPS Next Y9.21%
EPS Next 2Y4.7%
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 Year5.9%
Revenue Next 2Y5.72%
Revenue Next 3Y4.85%
Revenue Next 5Y4.27%
EBIT growth 1Y13.18%
EBIT growth 3Y8.14%
EBIT growth 5Y7.06%
EBIT Next Year81.43%
EBIT Next 3Y26.84%
EBIT Next 5Y20.22%
FCF growth 1Y208.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.79%
OCF growth 3Y9.93%
OCF growth 5Y7.68%