CAMDEN PROPERTY TRUST (CPT)
US1331311027 - REIT
We assign a fundamental rating of 5 out of 10 to CPT. CPT was compared to 20 industry peers in the Residential REITs industry. While CPT belongs to the best of the industry regarding profitability, there are concerns on its financial health. CPT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CPT had positive earnings in the past year.
In the past year CPT had a positive cash flow from operations.
CPT had positive earnings in each of the past 5 years.
CPT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPT has a Return On Assets of 4.37%. This is in the better half of the industry: CPT outperforms 80.00% of its industry peers.
CPT's Return On Equity of 8.17% is fine compared to the rest of the industry. CPT outperforms 75.00% of its industry peers.
CPT has a better Return On Invested Capital (2.99%) than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPT is in line with the industry average of 2.55%.
The last Return On Invested Capital (2.99%) for CPT is above the 3 year average (2.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 8.17% | ||
| ROIC | 2.99% |
ROA(3y)5.03%
ROA(5y)4.01%
ROE(3y)9.47%
ROE(5y)7.61%
ROIC(3y)2.63%
ROIC(5y)2.68%
1.3 Margins
CPT has a Profit Margin of 25.60%. This is in the better half of the industry: CPT outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of CPT has grown nicely.
CPT has a Operating Margin (20.46%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CPT has declined.
The Gross Margin of CPT (61.79%) is better than 75.00% of its industry peers.
CPT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.46% | ||
| PM (TTM) | 25.6% | ||
| GM | 61.79% |
OM growth 3Y1.29%
OM growth 5Y-3.25%
PM growth 3Y30.13%
PM growth 5Y9.97%
GM growth 3Y1.45%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPT is destroying value.
Compared to 1 year ago, CPT has more shares outstanding
CPT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CPT has a worse debt to assets ratio.
2.2 Solvency
CPT has an Altman-Z score of 1.92. This is not the best score and indicates that CPT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CPT (1.92) is better than 80.00% of its industry peers.
The Debt to FCF ratio of CPT is 9.76, which is on the high side as it means it would take CPT, 9.76 years of fcf income to pay off all of its debts.
CPT has a better Debt to FCF ratio (9.76) than 90.00% of its industry peers.
CPT has a Debt/Equity ratio of 0.67. This is a neutral value indicating CPT is somewhat dependend on debt financing.
The Debt to Equity ratio of CPT (0.67) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 9.76 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.41
WACC7.36%
2.3 Liquidity
A Current Ratio of 0.15 indicates that CPT may have some problems paying its short term obligations.
CPT's Current ratio of 0.15 is on the low side compared to the rest of the industry. CPT is outperformed by 80.00% of its industry peers.
A Quick Ratio of 0.15 indicates that CPT may have some problems paying its short term obligations.
CPT has a worse Quick ratio (0.15) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
CPT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.63%, which is quite impressive.
CPT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.09% yearly.
CPT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.13%.
Measured over the past years, CPT shows a quite strong growth in Revenue. The Revenue has been growing by 10.07% on average per year.
EPS 1Y (TTM)87.63%
EPS 3Y44.23%
EPS 5Y18.09%
EPS Q2Q%-53.49%
Revenue 1Y (TTM)-18.13%
Revenue growth 3Y13.89%
Revenue growth 5Y10.07%
Sales Q2Q%0.43%
3.2 Future
Based on estimates for the next years, CPT will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.12% on average per year.
CPT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.26% yearly.
EPS Next Y-47.15%
EPS Next 2Y-33.16%
EPS Next 3Y-17.12%
EPS Next 5YN/A
Revenue Next Year0.51%
Revenue Next 2Y1.62%
Revenue Next 3Y2.87%
Revenue Next 5Y4.26%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.44, which means the current valuation is very expensive for CPT.
Compared to the rest of the industry, the Price/Earnings ratio of CPT indicates a rather cheap valuation: CPT is cheaper than 85.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 31.71. CPT is around the same levels.
The Price/Forward Earnings ratio is 71.03, which means the current valuation is very expensive for CPT.
The rest of the industry has a similar Price/Forward Earnings ratio as CPT.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, CPT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 71.03 |
4.2 Price Multiples
CPT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPT is cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CPT is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.58 | ||
| EV/EBITDA | 18.21 |
4.3 Compensation for Growth
The decent profitability rating of CPT may justify a higher PE ratio.
A cheap valuation may be justified as CPT's earnings are expected to decrease with -17.12% in the coming years.
PEG (NY)N/A
PEG (5Y)1.79
EPS Next 2Y-33.16%
EPS Next 3Y-17.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, CPT has a reasonable but not impressive dividend return.
CPT's Dividend Yield is comparable with the industry average which is at 3.81.
Compared to an average S&P500 Dividend Yield of 2.18, CPT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of CPT has a limited annual growth rate of 5.90%.
CPT has been paying a dividend for at least 10 years, so it has a reliable track record.
CPT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.9%
Div Incr Years6
Div Non Decr Years13
5.3 Sustainability
112.19% of the earnings are spent on dividend by CPT. This is not a sustainable payout ratio.
CPT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP112.19%
EPS Next 2Y-33.16%
EPS Next 3Y-17.12%
CAMDEN PROPERTY TRUST
NYSE:CPT (10/21/2024, 4:20:03 PM)
After market: 118.07 0 (0%)118.07
-2.67 (-2.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.44 | ||
| Fwd PE | 71.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.37% | ||
| ROE | 8.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.46% | ||
| PM (TTM) | 25.6% | ||
| GM | 61.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)87.63%
EPS 3Y44.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-47.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.13%
Revenue growth 3Y13.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y