CAMDEN PROPERTY TRUST (CPT) Stock Fundamental Analysis
NYSE:CPT - New York Stock Exchange, Inc. - US1331311027 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to CPT. CPT was compared to 20 industry peers in the Residential REITs industry. While CPT is still in line with the averages on profitability rating, there are concerns on its financial health. CPT is quite expensive at the moment. It does show a decent 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.
In the past 5 years CPT has always been profitable.
CPT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.31%, CPT is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.56%, CPT is in line with its industry, outperforming 60.00% of the companies in the same industry.
CPT has a Return On Invested Capital (2.73%) which is in line with 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 2.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 2.56% | ||
| ROIC | 2.73% |
ROA(3y)4.38%
ROA(5y)3.73%
ROE(3y)8.22%
ROE(5y)7.1%
ROIC(3y)2.74%
ROIC(5y)2.62%
1.3 Margins
Looking at the Profit Margin, with a value of 7.61%, CPT is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
CPT's Profit Margin has declined in the last couple of years.
CPT has a Operating Margin (19.20%) which is in line with its industry peers.
CPT's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 61.26%, CPT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CPT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.2% | ||
| PM (TTM) | 7.61% | ||
| GM | 61.26% |
OM growth 3Y-0.89%
OM growth 5Y-4.58%
PM growth 3Y-26.44%
PM growth 5Y-13.1%
GM growth 3Y0.19%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPT is destroying value.
The number of shares outstanding for CPT has been reduced compared to 1 year ago.
CPT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CPT has been reduced compared to a year ago.
2.2 Solvency
CPT has an Altman-Z score of 1.74. This is a bad value and indicates that CPT is not financially healthy and even has some risk of bankruptcy.
CPT has a Altman-Z score of 1.74. This is in the better half of the industry: CPT outperforms 80.00% of its industry peers.
The Debt to FCF ratio of CPT is 8.87, which is on the high side as it means it would take CPT, 8.87 years of fcf income to pay off all of its debts.
CPT's Debt to FCF ratio of 8.87 is amongst the best of the industry. CPT outperforms 95.00% of its industry peers.
CPT has a Debt/Equity ratio of 0.81. This is a neutral value indicating CPT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, CPT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.87 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.35
WACC7.7%
2.3 Liquidity
CPT has a Current Ratio of 0.10. This is a bad value and indicates that CPT is not financially healthy enough and could expect problems in meeting its short term obligations.
CPT's Current ratio of 0.10 is on the low side compared to the rest of the industry. CPT is outperformed by 75.00% of its industry peers.
CPT has a Quick Ratio of 0.10. This is a bad value and indicates that CPT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.10, CPT is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The earnings per share for CPT have decreased strongly by -64.15% in the last year.
Measured over the past 5 years, CPT shows a small growth in Earnings Per Share. The EPS has been growing by 0.43% on average per year.
The Revenue for CPT has decreased by -19.42% in the past year. This is quite bad
The Revenue has been growing by 8.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-64.15%
EPS 3Y13.97%
EPS 5Y0.43%
EPS Q2Q%-53.25%
Revenue 1Y (TTM)-19.42%
Revenue growth 3Y10.52%
Revenue growth 5Y8.46%
Sales Q2Q%1.94%
3.2 Future
The Earnings Per Share is expected to grow by 4.13% on average over the next years.
CPT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
EPS Next Y-29.76%
EPS Next 2Y-8.75%
EPS Next 3Y4.13%
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y2.72%
Revenue Next 3Y3.53%
Revenue Next 5Y4.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CPT is valuated quite expensively with a Price/Earnings ratio of 76.89.
Compared to the rest of the industry, the Price/Earnings ratio of CPT indicates a somewhat cheap valuation: CPT is cheaper than 65.00% of the companies listed in the same industry.
CPT is valuated expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 72.20, CPT can be considered very expensive at the moment.
CPT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CPT to the average of the S&P500 Index (21.76), we can say CPT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.89 | ||
| Fwd PE | 72.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPT indicates a rather cheap valuation: CPT is cheaper than 85.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CPT is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.67 | ||
| EV/EBITDA | 17.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)178.38
EPS Next 2Y-8.75%
EPS Next 3Y4.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, CPT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.56, CPT is paying slightly less dividend.
CPT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of CPT has a limited annual growth rate of 4.99%.
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)4.99%
Div Incr Years6
Div Non Decr Years13
5.3 Sustainability
384.83% of the earnings are spent on dividend by CPT. This is not a sustainable payout ratio.
The dividend of CPT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP384.83%
EPS Next 2Y-8.75%
EPS Next 3Y4.13%
113.03
-1.37 (-1.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner Change0.72%
Ins Owners1.2%
Ins Owner Change2.8%
Market Cap12.08B
Analysts73.79
Price Target132.1 (16.87%)
Short Float %2.36%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend4.15
Dividend Growth(5Y)4.99%
DP384.83%
Div Incr Years6
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.3%
Min EPS beat(2)-12.31%
Max EPS beat(2)5.72%
EPS beat(4)1
Avg EPS beat(4)-4.15%
Min EPS beat(4)-12.31%
Max EPS beat(4)5.72%
EPS beat(8)5
Avg EPS beat(8)78.71%
EPS beat(12)8
Avg EPS beat(12)114.05%
EPS beat(16)8
Avg EPS beat(16)81.6%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-0.95%
Revenue beat(12)1
Avg Revenue beat(12)6.98%
Revenue beat(16)4
Avg Revenue beat(16)11.46%
PT rev (1m)-0.24%
PT rev (3m)1.98%
EPS NQ rev (1m)-10.22%
EPS NQ rev (3m)-17.47%
EPS NY rev (1m)-14.38%
EPS NY rev (3m)-18%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.89 | ||
| Fwd PE | 72.2 | ||
| P/S | 7.78 | ||
| P/FCF | 28.67 | ||
| P/OCF | 15.34 | ||
| P/B | 2.62 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 17.85 |
EPS(TTM)1.47
EY1.3%
EPS(NY)1.57
Fwd EY1.39%
FCF(TTM)3.94
FCFY3.49%
OCF(TTM)7.37
OCFY6.52%
SpS14.52
BVpS43.2
TBVpS43.2
PEG (NY)N/A
PEG (5Y)178.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 2.56% | ||
| ROCE | 3.45% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.81% | ||
| OM | 19.2% | ||
| PM (TTM) | 7.61% | ||
| GM | 61.26% | ||
| FCFM | 27.15% |
ROA(3y)4.38%
ROA(5y)3.73%
ROE(3y)8.22%
ROE(5y)7.1%
ROIC(3y)2.74%
ROIC(5y)2.62%
ROICexc(3y)2.77%
ROICexc(5y)2.72%
ROICexgc(3y)2.85%
ROICexgc(5y)2.8%
ROCE(3y)3.46%
ROCE(5y)3.32%
ROICexcg growth 3Y0.86%
ROICexcg growth 5Y-2.21%
ROICexc growth 3Y1.1%
ROICexc growth 5Y-2.02%
OM growth 3Y-0.89%
OM growth 5Y-4.58%
PM growth 3Y-26.44%
PM growth 5Y-13.1%
GM growth 3Y0.19%
GM growth 5Y-0.06%
F-Score4
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.87 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 62.41% | ||
| Cap/Sales | 23.6% | ||
| Interest Coverage | 2.23 | ||
| Cash Conversion | 89.02% | ||
| Profit Quality | 356.94% | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.74 |
F-Score4
WACC7.7%
ROIC/WACC0.35
Cap/Depr(3y)72.34%
Cap/Depr(5y)87.06%
Cap/Sales(3y)27.91%
Cap/Sales(5y)32.43%
Profit Quality(3y)124.82%
Profit Quality(5y)99.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-64.15%
EPS 3Y13.97%
EPS 5Y0.43%
EPS Q2Q%-53.25%
EPS Next Y-29.76%
EPS Next 2Y-8.75%
EPS Next 3Y4.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.42%
Revenue growth 3Y10.52%
Revenue growth 5Y8.46%
Sales Q2Q%1.94%
Revenue Next Year1.99%
Revenue Next 2Y2.72%
Revenue Next 3Y3.53%
Revenue Next 5Y4.63%
EBIT growth 1Y-25.24%
EBIT growth 3Y9.54%
EBIT growth 5Y3.5%
EBIT Next Year205.47%
EBIT Next 3Y49.68%
EBIT Next 5Y38.16%
FCF growth 1Y35.28%
FCF growth 3Y36.84%
FCF growth 5Y20.83%
OCF growth 1Y3.29%
OCF growth 3Y10.3%
OCF growth 5Y6.88%