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. While showing a medium growth rate, CPT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CPT was profitable.
CPT had a positive operating cash flow in the past year.
In the past 5 years CPT has always been profitable.
Each year in the past 5 years CPT had a positive operating cash flow.
1.2 Ratios
CPT has a better Return On Assets (1.31%) than 65.00% of its industry peers.
CPT has a Return On Equity (2.56%) which is in line with its industry peers.
CPT has a Return On Invested Capital (2.73%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CPT is in line with the industry average of 2.62%.
| 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.
In the last couple of years the Profit Margin of CPT has declined.
The Operating Margin of CPT (19.20%) is comparable to the rest of the industry.
CPT's Operating Margin has declined in the last couple of years.
CPT has a better Gross Margin (61.26%) 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 | 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
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 less shares outstanding
The number of shares outstanding for CPT has been increased compared to 5 years ago.
Compared to 1 year ago, CPT has an improved debt to assets ratio.
2.2 Solvency
CPT has an Altman-Z score of 1.78. 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 1.78. This is in the better half of the industry: CPT outperforms 80.00% of its industry peers.
CPT has a debt to FCF ratio of 8.87. This is a slightly negative value and a sign of low solvency as CPT would need 8.87 years to pay back of all of its debts.
CPT has a better Debt to FCF ratio (8.87) than 95.00% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that CPT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.81, CPT is doing good in 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 | 1.78 |
ROIC/WACC0.36
WACC7.63%
2.3 Liquidity
A Current Ratio of 0.10 indicates that CPT may have some problems paying its short term obligations.
CPT has a Current ratio of 0.10. This is in the lower half of the industry: CPT underperforms 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.
CPT's Quick ratio of 0.10 is on the low side compared to the rest of the industry. CPT is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
CPT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.15%.
The Earnings Per Share has been growing slightly by 0.43% on average over the past years.
CPT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.42%.
CPT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.46% yearly.
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
Based on estimates for the next years, CPT will show a small growth in Earnings Per Share. The EPS will grow by 4.76% on average per year.
The Revenue is expected to grow by 4.86% on average over the next years.
EPS Next Y-30.93%
EPS Next 2Y-8.93%
EPS Next 3Y4.76%
EPS Next 5YN/A
Revenue Next Year2.18%
Revenue Next 2Y2.72%
Revenue Next 3Y3.47%
Revenue Next 5Y4.86%
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 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 78.63, which means the current valuation is very expensive for CPT.
CPT's Price/Earnings ratio is a bit cheaper when compared to the industry. CPT is cheaper than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, CPT is valued quite expensively.
CPT is valuated quite expensively with a Price/Forward Earnings ratio of 74.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, CPT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.63 | ||
| Fwd PE | 74.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPT is valued a bit cheaper than 70.00% of the companies in the same industry.
CPT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.32 | ||
| EV/EBITDA | 18.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)182.42
EPS Next 2Y-8.93%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
CPT has a Yearly Dividend Yield of 3.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.66, CPT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, CPT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of CPT has a limited annual growth rate of 4.99%.
CPT has paid a dividend for at least 10 years, which is a reliable track record.
CPT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.99%
Div Incr Years7
Div Non Decr Years14
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-8.93%
EPS Next 3Y4.76%
115.59
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.56%
Inst Owner Change0.78%
Ins Owners1.25%
Ins Owner Change2.8%
Market Cap12.35B
Analysts73.33
Price Target132.4 (14.54%)
Short Float %1.72%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend4.15
Dividend Growth(5Y)4.99%
DP384.83%
Div Incr Years7
Div Non Decr Years14
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)0.23%
PT rev (3m)1.48%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-11.43%
EPS NY rev (1m)-1.67%
EPS NY rev (3m)-19.36%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.63 | ||
| Fwd PE | 74.13 | ||
| P/S | 7.96 | ||
| P/FCF | 29.32 | ||
| P/OCF | 15.69 | ||
| P/B | 2.68 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 18.16 |
EPS(TTM)1.47
EY1.27%
EPS(NY)1.56
Fwd EY1.35%
FCF(TTM)3.94
FCFY3.41%
OCF(TTM)7.37
OCFY6.37%
SpS14.52
BVpS43.2
TBVpS43.2
PEG (NY)N/A
PEG (5Y)182.42
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 | 1.78 |
F-Score4
WACC7.63%
ROIC/WACC0.36
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-30.93%
EPS Next 2Y-8.93%
EPS Next 3Y4.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.42%
Revenue growth 3Y10.52%
Revenue growth 5Y8.46%
Sales Q2Q%1.94%
Revenue Next Year2.18%
Revenue Next 2Y2.72%
Revenue Next 3Y3.47%
Revenue Next 5Y4.86%
EBIT growth 1Y-25.24%
EBIT growth 3Y9.54%
EBIT growth 5Y3.5%
EBIT Next Year205.47%
EBIT Next 3Y49.68%
EBIT Next 5Y38.06%
FCF growth 1Y35.28%
FCF growth 3Y36.84%
FCF growth 5Y20.83%
OCF growth 1Y3.29%
OCF growth 3Y10.3%
OCF growth 5Y6.88%