CAMDEN PROPERTY TRUST (CPT)
US1331311027 - REIT
We assign a fundamental rating of 4 out of 10 to CPT. CPT was compared to 21 industry peers in the Residential REITs industry. There are concerns on the financial health of CPT while its profitability can be described as average. CPT has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years CPT has been profitable.
CPT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPT has a Return On Assets (2.91%) which is in line with its industry peers.
CPT has a Return On Equity of 5.51%. This is comparable to the rest of the industry: CPT outperforms 57.14% of its industry peers.
With an excellent Return On Invested Capital value of 3.59%, CPT belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
CPT had an Average Return On Invested Capital over the past 3 years of 2.43%. This is in line with the industry average of 2.44%.
The last Return On Invested Capital (3.59%) for CPT is above the 3 year average (2.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 5.51% | ||
| ROIC | 3.59% |
ROA(3y)4.17%
ROA(5y)3.65%
ROE(3y)7.97%
ROE(5y)6.92%
ROIC(3y)2.43%
ROIC(5y)2.7%
1.3 Margins
CPT has a Profit Margin of 14.05%. This is comparable to the rest of the industry: CPT outperforms 52.38% of its industry peers.
CPT's Profit Margin has improved in the last couple of years.
The Operating Margin of CPT (20.85%) 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 (62.44%) than 71.43% of its industry peers.
CPT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.85% | ||
| PM (TTM) | 14.05% | ||
| GM | 62.44% |
OM growth 3Y-8.95%
OM growth 5Y-6.86%
PM growth 3Y29.13%
PM growth 5Y16.11%
GM growth 3Y0.78%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
CPT 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, CPT has more shares outstanding
CPT has more shares outstanding than it did 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 1.51. This is a bad value and indicates that CPT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.51, CPT belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
CPT has a debt to FCF ratio of 9.88. This is a negative value and a sign of low solvency as CPT would need 9.88 years to pay back of all of its debts.
CPT's Debt to FCF ratio of 9.88 is amongst the best of the industry. CPT outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that CPT is somewhat dependend on debt financing.
CPT has a Debt to Equity ratio of 0.75. This is in the better half of the industry: CPT outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 9.88 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.49
WACC7.35%
2.3 Liquidity
CPT has a Current Ratio of 0.06. 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 has a Current ratio of 0.06. This is amonst the worse of the industry: CPT underperforms 85.71% of its industry peers.
A Quick Ratio of 0.06 indicates that CPT may have some problems paying its short term obligations.
CPT has a Quick ratio of 0.06. This is amonst the worse of the industry: CPT underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
CPT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.32%.
CPT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.77% yearly.
CPT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.72%.
The Revenue has been growing by 9.57% on average over the past years. This is quite good.
EPS 1Y (TTM)-62.32%
EPS 3Y45.35%
EPS 5Y21.77%
EPS growth Q2Q62.96%
Revenue 1Y (TTM)14.72%
Revenue growth 3Y11.42%
Revenue growth 5Y9.57%
Revenue growth Q2Q4.55%
3.2 Future
CPT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.18% yearly.
Based on estimates for the next years, CPT will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
EPS Next Y-62.61%
EPS Next 2Y-40.85%
EPS Next 3Y-26.18%
EPS Next 5YN/A
Revenue Next Year8.69%
Revenue Next 2Y6.27%
Revenue Next 3Y5.86%
Revenue Next 5Y6.32%
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.
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 43.90.
The rest of the industry has a similar Price/Earnings ratio as CPT.
CPT is valuated expensively when we compare the Price/Earnings ratio to 25.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 46.86, CPT can be considered very expensive at the moment.
61.90% of the companies in the same industry are more expensive than CPT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CPT to the average of the S&P500 Index (20.08), we can say CPT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.9 | ||
| Fwd PE | 46.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPT is valued cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CPT is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.73 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
The decent profitability rating of CPT may justify a higher PE ratio.
CPT's earnings are expected to decrease with -26.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y-40.85%
EPS Next 3Y-26.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, CPT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.56, CPT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.63, CPT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of CPT has a limited annual growth rate of 5.78%.
CPT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
159.63% 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.
DP159.63%
EPS Next 2Y-40.85%
EPS Next 3Y-26.18%
CAMDEN PROPERTY TRUST
NYSE:CPT (12/1/2023, 7:04:00 PM)
After market: 93 +0.38 (+0.41%)92.62
+2.36 (+2.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-26 2023-10-26/amc
Earnings (Next)01-31 2024-01-31/amc
Inst Owners98.36%
Inst Owner Change-2.75%
Ins Owners1.17%
Ins Owner Change-0.34%
Market Cap9.89B
Analysts74.4
Price Target117.73 (27.11%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Dividend Growth(5Y)5.78%
DP159.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-28 2023-09-28 (1)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)72.66%
Min EPS beat(2)3.42%
Max EPS beat(2)141.9%
EPS beat(4)4
Avg EPS beat(4)47.65%
Min EPS beat(4)3.42%
Max EPS beat(4)141.9%
Revenue beat(2)1
Avg Revenue beat(2)48.06%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)97.15%
Revenue beat(4)1
Avg Revenue beat(4)23.56%
Min Revenue beat(4)-1.11%
Max Revenue beat(4)97.15%
PT rev (1m)-6.61%
PT rev (3m)-8.67%
EPS NQ rev (1m)-10.16%
EPS NQ rev (3m)-5.41%
EPS NY rev (1m)0%
EPS NY rev (3m)32.03%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.9 | ||
| Fwd PE | 46.86 | ||
| P/S | 5.18 | ||
| P/FCF | 26.73 | ||
| P/OCF | 12.82 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)2.11
EY2.28%
EPS(NY)1.98
Fwd EY2.13%
FCF(TTM)3.46
FCFY3.74%
OCF(TTM)7.22
OCFY7.8%
SpS17.87
BVpS45.56
TBVpS45.56
PEG (NY)N/A
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 5.51% | ||
| ROCE | 4.54% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 3.7% | ||
| OM | 20.85% | ||
| PM (TTM) | 14.05% | ||
| GM | 62.44% | ||
| FCFM | 19.38% |
ROA(3y)4.17%
ROA(5y)3.65%
ROE(3y)7.97%
ROE(5y)6.92%
ROIC(3y)2.43%
ROIC(5y)2.7%
ROICexc(3y)2.56%
ROICexc(5y)2.78%
ROICexgc(3y)2.64%
ROICexgc(5y)2.88%
ROCE(3y)3.07%
ROCE(5y)3.42%
ROICexcg growth 3Y-8.59%
ROICexcg growth 5Y-6.77%
ROICexc growth 3Y-8.24%
ROICexc growth 5Y-6.6%
OM growth 3Y-8.95%
OM growth 5Y-6.86%
PM growth 3Y29.13%
PM growth 5Y16.11%
GM growth 3Y0.78%
GM growth 5Y0.84%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 9.88 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 69.52% | ||
| Cap/Sales | 21.02% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 79.09% | ||
| Profit Quality | 137.96% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 1.51 |
F-Score4
WACC7.35%
ROIC/WACC0.49
Cap/Depr(3y)98.71%
Cap/Depr(5y)107.34%
Cap/Sales(3y)36.67%
Cap/Sales(5y)37.45%
Profit Quality(3y)56.24%
Profit Quality(5y)65.9%
Growth
EPS 1Y (TTM)-62.32%
EPS 3Y45.35%
EPS 5Y21.77%
EPS growth Q2Q62.96%
EPS Next Y-62.61%
EPS Next 2Y-40.85%
EPS Next 3Y-26.18%
EPS Next 5YN/A
Revenue 1Y (TTM)14.72%
Revenue growth 3Y11.42%
Revenue growth 5Y9.57%
Revenue growth Q2Q4.55%
Revenue Next Year8.69%
Revenue Next 2Y6.27%
Revenue Next 3Y5.86%
Revenue Next 5Y6.32%
EBIT growth 1Y26.28%
EBIT growth 3Y1.45%
EBIT growth 5Y2.06%
EBIT Next Year255.86%
EBIT Next 3Y56.64%
EBIT Next 5YN/A
FCF growth 1Y185.61%
FCF growth 3Y25.89%
FCF growth 5Y16.84%
OCF growth 1Y42.27%
OCF growth 3Y10.26%
OCF growth 5Y11.37%