CAMDEN PROPERTY TRUST (CPT)

US1331311027 - REIT

112.96  +1.73 (+1.56%)

After market: 112.96 0 (0%)

Fundamental Rating

4

Taking everything into account, CPT scores 4 out of 10 in our fundamental rating. CPT was compared to 20 industry peers in the Residential REITs industry. CPT scores excellent on profitability, but there are concerns on its financial health. CPT has a valuation in line with the averages, but on the other hand it scores bad on growth.



7

1. Profitability

1.1 Basic Checks

In the past year CPT was profitable.
CPT had a positive operating cash flow in the past year.
CPT had positive earnings in each of the past 5 years.
Each year in the past 5 years CPT had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 5.34%, CPT belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.88%, CPT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
The Return On Invested Capital of CPT (3.73%) is better than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPT is in line with the industry average of 2.59%.
The 3 year average ROIC (2.63%) for CPT is below the current ROIC(3.73%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.34%
ROE 9.88%
ROIC 3.73%
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's Profit Margin of 25.26% is fine compared to the rest of the industry. CPT outperforms 70.00% of its industry peers.
CPT's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 20.69%, CPT perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
CPT's Operating Margin has declined in the last couple of years.
CPT has a better Gross Margin (61.94%) than 75.00% of its industry peers.
In the last couple of years the Gross Margin of CPT has remained more or less at the same level.
Industry RankSector Rank
OM 20.69%
PM (TTM) 25.26%
GM 61.94%
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%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPT is destroying value.
Compared to 1 year ago, CPT has more shares outstanding
The number of shares outstanding for CPT has been increased compared to 5 years ago.
CPT has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.88 indicates that CPT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.88, CPT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CPT has a debt to FCF ratio of 9.71. This is a negative value and a sign of low solvency as CPT would need 9.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.71, CPT belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
CPT has a Debt/Equity ratio of 0.66. This is a neutral value indicating CPT is somewhat dependend on debt financing.
The Debt to Equity ratio of CPT (0.66) is better than 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 9.71
Altman-Z 1.88
ROIC/WACC0.5
WACC7.41%

2.3 Liquidity

CPT has a Current Ratio of 0.15. This is a bad value and indicates that CPT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CPT (0.15) is worse than 80.00% of its industry peers.
CPT has a Quick Ratio of 0.15. This is a bad value and indicates that CPT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.15, CPT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.15
Quick Ratio 0.15

3

3. Growth

3.1 Past

CPT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.05%.
Measured over the past years, CPT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.09% on average per year.
CPT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.90%.
The Revenue has been growing by 10.07% on average over the past years. This is quite good.
EPS 1Y (TTM)-27.05%
EPS 3Y44.23%
EPS 5Y18.09%
EPS Q2Q%97.44%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y13.89%
Revenue growth 5Y10.07%
Sales Q2Q%1.32%

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 -16.64% 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-47.53%
EPS Next 2Y-33.07%
EPS Next 3Y-16.64%
EPS Next 5YN/A
Revenue Next Year0.19%
Revenue Next 2Y0.96%
Revenue Next 3Y2.42%
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.
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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.55 indicates a quite expensive valuation of CPT.
100.00% of the companies in the same industry are more expensive than CPT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.53, CPT is valued at the same level.
The Price/Forward Earnings ratio is 67.78, which means the current valuation is very expensive for CPT.
The rest of the industry has a similar Price/Forward Earnings ratio as CPT.
CPT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.94.
Industry RankSector Rank
PE 27.55
Fwd PE 67.78

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CPT is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
CPT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CPT is cheaper than 90.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.88
EV/EBITDA 15.7

4.3 Compensation for Growth

CPT has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CPT's earnings are expected to decrease with -16.64% in the coming years.
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y-33.07%
EPS Next 3Y-16.64%

5

5. Dividend

5.1 Amount

CPT has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
CPT's Dividend Yield is comparable with the industry average which is at 4.22.
CPT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 3.77%

5.2 History

The dividend of CPT has a limited annual growth rate of 5.90%.
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)5.9%
Div Incr Years6
Div Non Decr Years13

5.3 Sustainability

90.81% 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.
DP90.81%
EPS Next 2Y-33.07%
EPS Next 3Y-16.64%

CAMDEN PROPERTY TRUST

NYSE:CPT (7/17/2024, 3:11:55 PM)

After market: 112.96 0 (0%)

112.96

+1.73 (+1.56%)

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 Cap12.03B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.77%
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 27.55
Fwd PE 67.78
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)1.52
Profitability
Industry RankSector Rank
ROA 5.34%
ROE 9.88%
ROCE
ROIC
ROICexc
ROICexgc
OM 20.69%
PM (TTM) 25.26%
GM 61.94%
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 Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 0.66
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)-27.05%
EPS 3Y44.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-47.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.9%
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