CAMDEN PROPERTY TRUST (CPT) Stock Fundamental Analysis
NYSE:CPT - New York Stock Exchange, Inc. - US1331311027 - REIT - Currency: USD
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 has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, CPT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CPT had positive earnings in the past year.
CPT had a positive operating cash flow in the past year.
In the past 5 years CPT has always been profitable.
In the past 5 years CPT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.31%, CPT is doing good in the industry, outperforming 65.00% of the companies in the same industry.
CPT's Return On Equity of 2.56% is in line compared to the rest of the industry. CPT outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.73%, CPT is in line with its industry, outperforming 60.00% of the companies in the same industry.
CPT had an Average Return On Invested Capital over the past 3 years of 2.74%. This 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.
CPT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.20%, CPT is in line with its industry, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CPT has declined.
CPT has a Gross Margin of 61.26%. This is in the better half of the industry: CPT outperforms 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 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
CPT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, CPT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that CPT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CPT (1.78) is better than 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 has a better Debt to FCF ratio (8.87) than 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.
CPT's Debt to Equity ratio of 0.81 is fine compared to the rest of the industry. CPT outperforms 70.00% of its industry peers.
| 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 worse Current ratio (0.10) than 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.
Looking at the last year, CPT shows a very negative growth in Revenue. The Revenue has decreased by -19.42% in the last year.
Measured over the past years, CPT shows a quite strong growth in Revenue. The Revenue has been growing by 8.46% on average per year.
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 4.86% 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 2Y2.69%
Revenue Next 3Y3.55%
Revenue Next 5Y4.86%
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 accelerating.
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 78.65.
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 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 73.85, the valuation of CPT can be described as expensive.
CPT's Price/Forward Earnings is on the same level as the industry average.
CPT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.65 | ||
| Fwd PE | 73.85 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than CPT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPT indicates a somewhat cheap valuation: CPT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.33 | ||
| EV/EBITDA | 18.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)182.47
EPS Next 2Y-8.75%
EPS Next 3Y4.13%
5. Dividend
5.1 Amount
CPT has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
CPT's Dividend Yield is slightly below the industry average, which is at 4.54.
CPT's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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 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 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-8.75%
EPS Next 3Y4.13%
115.62
-0.28 (-0.24%)
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 Target133.03 (15.06%)
Short Float %1.72%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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)0.7%
PT rev (3m)1.96%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)-11.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-18%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.65 | ||
| Fwd PE | 73.85 | ||
| P/S | 7.96 | ||
| P/FCF | 29.33 | ||
| P/OCF | 15.69 | ||
| P/B | 2.68 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 18.16 |
EPS(TTM)1.47
EY1.27%
EPS(NY)1.57
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)182.47
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-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 2Y2.69%
Revenue Next 3Y3.55%
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%