CAMDEN PROPERTY TRUST (CPT)
US1331311027 - REIT
Overall CPT gets a fundamental rating of 5 out of 10. We evaluated CPT against 21 industry peers in the Residential REITs industry. While CPT belongs to the best of the industry regarding profitability, there are concerns on its financial health. CPT is not valued too expensively and it also shows 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.
Each year in the past 5 years CPT has been profitable.
Each year in the past 5 years CPT had a positive operating cash flow.
1.2 Ratios
CPT's Return On Assets of 4.74% is amongst the best of the industry. CPT outperforms 85.71% of its industry peers.
CPT's Return On Equity of 8.92% is fine compared to the rest of the industry. CPT outperforms 71.43% of its industry peers.
With an excellent Return On Invested Capital value of 3.77%, CPT belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CPT is in line with the industry average of 2.53%.
The last Return On Invested Capital (3.77%) for CPT is above the 3 year average (2.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 8.92% | ||
| ROIC | 3.77% |
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 has a Profit Margin of 23.15%. This is in the better half of the industry: CPT outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of CPT has grown nicely.
CPT has a Operating Margin (20.90%) which is in line with its industry peers.
CPT's Operating Margin has declined in the last couple of years.
CPT has a Gross Margin of 62.10%. This is in the better half of the industry: CPT outperforms 71.43% 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 | 20.9% | ||
| PM (TTM) | 23.15% | ||
| GM | 62.1% |
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%
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 more shares outstanding
Compared to 5 years ago, CPT has more shares outstanding
Compared to 1 year ago, CPT has a worse debt to assets ratio.
2.2 Solvency
CPT has an Altman-Z score of 1.62. 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 1.62, 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 9.68. This is a negative value and a sign of low solvency as CPT would need 9.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.68, CPT belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that CPT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, CPT belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 9.68 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.5
WACC7.58%
2.3 Liquidity
CPT has a Current Ratio of 0.28. 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 0.28. This is in the lower half of the industry: CPT underperforms 66.67% of its industry peers.
A Quick Ratio of 0.28 indicates that CPT may have some problems paying its short term obligations.
CPT's Quick ratio of 0.28 is on the low side compared to the rest of the industry. CPT is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
CPT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.16%.
CPT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.09% yearly.
CPT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
Measured over the past years, CPT shows a quite strong growth in Revenue. The Revenue has been growing by 10.07% on average per year.
EPS 1Y (TTM)-34.16%
EPS 3Y44.23%
EPS 5Y18.09%
EPS growth Q2Q383.33%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y13.89%
Revenue growth 5Y10.07%
Revenue growth Q2Q3.11%
3.2 Future
The Earnings Per Share is expected to decrease by -15.85% on average over the next years. This is quite bad
Based on estimates for the next years, CPT will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y-53.78%
EPS Next 2Y-30.55%
EPS Next 3Y-15.85%
EPS Next 5YN/A
Revenue Next Year0.9%
Revenue Next 2Y1.15%
Revenue Next 3Y2.71%
Revenue Next 5Y5.62%
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
With a Price/Earnings ratio of 26.36, CPT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CPT is valued cheaper than 95.24% of the companies in the same industry.
CPT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.95.
The Price/Forward Earnings ratio is 57.03, which means the current valuation is very expensive for CPT.
CPT's Price/Forward Earnings is on the same level as the industry average.
CPT is valuated expensively when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 57.03 |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than CPT, based on the Enterprise Value to EBITDA ratio.
90.48% of the companies in the same industry are more expensive than CPT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.8 | ||
| EV/EBITDA | 14.48 |
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 -15.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y-30.55%
EPS Next 3Y-15.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.32%, CPT is a good candidate for dividend investing.
CPT's Dividend Yield is comparable with the industry average which is at 4.63.
CPT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
The dividend of CPT has a limited annual growth rate of 5.90%.
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)5.9%
Div Incr Years6
Div Non Decr Years13
5.3 Sustainability
97.84% 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.
DP97.84%
EPS Next 2Y-30.55%
EPS Next 3Y-15.85%
CAMDEN PROPERTY TRUST
NYSE:CPT (4/22/2024, 7:04:00 PM)
After market: 98.07 0 (0%)98.07
+1.78 (+1.85%)
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 Cap10.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 57.03 | ||
| 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)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 8.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.9% | ||
| PM (TTM) | 23.15% | ||
| GM | 62.1% | ||
| 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| 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)
Growth
EPS 1Y (TTM)-34.16%
EPS 3Y44.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y-53.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.73%
Revenue growth 3Y13.89%
Revenue growth 5Y
Revenue growth 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