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. CPT is quite expensive at the moment. It does show 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.
CPT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.71%, CPT is in line with its industry, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.39%, CPT is in line with its industry, outperforming 55.00% of the companies in the same industry.
CPT has a Return On Invested Capital (2.66%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CPT is in line with the industry average of 2.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 3.39% | ||
| ROIC | 2.66% |
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
CPT has a Profit Margin of 9.97%. This is comparable to the rest of the industry: CPT outperforms 60.00% of its industry peers.
CPT's Profit Margin has declined in the last couple of years.
CPT has a Operating Margin (18.78%) which is in line with its industry peers.
CPT's Operating Margin has declined in the last couple of years.
CPT's Gross Margin of 61.19% is fine compared to the rest 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 | 18.78% | ||
| PM (TTM) | 9.97% | ||
| GM | 61.19% |
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.
CPT has less shares outstanding than it did 1 year ago.
CPT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CPT has been reduced compared to a year ago.
2.2 Solvency
CPT has an Altman-Z score of 1.59. 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 1.59. This is in the better half of the industry: CPT outperforms 75.00% of its industry peers.
CPT has a debt to FCF ratio of 9.23. This is a negative value and a sign of low solvency as CPT would need 9.23 years to pay back of all of its debts.
CPT has a Debt to FCF ratio of 9.23. This is amongst the best in the industry. CPT outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that CPT is somewhat dependend on debt financing.
CPT has a Debt to Equity ratio of 0.83. This is in the better half of the industry: CPT outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 9.23 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.36
WACC7.41%
2.3 Liquidity
CPT has a Current 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.
With a Current ratio value of 0.10, CPT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.10 indicates that CPT may have some problems paying its short term obligations.
CPT has a Quick ratio of 0.10. This is in the lower half of the industry: CPT underperforms 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 -62.09%.
CPT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.43% yearly.
Looking at the last year, CPT shows a small growth in Revenue. The Revenue has grown by 0.77% 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)-62.09%
EPS 3Y13.97%
EPS 5Y0.43%
EPS Q2Q%-22.5%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y10.52%
Revenue growth 5Y8.46%
Sales Q2Q%2.42%
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 3.69% on average per year.
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-30.83%
EPS Next 2Y-9.23%
EPS Next 3Y3.69%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y2.66%
Revenue Next 3Y3.47%
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
With a Price/Earnings ratio of 76.46, CPT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CPT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.48. CPT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 68.12 indicates a quite expensive valuation of CPT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPT is on the same level as its industry peers.
CPT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.46 | ||
| Fwd PE | 68.12 |
4.2 Price Multiples
85.00% of the companies in the same industry are more expensive than CPT, based on the Enterprise Value to EBITDA ratio.
80.00% 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 | 27.21 | ||
| EV/EBITDA | 17.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)177.39
EPS Next 2Y-9.23%
EPS Next 3Y3.69%
5. Dividend
5.1 Amount
CPT has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 4.74, CPT is paying slightly less dividend.
CPT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of CPT has a limited annual growth rate of 4.99%.
CPT has been paying a dividend for at least 10 years, so it has 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
293.28% of the earnings are spent on dividend by CPT. This is not a sustainable payout ratio.
CPT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP293.28%
EPS Next 2Y-9.23%
EPS Next 3Y3.69%
105.52
-1.45 (-1.36%)
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 Change-0.1%
Ins Owners1.25%
Ins Owner Change4.41%
Market Cap11.27B
Analysts72.41
Price Target130.07 (23.27%)
Short Float %2.59%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend4.15
Dividend Growth(5Y)4.99%
DP293.28%
Div Incr Years7
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.57%
Min EPS beat(2)-0.59%
Max EPS beat(2)5.72%
EPS beat(4)1
Avg EPS beat(4)-4.05%
Min EPS beat(4)-12.31%
Max EPS beat(4)5.72%
EPS beat(8)4
Avg EPS beat(8)60.9%
EPS beat(12)7
Avg EPS beat(12)54.23%
EPS beat(16)8
Avg EPS beat(16)82.47%
Revenue beat(2)0
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-0.95%
Revenue beat(12)0
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)5.31%
PT rev (1m)-0.96%
PT rev (3m)-0.16%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-10.94%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-15.69%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.46 | ||
| Fwd PE | 68.12 | ||
| P/S | 7.22 | ||
| P/FCF | 27.21 | ||
| P/OCF | 14.22 | ||
| P/B | 2.46 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 17.18 |
EPS(TTM)1.38
EY1.31%
EPS(NY)1.55
Fwd EY1.47%
FCF(TTM)3.88
FCFY3.68%
OCF(TTM)7.42
OCFY7.03%
SpS14.61
BVpS42.94
TBVpS42.94
PEG (NY)N/A
PEG (5Y)177.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 3.39% | ||
| ROCE | 3.37% | ||
| ROIC | 2.66% | ||
| ROICexc | 2.67% | ||
| ROICexgc | 2.75% | ||
| OM | 18.78% | ||
| PM (TTM) | 9.97% | ||
| GM | 61.19% | ||
| FCFM | 26.55% |
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 | 0.83 | ||
| Debt/FCF | 9.23 | ||
| Debt/EBITDA | 4.32 | ||
| Cap/Depr | 63.86% | ||
| Cap/Sales | 24.25% | ||
| Interest Coverage | 2.12 | ||
| Cash Conversion | 89.5% | ||
| Profit Quality | 266.19% | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.59 |
F-Score4
WACC7.41%
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)-62.09%
EPS 3Y13.97%
EPS 5Y0.43%
EPS Q2Q%-22.5%
EPS Next Y-30.83%
EPS Next 2Y-9.23%
EPS Next 3Y3.69%
EPS Next 5YN/A
Revenue 1Y (TTM)0.77%
Revenue growth 3Y10.52%
Revenue growth 5Y8.46%
Sales Q2Q%2.42%
Revenue Next Year2.12%
Revenue Next 2Y2.66%
Revenue Next 3Y3.47%
Revenue Next 5Y4.86%
EBIT growth 1Y-7.46%
EBIT growth 3Y9.54%
EBIT growth 5Y3.5%
EBIT Next Year206.16%
EBIT Next 3Y49.67%
EBIT Next 5Y38.06%
FCF growth 1Y7.34%
FCF growth 3Y36.84%
FCF growth 5Y20.83%
OCF growth 1Y1.55%
OCF growth 3Y10.3%
OCF growth 5Y6.88%