EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
NYSE:DEA - New York Stock Exchange, Inc. - US27616P3010 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to DEA. DEA was compared to 130 industry peers in the Diversified REITs industry. While DEA is still in line with the averages on profitability rating, there are concerns on its financial health. DEA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DEA was profitable.
DEA had a positive operating cash flow in the past year.
In the past 5 years DEA has always been profitable.
DEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DEA has a Return On Assets (0.54%) which is in line with its industry peers.
DEA's Return On Equity of 1.31% is in line compared to the rest of the industry. DEA outperforms 50.39% of its industry peers.
DEA has a worse Return On Invested Capital (2.04%) than 65.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DEA is in line with the industry average of 3.16%.
The 3 year average ROIC (1.98%) for DEA is below the current ROIC(2.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.31% | ||
| ROIC | 2.04% |
ROA(3y)0.77%
ROA(5y)0.77%
ROE(3y)1.77%
ROE(5y)1.72%
ROIC(3y)1.98%
ROIC(5y)1.97%
1.3 Margins
With a Profit Margin value of 5.66%, DEA perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
DEA's Profit Margin has improved in the last couple of years.
DEA has a Operating Margin (26.33%) which is comparable to the rest of the industry.
DEA's Operating Margin has improved in the last couple of years.
DEA has a Gross Margin of 66.87%. This is comparable to the rest of the industry: DEA outperforms 51.16% of its industry peers.
DEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.33% | ||
| PM (TTM) | 5.66% | ||
| GM | 66.87% |
OM growth 3Y-0.6%
OM growth 5Y9.25%
PM growth 3Y-16.41%
PM growth 5Y14.45%
GM growth 3Y-0.86%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DEA is destroying value.
The number of shares outstanding for DEA has been increased compared to 1 year ago.
Compared to 5 years ago, DEA has more shares outstanding
DEA has a worse debt/assets ratio than last year.
2.2 Solvency
DEA has an Altman-Z score of 0.25. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.25, DEA is doing worse than 65.12% of the companies in the same industry.
The Debt to FCF ratio of DEA is 548.14, which is on the high side as it means it would take DEA, 548.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DEA (548.14) is comparable to the rest of the industry.
DEA has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
DEA has a Debt to Equity ratio of 1.20. This is comparable to the rest of the industry: DEA outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 548.15 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.32
WACC6.48%
2.3 Liquidity
DEA has a Current Ratio of 0.87. This is a bad value and indicates that DEA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.87, DEA perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that DEA may have some problems paying its short term obligations.
DEA has a Quick ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for DEA have decreased strongly by -16.00% in the last year.
DEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.70% yearly.
The Revenue has been growing slightly by 6.62% in the past year.
DEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.38% yearly.
EPS 1Y (TTM)-16%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-44%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.07%
3.2 Future
Based on estimates for the next years, DEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.18% on average per year.
Based on estimates for the next years, DEA will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y15.35%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
EPS Next 5YN/A
Revenue Next Year9.31%
Revenue Next 2Y8.93%
Revenue Next 3Y8.49%
Revenue Next 5Y7.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 55.33 indicates a quite expensive valuation of DEA.
The rest of the industry has a similar Price/Earnings ratio as DEA.
The average S&P500 Price/Earnings ratio is at 27.41. DEA is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 32.41 indicates a quite expensive valuation of DEA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEA indicates a somewhat cheap valuation: DEA is cheaper than 73.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, DEA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.33 | ||
| Fwd PE | 32.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEA is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DEA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 357.23 | ||
| EV/EBITDA | 14.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DEA has a very decent profitability rating, which may justify a higher PE ratio.
DEA's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.6
PEG (5Y)4.04
EPS Next 2Y22.87%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.79%, DEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.44, DEA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, DEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
5.2 History
On average, the dividend of DEA grows each year by 18.09%, which is quite nice.
DEA has been paying a dividend for at least 10 years, so it has a reliable track record.
DEA has decreased its dividend recently.
Dividend Growth(5Y)18.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DEA pays out 673.49% of its income as dividend. This is not a sustainable payout ratio.
The dividend of DEA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP673.49%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
23.24
+0.13 (+0.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner Change0%
Ins Owners6.03%
Ins Owner Change0.35%
Market Cap1.04B
Analysts51.43
Price Target23.72 (2.07%)
Short Float %3.76%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP673.49%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.77%
Min EPS beat(2)-44.99%
Max EPS beat(2)-44.55%
EPS beat(4)0
Avg EPS beat(4)-27.83%
Min EPS beat(4)-44.99%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-22.36%
EPS beat(12)2
Avg EPS beat(12)0.33%
EPS beat(16)2
Avg EPS beat(16)-3.33%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-0.15%
Revenue beat(8)1
Avg Revenue beat(8)-1.75%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.54%
PT rev (1m)-6.38%
PT rev (3m)93.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)100%
EPS NY rev (1m)-9.58%
EPS NY rev (3m)126.04%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.33 | ||
| Fwd PE | 32.41 | ||
| P/S | 3.39 | ||
| P/FCF | 357.23 | ||
| P/OCF | 6.4 | ||
| P/B | 0.78 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 14.61 |
EPS(TTM)0.42
EY1.81%
EPS(NY)0.72
Fwd EY3.09%
FCF(TTM)0.07
FCFY0.28%
OCF(TTM)3.63
OCFY15.61%
SpS6.86
BVpS29.7
TBVpS26.24
PEG (NY)3.6
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.31% | ||
| ROCE | 2.59% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.16% | ||
| OM | 26.33% | ||
| PM (TTM) | 5.66% | ||
| GM | 66.87% | ||
| FCFM | 0.95% |
ROA(3y)0.77%
ROA(5y)0.77%
ROE(3y)1.77%
ROE(5y)1.72%
ROIC(3y)1.98%
ROIC(5y)1.97%
ROICexc(3y)1.99%
ROICexc(5y)1.98%
ROICexgc(3y)2.11%
ROICexgc(5y)2.1%
ROCE(3y)2.51%
ROCE(5y)2.49%
ROICexcg growth 3Y-1.96%
ROICexcg growth 5Y7.64%
ROICexc growth 3Y-1.42%
ROICexc growth 5Y8.25%
OM growth 3Y-0.6%
OM growth 5Y9.25%
PM growth 3Y-16.41%
PM growth 5Y14.45%
GM growth 3Y-0.86%
GM growth 5Y-0.31%
F-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 548.15 | ||
| Debt/EBITDA | 8.87 | ||
| Cap/Depr | 161.09% | ||
| Cap/Sales | 51.96% | ||
| Interest Coverage | 1.34 | ||
| Cash Conversion | 90.31% | ||
| Profit Quality | 16.75% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 0.25 |
F-Score4
WACC6.48%
ROIC/WACC0.32
Cap/Depr(3y)81.03%
Cap/Depr(5y)66.9%
Cap/Sales(3y)26.01%
Cap/Sales(5y)22.34%
Profit Quality(3y)243.21%
Profit Quality(5y)353.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-16%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-44%
EPS Next Y15.35%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
EPS Next 5YN/A
Revenue 1Y (TTM)6.62%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.07%
Revenue Next Year9.31%
Revenue Next 2Y8.93%
Revenue Next 3Y8.49%
Revenue Next 5Y7.62%
EBIT growth 1Y18.16%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year156.64%
EBIT Next 3Y41.46%
EBIT Next 5YN/A
FCF growth 1Y-96.52%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y32.03%
OCF growth 3Y11.19%
OCF growth 5Y2.71%