EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - NYSE:DEA - US27616P3010 - REIT
23.65 USD
+0.23 (+0.98%)
23.65 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DEA. DEA was compared to 129 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.
In the past year DEA had a positive cash flow from operations.
In the past 5 years DEA has always been profitable.
In the past 5 years DEA always reported a positive cash flow from operatings.
1.2 Ratios
DEA has a Return On Assets (0.50%) which is comparable to the rest of the industry.
With a Return On Equity value of 1.27%, DEA perfoms like the industry average, outperforming 48.06% of the companies in the same industry.
DEA's Return On Invested Capital of 2.04% is on the low side compared to the rest of the industry. DEA is outperformed by 62.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DEA is in line with the industry average of 3.04%.
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 | 0.5% | ||
| ROE | 1.27% | ||
| 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
DEA has a Profit Margin (5.35%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DEA has grown nicely.
DEA has a Operating Margin (26.52%) 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 (67.16%) which is comparable to the rest of the industry.
DEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.52% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.16% |
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
DEA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DEA has more shares outstanding
The number of shares outstanding for DEA has been increased compared to 5 years ago.
Compared to 1 year ago, DEA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.23, we must say that DEA is in the distress zone and has some risk of bankruptcy.
DEA has a Altman-Z score of 0.23. This is in the lower half of the industry: DEA underperforms 65.89% of its industry peers.
DEA has a debt to FCF ratio of 501.57. This is a negative value and a sign of low solvency as DEA would need 501.57 years to pay back of all of its debts.
DEA has a Debt to FCF ratio (501.57) which is comparable to the rest of the industry.
DEA has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
DEA has a Debt to Equity ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 501.57 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.32
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.70 indicates that DEA may have some problems paying its short term obligations.
With a Current ratio value of 0.70, DEA is not doing good in the industry: 65.89% of the companies in the same industry are doing better.
A Quick Ratio of 0.70 indicates that DEA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, DEA is doing worse than 65.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.68%.
The Earnings Per Share has been growing by 13.70% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.59% in the past year.
Measured over the past years, DEA shows a small growth in Revenue. The Revenue has been growing by 6.38% on average per year.
EPS 1Y (TTM)-13.68%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-10%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
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 11.23% on average per year.
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y-9.63%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue Next Year10.31%
Revenue Next 2Y8.35%
Revenue Next 3Y8.19%
Revenue Next 5Y7.62%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 57.68, which means the current valuation is very expensive for DEA.
The rest of the industry has a similar Price/Earnings ratio as DEA.
DEA's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 37.17 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 70.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, DEA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.68 | ||
| Fwd PE | 37.17 |
4.2 Price Multiples
DEA's Enterprise Value to EBITDA ratio is in line with the industry average.
DEA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 312.24 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
The decent profitability rating of DEA may justify a higher PE ratio.
A more expensive valuation may be justified as DEA's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)N/A
PEG (5Y)4.21
EPS Next 2Y15.74%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
DEA has a Yearly Dividend Yield of 7.94%, which is a nice return.
DEA's Dividend Yield is a higher than the industry average which is at 6.63.
DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
5.2 History
The dividend of DEA is nicely growing with an annual growth rate of 18.09%!
DEA has paid a dividend for at least 10 years, which is 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
650.65% of the earnings are spent on dividend by DEA. This is not a sustainable payout ratio.
DEA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP650.65%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
23.65
+0.23 (+0.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.5%
Inst Owner Change-62.01%
Ins Owners6.09%
Ins Owner Change0.35%
Market Cap1.07B
Analysts52.86
Price Target24.23 (2.45%)
Short Float %4.54%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP650.65%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.15%
Min EPS beat(2)-44.55%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-29.07%
Min EPS beat(4)-44.99%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-23.39%
EPS beat(12)2
Avg EPS beat(12)-0.82%
EPS beat(16)2
Avg EPS beat(16)-4.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)1.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)1.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.44%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)0.71%
PT rev (3m)-4.36%
EPS NQ rev (1m)-24.59%
EPS NQ rev (3m)-29.23%
EPS NY rev (1m)-21.66%
EPS NY rev (3m)-29.17%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.68 | ||
| Fwd PE | 37.17 | ||
| P/S | 3.39 | ||
| P/FCF | 312.24 | ||
| P/OCF | 7.45 | ||
| P/B | 0.8 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)0.41
EY1.73%
EPS(NY)0.64
Fwd EY2.69%
FCF(TTM)0.08
FCFY0.32%
OCF(TTM)3.18
OCFY13.43%
SpS6.97
BVpS29.42
TBVpS25.28
PEG (NY)N/A
PEG (5Y)4.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 1.27% | ||
| ROCE | 2.58% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 2.17% | ||
| OM | 26.52% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.16% | ||
| FCFM | 1.09% |
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 Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 501.57 | ||
| Debt/EBITDA | 9.19 | ||
| Cap/Depr | 135.47% | ||
| Cap/Sales | 44.5% | ||
| Interest Coverage | 1.32 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 20.33% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.23 |
F-Score4
WACC6.37%
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)-13.68%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-10%
EPS Next Y-9.63%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
Revenue Next Year10.31%
Revenue Next 2Y8.35%
Revenue Next 3Y8.19%
Revenue Next 5Y7.62%
EBIT growth 1Y17.68%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year157.8%
EBIT Next 3Y42.1%
EBIT Next 5YN/A
FCF growth 1Y-95.73%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y19.42%
OCF growth 3Y11.19%
OCF growth 5Y2.71%