EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - NYSE:DEA - US27616P3010 - REIT
21.5 USD
+0.1 (+0.47%)
21.55 USD
+0.05 (+0.23%)
We assign a fundamental rating of 4 out of 10 to DEA. DEA was compared to 127 industry peers in the Diversified REITs industry. There are concerns on the financial health of DEA while its profitability can be described as average. DEA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DEA had positive earnings in the past year.
In the past year DEA had a positive cash flow from operations.
DEA had positive earnings in each of the past 5 years.
In the past 5 years DEA always reported a positive cash flow from operatings.
1.2 Ratios
DEA has a Return On Assets of 0.39%. This is comparable to the rest of the industry: DEA outperforms 46.46% of its industry peers.
Looking at the Return On Equity, with a value of 0.99%, DEA is in line with its industry, outperforming 46.46% of the companies in the same industry.
DEA has a Return On Invested Capital of 2.06%. This is in the lower half of the industry: DEA underperforms 61.42% 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 3.07%.
The last Return On Invested Capital (2.06%) for DEA is above the 3 year average (1.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 0.99% | ||
| ROIC | 2.06% |
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 of 4.05%. This is comparable to the rest of the industry: DEA outperforms 48.03% of its industry peers.
DEA's Profit Margin has improved in the last couple of years.
DEA has a Operating Margin (25.97%) which is in line with its industry peers.
DEA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 66.83%, DEA is in line with its industry, outperforming 48.03% of the companies in the same industry.
In the last couple of years the Gross Margin of DEA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.97% | ||
| PM (TTM) | 4.05% | ||
| GM | 66.83% |
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.
DEA has more shares outstanding than it did 1 year ago.
DEA has more shares outstanding than it did 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 0.19, we must say that DEA is in the distress zone and has some risk of bankruptcy.
DEA's Altman-Z score of 0.19 is on the low side compared to the rest of the industry. DEA is outperformed by 66.93% of its industry peers.
DEA has a debt to FCF ratio of 14.18. This is a negative value and a sign of low solvency as DEA would need 14.18 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 14.18, DEA belongs to the best of the industry, outperforming 84.25% of the companies in the same industry.
DEA has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
DEA's Debt to Equity ratio of 1.23 is in line compared to the rest of the industry. DEA outperforms 51.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.18 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.34
WACC6.05%
2.3 Liquidity
DEA has a Current Ratio of 0.58. This is a bad value and indicates that DEA is not financially healthy enough and could expect problems in meeting its short term obligations.
DEA has a Current ratio of 0.58. This is in the lower half of the industry: DEA underperforms 76.38% of its industry peers.
A Quick Ratio of 0.58 indicates that DEA may have some problems paying its short term obligations.
The Quick ratio of DEA (0.58) is worse than 76.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.22%.
The Earnings Per Share has been growing by 13.70% on average over the past years. This is quite good.
The Revenue has grown by 10.42% in the past year. This is quite good.
DEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.38% yearly.
EPS 1Y (TTM)-32.22%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-84%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%15.2%
3.2 Future
DEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
DEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y-24.52%
EPS Next 2Y2.59%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue Next Year10.99%
Revenue Next 2Y9.17%
Revenue Next 3Y8.74%
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
DEA is valuated quite expensively with a Price/Earnings ratio of 69.35.
Compared to the rest of the industry, the Price/Earnings ratio of DEA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DEA to the average of the S&P500 Index (26.13), we can say DEA is valued expensively.
DEA is valuated quite expensively with a Price/Forward Earnings ratio of 43.00.
Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than 60.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.35. DEA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.35 | ||
| Fwd PE | 43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEA is valued a bit cheaper than the industry average as 60.63% of the companies are valued more expensively.
91.34% of the companies in the same industry are more expensive than DEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 13.43 |
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)5.06
EPS Next 2Y2.59%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
DEA has a Yearly Dividend Yield of 8.39%, which is a nice return.
DEA's Dividend Yield is rather good when compared to the industry average which is at 6.30. DEA pays more dividend than 82.68% of the companies in the same industry.
DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
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.
The dividend of DEA decreased recently.
Dividend Growth(5Y)18.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
773.12% 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.
DP773.12%
EPS Next 2Y2.59%
EPS Next 3Y12.52%
21.5
+0.1 (+0.47%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners74.61%
Inst Owner Change-1.95%
Ins Owners6.03%
Ins Owner Change0.35%
Market Cap975.02M
Revenue(TTM)327.31M
Net Income(TTM)13.25M
Analysts52.86
Price Target24.05 (11.86%)
Short Float %4.23%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP773.12%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.26%
Min EPS beat(2)-82.78%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-49.52%
Min EPS beat(4)-82.78%
Max EPS beat(4)-25.74%
EPS beat(8)0
Avg EPS beat(8)-33.61%
EPS beat(12)2
Avg EPS beat(12)-0.41%
EPS beat(16)2
Avg EPS beat(16)-9.37%
Revenue beat(2)2
Avg Revenue beat(2)1.25%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)1.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.42%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)4
Avg Revenue beat(16)-1.37%
PT rev (1m)-0.74%
PT rev (3m)-0.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.35 | ||
| Fwd PE | 43 | ||
| P/S | 2.98 | ||
| P/FCF | 8.44 | ||
| P/OCF | 4.03 | ||
| P/B | 0.73 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)0.31
EY1.44%
EPS(NY)0.5
Fwd EY2.33%
FCF(TTM)2.55
FCFY11.85%
OCF(TTM)5.33
OCFY24.8%
SpS7.22
BVpS29.4
TBVpS25.2
PEG (NY)N/A
PEG (5Y)5.06
Graham Number14.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 0.99% | ||
| ROCE | 2.61% | ||
| ROIC | 2.06% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.19% | ||
| OM | 25.97% | ||
| PM (TTM) | 4.05% | ||
| GM | 66.83% | ||
| FCFM | 35.3% |
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%
ROICexgc growth 3Y-1.96%
ROICexgc 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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.18 | ||
| Debt/EBITDA | 8.45 | ||
| Cap/Depr | 115.92% | ||
| Cap/Sales | 38.58% | ||
| Interest Coverage | 1.22 | ||
| Cash Conversion | 124.7% | ||
| Profit Quality | 872.32% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.19 |
F-Score5
WACC6.05%
ROIC/WACC0.34
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)-32.22%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-84%
EPS Next Y-24.52%
EPS Next 2Y2.59%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%15.2%
Revenue Next Year10.99%
Revenue Next 2Y9.17%
Revenue Next 3Y8.74%
Revenue Next 5Y7.62%
EBIT growth 1Y14.18%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year160.03%
EBIT Next 3Y42.64%
EBIT Next 5YN/A
FCF growth 1Y46.26%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y103.21%
OCF growth 3Y11.19%
OCF growth 5Y2.71%
EASTERLY GOVERNMENT PROPERTI / DEA FAQ
What is the fundamental rating for DEA stock?
ChartMill assigns a fundamental rating of 4 / 10 to DEA.
What is the valuation status of EASTERLY GOVERNMENT PROPERTI (DEA) stock?
ChartMill assigns a valuation rating of 4 / 10 to EASTERLY GOVERNMENT PROPERTI (DEA). This can be considered as Fairly Valued.
How profitable is EASTERLY GOVERNMENT PROPERTI (DEA) stock?
EASTERLY GOVERNMENT PROPERTI (DEA) has a profitability rating of 6 / 10.
What is the financial health of EASTERLY GOVERNMENT PROPERTI (DEA) stock?
The financial health rating of EASTERLY GOVERNMENT PROPERTI (DEA) is 2 / 10.
Can you provide the dividend sustainability for DEA stock?
The dividend rating of EASTERLY GOVERNMENT PROPERTI (DEA) is 6 / 10 and the dividend payout ratio is 773.12%.