EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
NYSE:DEA - New York Stock Exchange, Inc. - US27616P3010 - REIT - Currency: USD
DEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, DEA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DEA had positive earnings in the past year.
DEA had a positive operating cash flow in the past year.
Each year in the past 5 years DEA has been profitable.
DEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.54%, DEA perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
With a Return On Equity value of 1.31%, DEA perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
With a Return On Invested Capital value of 2.04%, DEA is not doing good in the industry: 65.89% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for DEA is in line with the industry average of 3.15%.
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.
In the last couple of years the Profit Margin of DEA has grown nicely.
Looking at the Operating Margin, with a value of 26.33%, DEA is in line with its industry, outperforming 58.14% of the companies in the same industry.
In the last couple of years the Operating Margin of DEA has grown nicely.
DEA has a Gross Margin (66.87%) 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 | 26.33% | ||
| 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.
DEA has more shares outstanding than it did 1 year ago.
DEA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DEA is higher compared to a year ago.
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.
The Altman-Z score of DEA (0.23) is worse than 65.89% of its industry peers.
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.
A Debt/Equity ratio of 1.20 is on the high side and indicates that DEA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.20, DEA is in line with its industry, outperforming 51.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 548.15 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.32
WACC6.33%
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 of 0.87. This is comparable to the rest of the industry: DEA outperforms 47.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.00%.
The Earnings Per Share has been growing by 13.70% on average over the past years. This is quite good.
Looking at the last year, DEA shows a small growth in Revenue. The Revenue has grown by 6.62% in the last year.
The Revenue has been growing slightly by 6.38% on average over the past years.
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 16.83% on average per year.
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y27.58%
EPS Next 2Y30.42%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue Next Year8.75%
Revenue Next 2Y8.34%
Revenue Next 3Y8.7%
Revenue Next 5Y7.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 51.74, the valuation of DEA can be described as expensive.
DEA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of DEA to the average of the S&P500 Index (26.25), we can say DEA is valued expensively.
Based on the Price/Forward Earnings ratio of 26.89, the valuation of DEA can be described as expensive.
DEA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEA is cheaper than 79.84% of the companies in the same industry.
DEA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.74 | ||
| Fwd PE | 26.89 |
4.2 Price Multiples
DEA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 334.02 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DEA may justify a higher PE ratio.
DEA's earnings are expected to grow with 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)3.78
EPS Next 2Y30.42%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.17%, DEA is a good candidate for dividend investing.
In the last 3 months the price of DEA has falen by -22.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
DEA's Dividend Yield is a higher than the industry average which is at 6.78.
DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
5.2 History
On average, the dividend of DEA grows each year by 18.09%, which is quite nice.
DEA has paid a dividend for at least 10 years, which is 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
DEA pays out 673.49% of its income as dividend. This is not a sustainable payout ratio.
DEA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP673.49%
EPS Next 2Y30.42%
EPS Next 3Y16.83%
21.73
-0.29 (-1.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners81.39%
Inst Owner Change5.08%
Ins Owners6.38%
Ins Owner Change0.19%
Market Cap975.68M
Analysts51.43
Price Target26.27 (20.89%)
Short Float %N/A
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.17% |
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)114.58%
PT rev (3m)104.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)175%
EPS NY rev (1m)150%
EPS NY rev (3m)150%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.74 | ||
| Fwd PE | 26.89 | ||
| P/S | 3.17 | ||
| P/FCF | 334.02 | ||
| P/OCF | 5.99 | ||
| P/B | 0.73 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)0.42
EY1.93%
EPS(NY)0.81
Fwd EY3.72%
FCF(TTM)0.07
FCFY0.3%
OCF(TTM)3.63
OCFY16.7%
SpS6.86
BVpS29.7
TBVpS26.24
PEG (NY)1.88
PEG (5Y)3.78
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 | 0.23 |
F-Score4
WACC6.33%
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 Y27.58%
EPS Next 2Y30.42%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue 1Y (TTM)6.62%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.07%
Revenue Next Year8.75%
Revenue Next 2Y8.34%
Revenue Next 3Y8.7%
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%