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 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 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.
DEA had a positive operating cash flow in the past year.
In the past 5 years DEA has always been profitable.
Each year in the past 5 years DEA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.54%, DEA is in line with its industry, outperforming 46.15% of the companies in the same industry.
DEA has a Return On Equity (1.31%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.04%, DEA is doing worse than 66.92% of the companies in the same industry.
DEA had an Average Return On Invested Capital over the past 3 years of 1.98%. This is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.04%) for DEA is above the 3 year average (1.98%), which is a sign of increasing profitability.
| 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 53.08% of the companies in the same industry.
In the last couple of years the Profit Margin of DEA has grown nicely.
DEA has a Operating Margin (26.33%) which is in line with its industry peers.
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.
The number of shares outstanding for DEA has been increased compared to 1 year ago.
The number of shares outstanding for DEA has been increased compared to 5 years ago.
DEA has a worse debt/assets ratio than last year.
2.2 Solvency
DEA has an Altman-Z score of 0.24. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
DEA has a Altman-Z score of 0.24. This is in the lower half of the industry: DEA underperforms 66.15% 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.
DEA's Debt to FCF ratio of 548.14 is in line compared to the rest of the industry. DEA outperforms 55.38% of its industry peers.
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 (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 548.15 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.32
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.87 indicates that DEA may have some problems paying its short term obligations.
DEA has a Current ratio of 0.87. This is comparable to the rest of the industry: DEA outperforms 46.92% of its industry peers.
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
DEA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 123.16%, which is quite impressive.
Measured over the past years, DEA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.70% on average per year.
The Revenue has been growing slightly by 5.16% in the past year.
The Revenue has been growing slightly by 6.38% on average over the past years.
EPS 1Y (TTM)123.16%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%640%
Revenue 1Y (TTM)5.16%
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 14.18% on average per year.
DEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y15.35%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
EPS Next 5YN/A
Revenue Next Year9.33%
Revenue Next 2Y8.96%
Revenue Next 3Y8.49%
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.
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
The Price/Earnings ratio is 20.82, which indicates a rather expensive current valuation of DEA.
Compared to the rest of the industry, the Price/Earnings ratio of DEA indicates a somewhat cheap valuation: DEA is cheaper than 77.69% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DEA to the average of the S&P500 Index (26.48), we can say DEA is valued slightly cheaper.
The Price/Forward Earnings ratio is 30.78, which means the current valuation is very expensive for DEA.
74.62% of the companies in the same industry are more expensive than DEA, based on the Price/Forward Earnings ratio.
DEA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 30.78 |
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 | 339.25 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
DEA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.36
PEG (5Y)1.52
EPS Next 2Y22.87%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
DEA has a Yearly Dividend Yield of 8.05%, which is a nice return.
DEA's Dividend Yield is a higher than the industry average which is at 6.72.
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 | 8.05% |
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 2Y22.87%
EPS Next 3Y14.18%
22.07
-0.3 (-1.34%)
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-3.57%
Ins Owners6.09%
Ins Owner Change0.35%
Market Cap990.94M
Analysts52.86
Price Target24.06 (9.02%)
Short Float %3.61%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.05% |
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)1.43%
PT rev (3m)96.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.73%
EPS NY rev (1m)0%
EPS NY rev (3m)126.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 30.78 | ||
| P/S | 3.22 | ||
| P/FCF | 339.25 | ||
| P/OCF | 6.08 | ||
| P/B | 0.74 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 14.39 |
EPS(TTM)1.06
EY4.8%
EPS(NY)0.72
Fwd EY3.25%
FCF(TTM)0.07
FCFY0.29%
OCF(TTM)3.63
OCFY16.44%
SpS6.86
BVpS29.7
TBVpS26.24
PEG (NY)1.36
PEG (5Y)1.52
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 | 0.24 |
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)123.16%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%640%
EPS Next Y15.35%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
EPS Next 5YN/A
Revenue 1Y (TTM)5.16%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
Revenue Next Year9.33%
Revenue Next 2Y8.96%
Revenue Next 3Y8.49%
Revenue Next 5Y7.62%
EBIT growth 1Y18.16%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year157.8%
EBIT Next 3Y42.1%
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%