EASTERLY GOVERNMENT PROPERTI (DEA)
US27616P1030 - REIT
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 correct valuation and a medium growth rate.
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.
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 0.64%, DEA is in line with its industry, outperforming 51.22% of the companies in the same industry.
DEA has a Return On Equity of 1.44%. This is comparable to the rest of the industry: DEA outperforms 50.41% of its industry peers.
With a Return On Invested Capital value of 1.90%, DEA is not doing good in the industry: 67.48% of the companies in the same industry are doing better.
DEA had an Average Return On Invested Capital over the past 3 years of 2.01%. This is in line with the industry average of 2.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.44% | ||
| ROIC | 1.9% |
ROA(3y)0.92%
ROA(5y)0.71%
ROE(3y)2.06%
ROE(5y)1.57%
ROIC(3y)2.01%
ROIC(5y)1.84%
1.3 Margins
DEA has a Profit Margin (6.56%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DEA has grown nicely.
DEA has a Operating Margin of 23.76%. This is comparable to the rest of the industry: DEA outperforms 56.10% of its industry peers.
In the last couple of years the Operating Margin of DEA has grown nicely.
The Gross Margin of DEA (64.72%) is worse than 64.23% of its industry peers.
In the last couple of years the Gross Margin of DEA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.76% | ||
| PM (TTM) | 6.56% | ||
| GM | 64.72% |
OM growth 3Y0.93%
OM growth 5Y3.54%
PM growth 3Y9.91%
PM growth 5Y17.22%
GM growth 3Y-2.38%
GM growth 5Y-1.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DEA is destroying value.
Compared to 1 year ago, DEA has more shares outstanding
DEA has more shares outstanding than it did 5 years ago.
DEA has a worse debt/assets ratio than last year.
2.2 Solvency
DEA has an Altman-Z score of 0.42. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.42, DEA is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
The Debt to FCF ratio of DEA is 22.40, which is on the high side as it means it would take DEA, 22.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DEA (22.40) is better than 65.04% of its industry peers.
DEA has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
DEA's Debt to Equity ratio of 1.03 is in line compared to the rest of the industry. DEA outperforms 56.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 22.4 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.28
WACC6.76%
2.3 Liquidity
A Current Ratio of 1.69 indicates that DEA should not have too much problems paying its short term obligations.
DEA has a Current ratio of 1.69. This is in the better half of the industry: DEA outperforms 66.67% of its industry peers.
DEA has a Quick Ratio of 1.69. This is a normal value and indicates that DEA is financially healthy and should not expect problems in meeting its short term obligations.
DEA has a better Quick ratio (1.69) than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.94% over the past year.
Measured over the past years, DEA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.55% on average per year.
Looking at the last year, DEA shows a decrease in Revenue. The Revenue has decreased by -1.28% in the last year.
The Revenue has been growing by 12.33% on average over the past years. This is quite good.
EPS 1Y (TTM)41.94%
EPS 3Y8.2%
EPS 5Y11.55%
EPS growth Q2Q625%
Revenue 1Y (TTM)-1.28%
Revenue growth 3Y5.43%
Revenue growth 5Y12.33%
Revenue growth Q2Q2.22%
3.2 Future
Based on estimates for the next years, DEA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.81% on average per year.
Based on estimates for the next years, DEA will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y46.18%
EPS Next 2Y15.28%
EPS Next 3Y21.81%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y4.06%
Revenue Next 3Y6.86%
Revenue Next 5Y6.98%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.00 indicates a quite expensive valuation of DEA.
Based on the Price/Earnings ratio, DEA is valued a bit cheaper than 65.85% of the companies in the same industry.
DEA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 47.05, DEA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than the industry average as 61.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DEA to the average of the S&P500 Index (20.41), we can say DEA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 47.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DEA.
69.11% 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 | 20.05 | ||
| EV/EBITDA | 15.76 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DEA's earnings are expected to grow with 21.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)2.34
EPS Next 2Y15.28%
EPS Next 3Y21.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.87%, DEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.85, DEA pays a better dividend. On top of this DEA pays more dividend than 88.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.87% |
5.2 History
The dividend of DEA decreases each year by -1.28%.
DEA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.28%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
599.76% of the earnings are spent on dividend by DEA. This is not a sustainable payout ratio.
DP599.76%
EPS Next 2Y15.28%
EPS Next 3Y21.81%
EASTERLY GOVERNMENT PROPERTI
NYSE:DEA (5/3/2024, 7:04:00 PM)
After market: 11.88 0 (0%)11.88
-0.07 (-0.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 47.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.58
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.76% | ||
| PM (TTM) | 6.56% | ||
| GM | 64.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.94%
EPS 3Y8.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y46.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.28%
Revenue growth 3Y5.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y