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. DEA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DEA was profitable.
DEA had a positive operating cash flow in the past year.
DEA had positive earnings in each of the past 5 years.
DEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DEA has a Return On Assets (0.59%) which is comparable to the rest of the industry.
The Return On Equity of DEA (1.44%) is comparable to the rest of the industry.
DEA has a Return On Invested Capital of 1.99%. This is in the lower half of the industry: DEA underperforms 66.67% 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 3.17%.
The last Return On Invested Capital (1.99%) for DEA is above the 3 year average (1.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 1.44% | ||
| ROIC | 1.99% |
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 (6.29%) 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 (26.04%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DEA has grown nicely.
With a Gross Margin value of 66.54%, DEA perfoms like the industry average, outperforming 47.29% 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 | 26.04% | ||
| PM (TTM) | 6.29% | ||
| GM | 66.54% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DEA is destroying value.
DEA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DEA has been reduced 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 0.22, we must say that DEA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.22, DEA is doing worse than 64.34% of the companies in the same industry.
DEA has a debt to FCF ratio of 143.20. This is a negative value and a sign of low solvency as DEA would need 143.20 years to pay back of all of its debts.
With a Debt to FCF ratio value of 143.20, DEA perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
DEA has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
DEA has a Debt to Equity ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 143.2 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.31
WACC6.45%
2.3 Liquidity
DEA has a Current Ratio of 0.89. 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's Current ratio of 0.89 is in line compared to the rest of the industry. DEA outperforms 49.61% of its industry peers.
A Quick Ratio of 0.89 indicates that DEA may have some problems paying its short term obligations.
DEA's Quick ratio of 0.89 is in line compared to the rest of the industry. DEA outperforms 50.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
DEA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 335.00%, which is quite impressive.
DEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.70% yearly.
DEA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.16%.
DEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.38% yearly.
EPS 1Y (TTM)335%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%1360%
Revenue 1Y (TTM)5.16%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.08%
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 Year8.38%
Revenue Next 2Y8.17%
Revenue Next 3Y8.7%
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 accelerating.
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
DEA is valuated rather expensively with a Price/Earnings ratio of 23.33.
Based on the Price/Earnings ratio, DEA is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.29, DEA is valued at the same level.
A Price/Forward Earnings ratio of 62.81 indicates a quite expensive valuation of DEA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, DEA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 62.81 |
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 | 81.64 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
DEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DEA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DEA's earnings are expected to grow with 16.83% in the coming years.
PEG (NY)0.85
PEG (5Y)1.7
EPS Next 2Y30.42%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
DEA has a Yearly Dividend Yield of 8.86%, which is a nice return.
The stock price of DEA dropped by -25.09% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.64, DEA pays a better dividend. On top of this DEA pays more dividend than 81.40% of the companies listed in the same industry.
DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
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.
DEA has decreased its dividend recently.
Dividend Growth(5Y)18.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DEA pays out 610.08% 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.
DP610.08%
EPS Next 2Y30.42%
EPS Next 3Y16.83%
20.3
-0.01 (-0.05%)
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 Change-0.43%
Ins Owners6.38%
Ins Owner Change0.1%
Market Cap911.47M
Analysts51.43
Price Target26.27 (29.41%)
Short Float %N/A
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP610.08%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.99%
Min EPS beat(2)-44.99%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-19.19%
Min EPS beat(4)-44.99%
Max EPS beat(4)-0.99%
EPS beat(8)1
Avg EPS beat(8)-9.49%
EPS beat(12)2
Avg EPS beat(12)2%
EPS beat(16)3
Avg EPS beat(16)-0.19%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)-2.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-0.15%
Revenue beat(8)1
Avg Revenue beat(8)-1.5%
Revenue beat(12)2
Avg Revenue beat(12)-1.68%
Revenue beat(16)3
Avg Revenue beat(16)-1.6%
PT rev (1m)-4%
PT rev (3m)-4.76%
EPS NQ rev (1m)-9.09%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 62.81 | ||
| P/S | 3.02 | ||
| P/FCF | 81.64 | ||
| P/OCF | 5.6 | ||
| P/B | 0.69 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)0.87
EY4.29%
EPS(NY)0.32
Fwd EY1.59%
FCF(TTM)0.25
FCFY1.22%
OCF(TTM)3.62
OCFY17.84%
SpS6.73
BVpS29.42
TBVpS25.83
PEG (NY)0.85
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 1.44% | ||
| ROCE | 2.52% | ||
| ROIC | 1.99% | ||
| ROICexc | 2% | ||
| ROICexgc | 2.11% | ||
| OM | 26.04% | ||
| PM (TTM) | 6.29% | ||
| GM | 66.54% | ||
| FCFM | 3.7% |
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 | 1.21 | ||
| Debt/FCF | 143.2 | ||
| Debt/EBITDA | 9.14 | ||
| Cap/Depr | 157.24% | ||
| Cap/Sales | 50.15% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 92.93% | ||
| Profit Quality | 58.77% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.22 |
F-Score4
WACC6.45%
ROIC/WACC0.31
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)335%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%1360%
EPS Next Y27.58%
EPS Next 2Y30.42%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue 1Y (TTM)5.16%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.08%
Revenue Next Year8.38%
Revenue Next 2Y8.17%
Revenue Next 3Y8.7%
Revenue Next 5Y7.62%
EBIT growth 1Y18.49%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year155.14%
EBIT Next 3Y41.46%
EBIT Next 5YN/A
FCF growth 1Y-83.7%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y42.07%
OCF growth 3Y11.19%
OCF growth 5Y2.71%