EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - NYSE:DEA - US27616P3010 - REIT
21.33 USD
-0.26 (-1.2%)
21.37 USD
+0.04 (+0.19%)
Overall DEA gets a fundamental rating of 4 out of 10. We evaluated DEA against 130 industry peers in the Diversified REITs industry. DEA has a medium profitability rating, but doesn't score so well on its financial health evaluation. DEA is valied quite expensively at the moment, while it does show 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.
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
DEA has a Return On Assets of 0.50%. This is comparable to the rest of the industry: DEA outperforms 48.46% of its industry peers.
DEA has a Return On Equity (1.27%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.04%, DEA is doing worse than 62.31% 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 3.02%.
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 | 0.5% | ||
| ROE | 1.27% | ||
| 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
DEA has a Profit Margin of 5.35%. This is comparable to the rest of the industry: DEA outperforms 53.08% of its industry peers.
DEA's Profit Margin has improved in the last couple of years.
DEA's Operating Margin of 26.52% is in line compared to the rest of the industry. DEA outperforms 59.23% of its industry peers.
In the last couple of years the Operating Margin of DEA has grown nicely.
Looking at the Gross Margin, with a value of 67.16%, DEA is in line with its industry, outperforming 51.54% of the companies in the same industry.
DEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.52% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.16% |
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.
Compared to 5 years ago, DEA has more shares outstanding
Compared to 1 year ago, DEA has a worse debt to assets ratio.
2.2 Solvency
DEA has an Altman-Z score of 0.21. 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 0.21, DEA is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
DEA has a debt to FCF ratio of 501.57. This is a negative value and a sign of low solvency as DEA would need 501.57 years to pay back of all of its debts.
DEA has a Debt to FCF ratio (501.57) which is in line with its industry peers.
DEA has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.29, DEA perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 501.57 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.33
WACC6.09%
2.3 Liquidity
DEA has a Current Ratio of 0.70. 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 0.70, DEA is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
DEA has a Quick Ratio of 0.70. 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 Quick ratio of 0.70 is on the low side compared to the rest of the industry. DEA is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.68%.
DEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.70% yearly.
The Revenue has been growing slightly by 7.59% in the past year.
Measured over the past years, DEA shows a small growth in Revenue. The Revenue has been growing by 6.38% on average per year.
EPS 1Y (TTM)-13.68%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-10%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
3.2 Future
The Earnings Per Share is expected to grow by 11.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y-9.63%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue Next Year10.87%
Revenue Next 2Y8.88%
Revenue Next 3Y8.37%
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.
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
A Price/Earnings ratio of 52.02 indicates a quite expensive valuation of DEA.
DEA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.02, DEA is valued quite expensively.
DEA is valuated quite expensively with a Price/Forward Earnings ratio of 33.52.
Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than 70.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DEA to the average of the S&P500 Index (22.57), we can say DEA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.02 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
DEA's Enterprise Value to EBITDA is on the same level as 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 | 281.61 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
The decent profitability rating of DEA may justify a higher PE ratio.
DEA's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.8
EPS Next 2Y15.74%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.98%, DEA is a good candidate for dividend investing.
DEA's Dividend Yield is a higher than the industry average which is at 6.68.
DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
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
650.65% 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.
DP650.65%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
21.33
-0.26 (-1.2%)
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 Change0%
Ins Owners6.03%
Ins Owner Change0.35%
Market Cap967.32M
Analysts52.86
Price Target24.57 (15.19%)
Short Float %4.84%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.98% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP650.65%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.15%
Min EPS beat(2)-44.55%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-29.07%
Min EPS beat(4)-44.99%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-23.39%
EPS beat(12)2
Avg EPS beat(12)-0.82%
EPS beat(16)2
Avg EPS beat(16)-4.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)1.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)1.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.44%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)1.4%
PT rev (3m)3.58%
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)-0.38%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.02 | ||
| Fwd PE | 33.52 | ||
| P/S | 3.06 | ||
| P/FCF | 281.61 | ||
| P/OCF | 6.72 | ||
| P/B | 0.72 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)0.41
EY1.92%
EPS(NY)0.64
Fwd EY2.98%
FCF(TTM)0.08
FCFY0.36%
OCF(TTM)3.18
OCFY14.89%
SpS6.97
BVpS29.42
TBVpS25.28
PEG (NY)N/A
PEG (5Y)3.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 1.27% | ||
| ROCE | 2.58% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 2.17% | ||
| OM | 26.52% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.16% | ||
| FCFM | 1.09% |
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 | 1.29 | ||
| Debt/FCF | 501.57 | ||
| Debt/EBITDA | 9.19 | ||
| Cap/Depr | 135.47% | ||
| Cap/Sales | 44.5% | ||
| Interest Coverage | 1.32 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 20.33% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.21 |
F-Score4
WACC6.09%
ROIC/WACC0.33
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)-13.68%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-10%
EPS Next Y-9.63%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
Revenue Next Year10.87%
Revenue Next 2Y8.88%
Revenue Next 3Y8.37%
Revenue Next 5Y7.62%
EBIT growth 1Y17.68%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year160.03%
EBIT Next 3Y42.64%
EBIT Next 5YN/A
FCF growth 1Y-95.73%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y19.42%
OCF growth 3Y11.19%
OCF growth 5Y2.71%