EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
NYSE:EGP - New York Stock Exchange, Inc. - US2772761019 - REIT - Currency: USD
Taking everything into account, EGP scores 5 out of 10 in our fundamental rating. EGP was compared to 130 industry peers in the Diversified REITs industry. EGP has an excellent profitability rating, but there are concerns on its financial health. EGP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EGP was profitable.
EGP had a positive operating cash flow in the past year.
EGP had positive earnings in each of the past 5 years.
In the past 5 years EGP always reported a positive cash flow from operatings.
1.2 Ratios
EGP has a Return On Assets of 4.49%. This is amongst the best in the industry. EGP outperforms 91.54% of its industry peers.
The Return On Equity of EGP (6.92%) is better than 81.54% of its industry peers.
EGP has a Return On Invested Capital of 4.29%. This is amongst the best in the industry. EGP outperforms 82.31% of its industry peers.
EGP had an Average Return On Invested Capital over the past 3 years of 4.07%. This is in line with the industry average of 3.19%.
The last Return On Invested Capital (4.29%) for EGP is above the 3 year average (4.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 6.92% | ||
| ROIC | 4.29% |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.07%
ROIC(5y)3.99%
1.3 Margins
Looking at the Profit Margin, with a value of 35.57%, EGP belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
EGP's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 39.86%, EGP belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
EGP's Operating Margin has improved in the last couple of years.
EGP has a Gross Margin of 72.79%. This is in the better half of the industry: EGP outperforms 68.46% of its industry peers.
In the last couple of years the Gross Margin of EGP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.86% | ||
| PM (TTM) | 35.57% | ||
| GM | 72.79% |
OM growth 3Y2.65%
OM growth 5Y2.53%
PM growth 3Y-2.58%
PM growth 5Y-0.63%
GM growth 3Y0.41%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGP is destroying value.
The number of shares outstanding for EGP has been increased compared to 1 year ago.
The number of shares outstanding for EGP has been increased compared to 5 years ago.
EGP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.93 indicates that EGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
EGP has a Altman-Z score of 2.93. This is amongst the best in the industry. EGP outperforms 96.92% of its industry peers.
EGP has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
EGP has a Debt to Equity ratio of 0.46. This is amongst the best in the industry. EGP outperforms 91.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.93 |
ROIC/WACC0.55
WACC7.84%
2.3 Liquidity
EGP has a Current Ratio of 0.34. This is a bad value and indicates that EGP is not financially healthy enough and could expect problems in meeting its short term obligations.
EGP's Current ratio of 0.34 is on the low side compared to the rest of the industry. EGP is outperformed by 84.62% of its industry peers.
A Quick Ratio of 0.34 indicates that EGP may have some problems paying its short term obligations.
EGP's Quick ratio of 0.34 is on the low side compared to the rest of the industry. EGP is outperformed by 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
EGP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.44%.
EGP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
The Revenue has grown by 12.21% in the past year. This is quite good.
EGP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.08% yearly.
EPS 1Y (TTM)5.44%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-14.07%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%9.99%
3.2 Future
EGP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
EGP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.76% yearly.
EPS Next Y4.99%
EPS Next 2Y8.09%
EPS Next 3Y7.73%
EPS Next 5Y9.36%
Revenue Next Year10.37%
Revenue Next 2Y10.58%
Revenue Next 3Y9.6%
Revenue Next 5Y12.76%
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
The Price/Earnings ratio is 32.95, which means the current valuation is very expensive for EGP.
Compared to the rest of the industry, the Price/Earnings ratio of EGP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.29, EGP is valued at the same level.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 31.38.
73.08% of the companies in the same industry are more expensive than EGP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, EGP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 31.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGP is valued more expensive than 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EGP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.6
PEG (5Y)4.4
EPS Next 2Y8.09%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, EGP has a reasonable but not impressive dividend return.
EGP's Dividend Yield is slightly below the industry average, which is at 16.87.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of EGP is nicely growing with an annual growth rate of 11.97%!
EGP has been paying a dividend for at least 10 years, so it has a reliable track record.
EGP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.97%
Div Incr Years12
Div Non Decr Years32
5.3 Sustainability
EGP pays out 111.00% of its income as dividend. This is not a sustainable payout ratio.
EGP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP111%
EPS Next 2Y8.09%
EPS Next 3Y7.73%
NYSE:EGP (4/21/2025, 1:05:52 PM)
153.195
-6.71 (-4.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.92%
Inst Owner Change0.19%
Ins Owners0.87%
Ins Owner Change2.15%
Market Cap8.01B
Analysts79.2
Price Target202.24 (32.01%)
Short Float %3.83%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP111%
Div Incr Years12
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.48%
Min EPS beat(2)-1.17%
Max EPS beat(2)0.2%
EPS beat(4)3
Avg EPS beat(4)4.41%
Min EPS beat(4)-1.17%
Max EPS beat(4)15.51%
EPS beat(8)7
Avg EPS beat(8)8.81%
EPS beat(12)10
Avg EPS beat(12)9.52%
EPS beat(16)14
Avg EPS beat(16)16.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)9
Avg Revenue beat(12)0.47%
Revenue beat(16)12
Avg Revenue beat(16)0.68%
PT rev (1m)0.38%
PT rev (3m)0.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 31.38 | ||
| P/S | 12.51 | ||
| P/FCF | N/A | ||
| P/OCF | 19.22 | ||
| P/B | 2.43 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 22.15 |
EPS(TTM)4.65
EY3.04%
EPS(NY)4.88
Fwd EY3.19%
FCF(TTM)-5.31
FCFYN/A
OCF(TTM)7.97
OCFY5.2%
SpS12.25
BVpS62.98
TBVpS60.11
PEG (NY)6.6
PEG (5Y)4.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 6.92% | ||
| ROCE | 5.43% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 4.47% | ||
| OM | 39.86% | ||
| PM (TTM) | 35.57% | ||
| GM | 72.79% | ||
| FCFM | N/A |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.07%
ROIC(5y)3.99%
ROICexc(3y)4.09%
ROICexc(5y)4.01%
ROICexgc(3y)4.25%
ROICexgc(5y)4.15%
ROCE(3y)5.15%
ROCE(5y)5.06%
ROICexcg growth 3Y3.51%
ROICexcg growth 5Y2.84%
ROICexc growth 3Y3.33%
ROICexc growth 5Y2.72%
OM growth 3Y2.65%
OM growth 5Y2.53%
PM growth 3Y-2.58%
PM growth 5Y-0.63%
GM growth 3Y0.41%
GM growth 5Y0.26%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 366.57% | ||
| Cap/Sales | 108.45% | ||
| Interest Coverage | 6.86 | ||
| Cash Conversion | 93.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 2.93 |
F-Score5
WACC7.84%
ROIC/WACC0.55
Cap/Depr(3y)356.47%
Cap/Depr(5y)350.31%
Cap/Sales(3y)108.21%
Cap/Sales(5y)107.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.44%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-14.07%
EPS Next Y4.99%
EPS Next 2Y8.09%
EPS Next 3Y7.73%
EPS Next 5Y9.36%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%9.99%
Revenue Next Year10.37%
Revenue Next 2Y10.58%
Revenue Next 3Y9.6%
Revenue Next 5Y12.76%
EBIT growth 1Y11.86%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year74.4%
EBIT Next 3Y29.45%
EBIT Next 5Y24.92%
FCF growth 1Y-4.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.18%
OCF growth 3Y17.55%
OCF growth 5Y16.29%