EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
NYSE:EGP - New York Stock Exchange, Inc. - US2772761019 - REIT - Currency: USD
Overall EGP gets a fundamental rating of 5 out of 10. We evaluated EGP against 130 industry peers in the Diversified REITs industry. While EGP has a great profitability rating, there are quite some 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
EGP had positive earnings in the past year.
In the past year EGP had a positive cash flow from operations.
Each year in the past 5 years EGP has been profitable.
In the past 5 years EGP always reported a positive cash flow from operatings.
1.2 Ratios
EGP has a better Return On Assets (4.47%) than 90.77% of its industry peers.
EGP's Return On Equity of 6.83% is fine compared to the rest of the industry. EGP outperforms 79.23% of its industry peers.
The Return On Invested Capital of EGP (4.37%) is better than 83.08% of its industry peers.
EGP had an Average Return On Invested Capital over the past 3 years of 4.12%. This is in line with the industry average of 3.16%.
The 3 year average ROIC (4.12%) for EGP is below the current ROIC(4.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 6.83% | ||
| ROIC | 4.37% |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.12%
ROIC(5y)4.02%
1.3 Margins
Looking at the Profit Margin, with a value of 34.60%, EGP belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of EGP has remained more or less at the same level.
The Operating Margin of EGP (39.82%) is better than 86.15% of its industry peers.
EGP's Operating Margin has improved in the last couple of years.
The Gross Margin of EGP (73.05%) is better than 67.69% of its industry peers.
EGP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.82% | ||
| PM (TTM) | 34.6% | ||
| GM | 73.05% |
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
EGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EGP has been increased compared to 1 year ago.
Compared to 5 years ago, EGP has more shares outstanding
The debt/assets ratio for EGP has been reduced compared to a year ago.
2.2 Solvency
EGP has an Altman-Z score of 3.17. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EGP (3.17) is better than 97.69% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that EGP is not too dependend on debt financing.
EGP's Debt to Equity ratio of 0.41 is amongst the best of the industry. EGP outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.17 |
ROIC/WACC0.52
WACC8.37%
2.3 Liquidity
EGP has a Current Ratio of 0.37. 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 0.37 is on the low side compared to the rest of the industry. EGP is outperformed by 82.31% of its industry peers.
A Quick Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
The Quick ratio of EGP (0.37) is worse than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for EGP have decreased by -0.87% in the last year.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
EGP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.98%.
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)-0.87%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-6.56%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%13.11%
3.2 Future
Based on estimates for the next years, EGP will show a small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
Based on estimates for the next years, EGP will show a quite strong growth in Revenue. The Revenue will grow by 11.79% on average per year.
EPS Next Y3.91%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
EPS Next 5Y7.44%
Revenue Next Year10.68%
Revenue Next 2Y10.27%
Revenue Next 3Y10.55%
Revenue Next 5Y11.79%
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
EGP is valuated quite expensively with a Price/Earnings ratio of 37.17.
EGP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, EGP is valued a bit more expensive.
With a Price/Forward Earnings ratio of 31.83, EGP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than 73.08% of the companies in the same industry.
EGP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 31.83 |
4.2 Price Multiples
EGP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EGP is more expensive than 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.53 |
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)9.52
PEG (5Y)4.96
EPS Next 2Y7.13%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, EGP has a reasonable but not impressive dividend return.
EGP's Dividend Yield is slightly below the industry average, which is at 6.64.
Compared to an average S&P500 Dividend Yield of 2.42, EGP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.97%
Div Incr Years13
Div Non Decr Years33
5.3 Sustainability
115.76% of the earnings are spent on dividend by EGP. This is not a sustainable payout ratio.
The dividend of EGP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP115.76%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
169.88
+0.02 (+0.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.04%
Inst Owner Change4.33%
Ins Owners0.89%
Ins Owner Change2.6%
Market Cap8.92B
Analysts79.2
Price Target190.29 (12.01%)
Short Float %2.47%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP115.76%
Div Incr Years13
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.02%
Min EPS beat(2)0.2%
Max EPS beat(2)1.84%
EPS beat(4)3
Avg EPS beat(4)0.99%
Min EPS beat(4)-1.17%
Max EPS beat(4)3.08%
EPS beat(8)7
Avg EPS beat(8)6.93%
EPS beat(12)11
Avg EPS beat(12)9.73%
EPS beat(16)14
Avg EPS beat(16)15.5%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)1.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)1.57%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)9
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)0.62%
PT rev (1m)-0.24%
PT rev (3m)-5.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.17 | ||
| Fwd PE | 31.83 | ||
| P/S | 13.51 | ||
| P/FCF | N/A | ||
| P/OCF | 20.59 | ||
| P/B | 2.67 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 22.53 |
EPS(TTM)4.57
EY2.69%
EPS(NY)5.34
Fwd EY3.14%
FCF(TTM)-3.99
FCFYN/A
OCF(TTM)8.25
OCFY4.86%
SpS12.58
BVpS63.69
TBVpS60.82
PEG (NY)9.52
PEG (5Y)4.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 6.83% | ||
| ROCE | 5.54% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 4.55% | ||
| OM | 39.82% | ||
| PM (TTM) | 34.6% | ||
| GM | 73.05% | ||
| FCFM | N/A |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.12%
ROIC(5y)4.02%
ROICexc(3y)4.13%
ROICexc(5y)4.03%
ROICexgc(3y)4.3%
ROICexgc(5y)4.18%
ROCE(3y)5.21%
ROCE(5y)5.09%
ROICexcg growth 3Y4.65%
ROICexcg growth 5Y3.51%
ROICexc growth 3Y4.42%
ROICexc growth 5Y3.37%
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-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 326.8% | ||
| Cap/Sales | 97.36% | ||
| Interest Coverage | 7.23 | ||
| Cash Conversion | 94.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 3.17 |
F-Score7
WACC8.37%
ROIC/WACC0.52
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)-0.87%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-6.56%
EPS Next Y3.91%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
EPS Next 5Y7.44%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%13.11%
Revenue Next Year10.68%
Revenue Next 2Y10.27%
Revenue Next 3Y10.55%
Revenue Next 5Y11.79%
EBIT growth 1Y11.97%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year73.51%
EBIT Next 3Y28.43%
EBIT Next 5Y24.05%
FCF growth 1Y-37.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.25%
OCF growth 3Y17.55%
OCF growth 5Y16.29%