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 129 industry peers in the Diversified REITs industry. EGP has an excellent profitability rating, but there are concerns on its financial health. EGP 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 EGP was profitable.
In the past year EGP had a positive cash flow from operations.
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
With an excellent Return On Assets value of 4.47%, EGP belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
EGP has a better Return On Equity (6.83%) than 79.07% of its industry peers.
With an excellent Return On Invested Capital value of 4.37%, EGP belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EGP is in line with the industry average of 3.15%.
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
EGP's Profit Margin of 34.60% is amongst the best of the industry. EGP outperforms 89.92% of its industry peers.
EGP's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 39.82%, EGP belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
In the last couple of years the Operating Margin of EGP has grown nicely.
Looking at the Gross Margin, with a value of 73.05%, EGP is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGP is destroying value.
Compared to 1 year ago, EGP has more shares outstanding
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 3.08. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EGP (3.08) is better than 96.90% of its industry peers.
EGP has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
EGP has a better Debt to Equity ratio (0.41) than 92.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.08 |
ROIC/WACC0.55
WACC8.02%
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 has a worse Current ratio (0.37) than 82.95% of its industry peers.
A Quick Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
EGP's Quick ratio of 0.37 is on the low side compared to the rest of the industry. EGP is outperformed by 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
EGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.87%.
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%.
The Revenue has been growing by 14.08% on average over the past years. This is quite good.
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
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.
The Revenue is expected to grow by 12.76% on average over the next years. This is quite good.
EPS Next Y3.91%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
EPS Next 5Y9.36%
Revenue Next Year10.68%
Revenue Next 2Y10.27%
Revenue Next 3Y10.55%
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.
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 36.07 indicates a quite expensive valuation of EGP.
The rest of the industry has a similar Price/Earnings ratio as EGP.
When comparing the Price/Earnings ratio of EGP to the average of the S&P500 Index (25.82), we can say EGP is valued slightly more expensively.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 30.88.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than 73.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EGP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.07 | ||
| Fwd PE | 30.88 |
4.2 Price Multiples
EGP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EGP is more expensive than 89.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.95 |
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)9.24
PEG (5Y)4.81
EPS Next 2Y7.13%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.37%.
EGP's Dividend Yield is slightly below the industry average, which is at 6.80.
Compared to an average S&P500 Dividend Yield of 2.39, EGP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
On average, the dividend of EGP grows each year by 11.97%, which is quite nice.
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
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%
164.82
-1.17 (-0.7%)
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 Change4.28%
Ins Owners0.87%
Ins Owner Change2.15%
Market Cap8.66B
Analysts79.2
Price Target190.74 (15.73%)
Short Float %2.15%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP115.76%
Div Incr Years12
Div Non Decr Years32
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)-1.81%
PT rev (3m)-4.13%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.07 | ||
| Fwd PE | 30.88 | ||
| P/S | 13.11 | ||
| P/FCF | N/A | ||
| P/OCF | 19.97 | ||
| P/B | 2.59 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 21.95 |
EPS(TTM)4.57
EY2.77%
EPS(NY)5.34
Fwd EY3.24%
FCF(TTM)-3.99
FCFYN/A
OCF(TTM)8.25
OCFY5.01%
SpS12.58
BVpS63.69
TBVpS60.82
PEG (NY)9.24
PEG (5Y)4.81
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 | 3.08 |
F-Score7
WACC8.02%
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)-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 5Y9.36%
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 5Y12.76%
EBIT growth 1Y11.97%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year73.51%
EBIT Next 3Y28.43%
EBIT Next 5Y24.92%
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%