EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
NYSE:EGP - US2772761019 - REIT
169.5 USD
+5.72 (+3.49%)
169.5 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EGP. EGP was compared to 129 industry peers in the Diversified REITs industry. While EGP belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, EGP is valued expensive at the moment.
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.
In the past 5 years EGP has always 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 (4.56%) than 90.70% of its industry peers.
EGP has a better Return On Equity (6.94%) than 79.84% of its industry peers.
With an excellent Return On Invested Capital value of 4.42%, EGP belongs to the best of the industry, outperforming 85.27% 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 3.07%.
The last Return On Invested Capital (4.42%) for EGP is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 6.94% | ||
| ROIC | 4.42% |
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 34.85%, EGP belongs to the top of the industry, outperforming 87.60% of the companies in the same industry.
EGP's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 39.61%, 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.
EGP's Gross Margin of 73.11% is fine compared to the rest of the industry. EGP outperforms 67.44% of its industry peers.
EGP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.61% | ||
| PM (TTM) | 34.85% | ||
| GM | 73.11% |
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.
EGP has more shares outstanding than it did 1 year ago.
EGP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EGP has an improved debt to assets ratio.
2.2 Solvency
EGP has an Altman-Z score of 3.07. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.07, EGP belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
EGP has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.40, EGP belongs to the best of the industry, outperforming 93.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.07 |
ROIC/WACC0.56
WACC7.84%
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 Current ratio of 0.37. This is amonst the worse of the industry: EGP underperforms 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 has a worse Quick ratio (0.37) than 82.17% 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 -3.14% in the last year.
Measured over the past 5 years, EGP shows a small growth in Earnings Per Share. The EPS has been growing by 7.49% on average per year.
EGP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.44%.
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)-3.14%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%5.26%
Revenue 1Y (TTM)11.44%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.44%
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 7.27% on average per year.
EGP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.63% yearly.
EPS Next Y2.38%
EPS Next 2Y5.58%
EPS Next 3Y2.45%
EPS Next 5Y7.27%
Revenue Next Year11.39%
Revenue Next 2Y10.38%
Revenue Next 3Y10.28%
Revenue Next 5Y11.63%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 36.61, the valuation of EGP can be described as expensive.
EGP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. EGP is valued slightly more expensive when compared to this.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 32.70.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, EGP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.61 | ||
| Fwd PE | 32.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGP indicates a rather expensive valuation: EGP more expensive than 88.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EGP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of EGP may justify a higher PE ratio.
PEG (NY)15.41
PEG (5Y)4.89
EPS Next 2Y5.58%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, EGP has a reasonable but not impressive dividend return.
EGP's Dividend Yield is slightly below the industry average, which is at 6.54.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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 Years13
Div Non Decr Years33
5.3 Sustainability
EGP pays out 117.00% of its income as dividend. 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.
DP117%
EPS Next 2Y5.58%
EPS Next 3Y2.45%
169.5
+5.72 (+3.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.85%
Inst Owner Change-1.74%
Ins Owners0.88%
Ins Owner Change1.43%
Market Cap9.04B
Analysts78.33
Price Target191.52 (12.99%)
Short Float %2.75%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP117%
Div Incr Years13
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.91%
Min EPS beat(2)1.84%
Max EPS beat(2)1.98%
EPS beat(4)3
Avg EPS beat(4)0.71%
Min EPS beat(4)-1.17%
Max EPS beat(4)1.98%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)6.49%
EPS beat(16)14
Avg EPS beat(16)15.47%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)1.57%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)9
Avg Revenue beat(12)0.36%
Revenue beat(16)12
Avg Revenue beat(16)0.61%
PT rev (1m)0.65%
PT rev (3m)0.41%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.47%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.61 | ||
| Fwd PE | 32.7 | ||
| P/S | 13.32 | ||
| P/FCF | N/A | ||
| P/OCF | 19.91 | ||
| P/B | 2.65 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 21.48 |
EPS(TTM)4.63
EY2.73%
EPS(NY)5.18
Fwd EY3.06%
FCF(TTM)-3.33
FCFYN/A
OCF(TTM)8.51
OCFY5.02%
SpS12.73
BVpS63.88
TBVpS61.13
PEG (NY)15.41
PEG (5Y)4.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 6.94% | ||
| ROCE | 5.59% | ||
| ROIC | 4.42% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 4.6% | ||
| OM | 39.61% | ||
| PM (TTM) | 34.85% | ||
| GM | 73.11% | ||
| 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 | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 309.38% | ||
| Cap/Sales | 93.05% | ||
| Interest Coverage | 8.19 | ||
| Cash Conversion | 95.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 3.07 |
F-Score7
WACC7.84%
ROIC/WACC0.56
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)-3.14%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%5.26%
EPS Next Y2.38%
EPS Next 2Y5.58%
EPS Next 3Y2.45%
EPS Next 5Y7.27%
Revenue 1Y (TTM)11.44%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.44%
Revenue Next Year11.39%
Revenue Next 2Y10.38%
Revenue Next 3Y10.28%
Revenue Next 5Y11.63%
EBIT growth 1Y10.08%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year73.9%
EBIT Next 3Y27.69%
EBIT Next 5Y24.59%
FCF growth 1Y-21.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.23%
OCF growth 3Y17.55%
OCF growth 5Y16.29%