EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - NYSE:EGP - US2772761019 - REIT
166.95 USD
-0.72 (-0.43%)
166.95 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. 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.
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 4.56%, EGP belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.94%, EGP is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
The Return On Invested Capital of EGP (4.42%) is better than 84.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EGP is in line with the industry average of 3.04%.
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
EGP's Profit Margin of 34.85% is amongst the best of the industry. EGP outperforms 87.60% of its industry peers.
EGP's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 39.61%, EGP belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
EGP's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 73.11%, EGP is doing good in 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 | 39.61% | ||
| 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.
Compared to 5 years ago, EGP has more shares outstanding
EGP has a better debt/assets ratio than last year.
2.2 Solvency
EGP has an Altman-Z score of 3.14. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
EGP's Altman-Z score of 3.14 is amongst the best of the industry. EGP outperforms 96.90% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that EGP is not too dependend on debt financing.
EGP has a better Debt to Equity ratio (0.40) than 93.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.14 |
ROIC/WACC0.58
WACC7.62%
2.3 Liquidity
A Current Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
EGP has a Current ratio of 0.37. This is amonst the worse of the industry: EGP underperforms 84.50% of its industry peers.
A Quick Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
With a Quick ratio value of 0.37, EGP is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
| 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.
EGP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
Looking at the last year, EGP shows a quite strong growth in Revenue. The Revenue has grown by 11.44% in the last year.
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 Y2.17%
EPS Next 2Y4.94%
EPS Next 3Y4.76%
EPS Next 5Y7.27%
Revenue Next Year11.58%
Revenue Next 2Y10.48%
Revenue Next 3Y9.86%
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 36.06, the valuation of EGP can be described as expensive.
EGP's Price/Earnings is on the same level as the industry average.
EGP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 32.60 indicates a quite expensive valuation of EGP.
74.42% of the companies in the same industry are more expensive than EGP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. EGP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 32.6 |
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 | 21.92 |
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.
EGP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)16.59
PEG (5Y)4.81
EPS Next 2Y4.94%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.63, EGP is paying slightly less dividend.
EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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.
EGP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP117%
EPS Next 2Y4.94%
EPS Next 3Y4.76%
166.95
-0.72 (-0.43%)
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-1.75%
Ins Owners0.88%
Ins Owner Change0.43%
Market Cap8.90B
Analysts78.33
Price Target191.52 (14.72%)
Short Float %3.05%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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)0.51%
PT rev (3m)0.65%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 32.6 | ||
| P/S | 13.12 | ||
| P/FCF | N/A | ||
| P/OCF | 19.62 | ||
| P/B | 2.61 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 21.92 |
EPS(TTM)4.63
EY2.77%
EPS(NY)5.12
Fwd EY3.07%
FCF(TTM)-3.33
FCFYN/A
OCF(TTM)8.51
OCFY5.1%
SpS12.73
BVpS63.88
TBVpS61.13
PEG (NY)16.59
PEG (5Y)4.81
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 | 3.14 |
F-Score7
WACC7.62%
ROIC/WACC0.58
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 Y2.17%
EPS Next 2Y4.94%
EPS Next 3Y4.76%
EPS Next 5Y7.27%
Revenue 1Y (TTM)11.44%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.44%
Revenue Next Year11.58%
Revenue Next 2Y10.48%
Revenue Next 3Y9.86%
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%