EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
NYSE:EGP - New York Stock Exchange, Inc. - US2772761019 - REIT - Currency: USD
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 has a great profitability rating, there are quite some 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.
EGP had a positive operating cash flow in the past year.
In the past 5 years EGP has always been profitable.
EGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EGP's Return On Assets of 4.47% is amongst the best of the industry. EGP outperforms 90.70% of its industry peers.
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.
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 3.15%.
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
The Profit Margin of EGP (34.60%) is better than 89.92% of its industry peers.
EGP's Profit Margin has been stable in the last couple of years.
EGP has a better Operating Margin (39.82%) than 86.05% of its industry peers.
EGP's Operating Margin has improved in the last couple of years.
EGP's Gross Margin of 73.05% 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 | 39.82% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGP is destroying value.
The number of shares outstanding for EGP has been increased compared to 1 year ago.
EGP has more shares outstanding than it did 5 years ago.
EGP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.11 indicates that EGP is not in any danger for bankruptcy at the moment.
EGP has a better Altman-Z score (3.11) 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.
With an excellent Debt to Equity ratio value of 0.41, EGP belongs to the best of the industry, outperforming 92.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.11 |
ROIC/WACC0.55
WACC7.97%
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.
Looking at the Current ratio, with a value of 0.37, EGP is doing worse than 82.17% of the companies in the same industry.
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: 81.40% 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
EGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.87%.
EGP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
EGP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.98%.
Measured over the past years, EGP shows a quite strong growth in Revenue. The Revenue has been growing by 14.08% on average per year.
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
The Price/Earnings ratio is 36.76, which means the current valuation is very expensive for EGP.
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.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 31.48.
EGP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EGP is cheaper than 75.19% of the companies in the same industry.
EGP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 31.48 |
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 | 22.17 |
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)9.41
PEG (5Y)4.91
EPS Next 2Y7.13%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.36%.
Compared to an average industry Dividend Yield of 6.45, EGP is paying slightly less dividend.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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
EGP pays out 115.76% 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.
DP115.76%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
168
+1.26 (+0.76%)
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 Change-0.01%
Ins Owners0.89%
Ins Owner Change3.74%
Market Cap8.82B
Analysts79.2
Price Target190.29 (13.27%)
Short Float %2.47%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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)-5.91%
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)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 31.48 | ||
| P/S | 13.36 | ||
| P/FCF | N/A | ||
| P/OCF | 20.36 | ||
| P/B | 2.64 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 22.17 |
EPS(TTM)4.57
EY2.72%
EPS(NY)5.34
Fwd EY3.18%
FCF(TTM)-3.99
FCFYN/A
OCF(TTM)8.25
OCFY4.91%
SpS12.58
BVpS63.69
TBVpS60.82
PEG (NY)9.41
PEG (5Y)4.91
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 | 3.11 |
F-Score7
WACC7.97%
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 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%