EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - NYSE:EGP - US2772761019 - REIT
171.15 USD
+0.97 (+0.57%)
171.15 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. 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.
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 has a Return On Assets of 4.56%. This is amongst the best in the industry. EGP outperforms 90.70% of its industry peers.
EGP has a Return On Equity of 6.94%. This is in the better half of the industry: EGP outperforms 79.84% of its industry peers.
EGP's Return On Invested Capital of 4.42% is amongst the best of the industry. EGP outperforms 84.50% 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 3.04%.
The 3 year average ROIC (4.12%) for EGP is below the current ROIC(4.42%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of EGP has remained more or less at the same level.
EGP's Operating Margin of 39.61% is amongst the best of the industry. EGP outperforms 86.05% of its industry peers.
In the last couple of years the Operating Margin of EGP has grown nicely.
Looking at the Gross Margin, with a value of 73.11%, 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 | 39.61% | ||
| 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.
The number of shares outstanding for EGP has been increased compared to 1 year ago.
The number of shares outstanding for EGP has been increased compared to 5 years ago.
EGP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.19 indicates that EGP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.19, EGP belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
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 | 3.19 |
ROIC/WACC0.57
WACC7.72%
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.
With a Current ratio value of 0.37, EGP is not doing good in the industry: 84.50% of the companies in the same industry are doing better.
EGP has a Quick 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 Quick ratio, with a value of 0.37, EGP is doing worse than 83.72% of the companies in the same industry.
| 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 -3.14%.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
Looking at the last year, EGP shows a quite strong growth in Revenue. The Revenue has grown by 11.44% in the last year.
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)-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
EGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.27% yearly.
Based on estimates for the next years, EGP will show a quite strong growth in Revenue. The Revenue will grow by 11.63% on average per year.
EPS Next Y2.95%
EPS Next 2Y5.71%
EPS Next 3Y5.94%
EPS Next 5Y7.27%
Revenue Next Year11.94%
Revenue Next 2Y10.58%
Revenue Next 3Y10.23%
Revenue Next 5Y11.63%
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.
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 36.97 indicates a quite expensive valuation of EGP.
Compared to the rest of the industry, the Price/Earnings ratio of EGP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.86, EGP is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.94, EGP can be considered very expensive at the moment.
EGP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EGP is cheaper than 73.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. EGP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.97 | ||
| Fwd PE | 32.94 |
4.2 Price Multiples
88.37% of the companies in the same industry are cheaper than EGP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EGP may justify a higher PE ratio.
PEG (NY)12.51
PEG (5Y)4.93
EPS Next 2Y5.71%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.41, EGP is paying slightly less dividend.
EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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 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
117.00% of the earnings are spent on dividend by EGP. 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 2Y5.71%
EPS Next 3Y5.94%
171.15
+0.97 (+0.57%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.31%
Inst Owner Change-1.75%
Ins Owners0.88%
Ins Owner Change0.43%
Market Cap9.13B
Analysts78.33
Price Target192 (12.18%)
Short Float %2.78%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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)0.25%
PT rev (3m)0.9%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.97 | ||
| Fwd PE | 32.94 | ||
| P/S | 13.45 | ||
| P/FCF | N/A | ||
| P/OCF | 20.11 | ||
| P/B | 2.68 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 22.2 |
EPS(TTM)4.63
EY2.71%
EPS(NY)5.2
Fwd EY3.04%
FCF(TTM)-3.33
FCFYN/A
OCF(TTM)8.51
OCFY4.97%
SpS12.73
BVpS63.88
TBVpS61.13
PEG (NY)12.51
PEG (5Y)4.93
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 | 3.19 |
F-Score7
WACC7.72%
ROIC/WACC0.57
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 Y2.95%
EPS Next 2Y5.71%
EPS Next 3Y5.94%
EPS Next 5Y7.27%
Revenue 1Y (TTM)11.44%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.44%
Revenue Next Year11.94%
Revenue Next 2Y10.58%
Revenue Next 3Y10.23%
Revenue Next 5Y11.63%
EBIT growth 1Y10.08%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year74.3%
EBIT Next 3Y28.26%
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%