EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EGP - US2772761019 - REIT
181.16 USD
+1.21 (+0.67%)
181.16 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EGP. EGP was compared to 124 industry peers in the Diversified REITs industry. EGP has an excellent profitability rating, but 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.
- EGP had a positive operating cash flow in the past year.
- Each year in the past 5 years EGP has been profitable.
- In the past 5 years EGP always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of EGP (4.64%) is better than 89.60% of its industry peers.
- EGP's Return On Equity of 7.08% is fine compared to the rest of the industry. EGP outperforms 77.60% of its industry peers.
- EGP's Return On Invested Capital of 4.43% is amongst the best of the industry. EGP outperforms 85.60% 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 3.05%.
- The 3 year average ROIC (4.12%) for EGP is below the current ROIC(4.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 7.08% | ||
| ROIC | 4.43% |
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 35.58%, EGP belongs to the top of the industry, outperforming 89.60% 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.
- Looking at the Operating Margin, with a value of 39.91%, EGP belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of EGP has grown nicely.
- EGP has a better Gross Margin (73.30%) than 66.40% of its industry peers.
- In the last couple of years the Gross Margin of EGP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.91% | ||
| PM (TTM) | 35.58% | ||
| GM | 73.3% |
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
- EGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- EGP has an Altman-Z score of 3.27. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of EGP (3.27) is better than 98.40% of its industry peers.
- A Debt/Equity ratio of 0.39 indicates that EGP is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.39, EGP belongs to the top of the industry, outperforming 94.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.27 |
ROIC/WACC0.56
WACC7.89%
2.3 Liquidity
- EGP has a Current Ratio of 0.32. 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 0.32, EGP is not doing good in the industry: 85.60% of the companies in the same industry are doing better.
- A Quick Ratio of 0.32 indicates that EGP may have some problems paying its short term obligations.
- The Quick ratio of EGP (0.32) is worse than 84.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
- EGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.65%.
- 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 11.61%.
- 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)-1.65%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%11.5%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.82%
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 7.76% on average per year.
- EGP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.35% yearly.
EPS Next Y6.39%
EPS Next 2Y6.2%
EPS Next 3Y4.56%
EPS Next 5Y7.76%
Revenue Next Year11.84%
Revenue Next 2Y10.26%
Revenue Next 3Y10.16%
Revenue Next 5Y11.35%
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 38.06, the valuation of EGP can be described as expensive.
- EGP's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, EGP is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 34.54, the valuation of EGP can be described as expensive.
- Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than 72.80% of the companies in the same industry.
- EGP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.06 | ||
| Fwd PE | 34.54 |
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 85.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.75 |
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)5.95
PEG (5Y)5.08
EPS Next 2Y6.2%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
- EGP has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.82, EGP is paying slightly less dividend.
- EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
- The dividend of EGP is nicely growing with an annual growth rate of 11.97%!
- EGP has paid a dividend for at least 10 years, which is 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
- 116.28% 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.
DP116.28%
EPS Next 2Y6.2%
EPS Next 3Y4.56%
EASTGROUP PROPERTIES INC / EGP FAQ
What is the fundamental rating for EGP stock?
ChartMill assigns a fundamental rating of 5 / 10 to EGP.
What is the valuation status of EASTGROUP PROPERTIES INC (EGP) stock?
ChartMill assigns a valuation rating of 2 / 10 to EASTGROUP PROPERTIES INC (EGP). This can be considered as Overvalued.
What is the profitability of EGP stock?
EASTGROUP PROPERTIES INC (EGP) has a profitability rating of 8 / 10.
What is the valuation of EASTGROUP PROPERTIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EASTGROUP PROPERTIES INC (EGP) is 38.06 and the Price/Book (PB) ratio is 2.75.
Can you provide the financial health for EGP stock?
The financial health rating of EASTGROUP PROPERTIES INC (EGP) is 3 / 10.