EASTGROUP PROPERTIES INC (EGP)
US2772761019 - REIT
Overall EGP gets a fundamental rating of 5 out of 10. We evaluated EGP against 126 industry peers in the Diversified REITs industry. EGP scores excellent on profitability, 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
The Return On Assets of EGP (4.44%) is better than 87.80% of its industry peers.
The Return On Equity of EGP (7.69%) is better than 82.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.18%, EGP belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
EGP had an Average Return On Invested Capital over the past 3 years of 3.94%. This is in line with the industry average of 2.95%.
The last Return On Invested Capital (4.18%) for EGP is above the 3 year average (3.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 7.69% | ||
| ROIC | 4.18% |
ROA(3y)4.65%
ROA(5y)4.54%
ROE(3y)9.08%
ROE(5y)9.19%
ROIC(3y)3.94%
ROIC(5y)3.89%
1.3 Margins
EGP has a Profit Margin of 35.14%. This is amongst the best in the industry. EGP outperforms 86.99% of its industry peers.
EGP's Profit Margin has improved in the last couple of years.
The Operating Margin of EGP (39.98%) is better than 85.37% of its industry peers.
EGP's Operating Margin has improved in the last couple of years.
EGP's Gross Margin of 73.01% is fine compared to the rest of the industry. EGP outperforms 65.04% 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 | 39.98% | ||
| PM (TTM) | 35.14% | ||
| GM | 73.01% |
OM growth 3Y4.22%
OM growth 5Y2.04%
PM growth 3Y5.57%
PM growth 5Y3.59%
GM growth 3Y0.68%
GM growth 5Y0.49%
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 2.54. This is not the best score and indicates that EGP is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.54, EGP belongs to the best of the industry, outperforming 95.94% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that EGP is somewhat dependend on debt financing.
The Debt to Equity ratio of EGP (0.64) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.53
WACC7.91%
2.3 Liquidity
A Current Ratio of 0.68 indicates that EGP may have some problems paying its short term obligations.
EGP has a worse Current ratio (0.68) than 73.17% of its industry peers.
EGP has a Quick Ratio of 0.68. 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 Quick ratio value of 0.68, EGP is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.49% over the past year.
EGP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.24% yearly.
EGP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.16%.
The Revenue has been growing by 13.69% on average over the past years. This is quite good.
EPS 1Y (TTM)20.49%
EPS 3Y16.91%
EPS 5Y15.24%
EPS growth Q2Q51.69%
Revenue 1Y (TTM)17.16%
Revenue growth 3Y16.27%
Revenue growth 5Y13.69%
Revenue growth Q2Q14.87%
3.2 Future
Based on estimates for the next years, EGP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.78% 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 12.62% on average per year.
EPS Next Y0.92%
EPS Next 2Y6.38%
EPS Next 3Y8.04%
EPS Next 5Y8.78%
Revenue Next Year10.87%
Revenue Next 2Y10.49%
Revenue Next 3Y11.87%
Revenue Next 5Y12.62%
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 decreasing.
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
Based on the Price/Earnings ratio of 35.32, the valuation of EGP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as EGP.
EGP is valuated rather expensively when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.99, EGP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than the industry average as 72.36% of the companies are valued more expensively.
EGP is valuated expensively when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 34.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGP is valued more expensive than 88.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.08 |
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)38.23
PEG (5Y)2.32
EPS Next 2Y6.38%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.06%.
EGP's Dividend Yield is slightly below the industry average, which is at 6.12.
Compared to an average S&P500 Dividend Yield of 2.44, EGP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
On average, the dividend of EGP grows each year by 19.84%, 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)19.84%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
EGP pays out 112.54% 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.
DP112.54%
EPS Next 2Y6.38%
EPS Next 3Y8.04%
EASTGROUP PROPERTIES INC
NYSE:EGP (4/25/2024, 7:04:00 PM)
After market: 155.74 0 (0%)155.74
-2.25 (-1.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap7.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 34.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)38.23
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 7.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 39.98% | ||
| PM (TTM) | 35.14% | ||
| GM | 73.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.49%
EPS 3Y16.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.16%
Revenue growth 3Y16.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y