ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - NYSE:EPRT - US29670E1073 - REIT
30.86 USD
+0.08 (+0.26%)
30.86 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EPRT. EPRT was compared to 128 industry peers in the Diversified REITs industry. EPRT scores excellent on profitability, but there are some minor concerns on its financial health. EPRT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EPRT was profitable.
In the past year EPRT had a positive cash flow from operations.
In the past 5 years EPRT has always been profitable.
EPRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.62%, EPRT belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
EPRT has a better Return On Equity (6.24%) than 75.78% of its industry peers.
EPRT's Return On Invested Capital of 4.10% is fine compared to the rest of the industry. EPRT outperforms 76.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPRT is in line with the industry average of 3.04%.
The last Return On Invested Capital (4.10%) for EPRT is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.24% | ||
| ROIC | 4.1% |
ROA(3y)3.61%
ROA(5y)3.08%
ROE(3y)5.82%
ROE(5y)4.96%
ROIC(3y)3.68%
ROIC(5y)3.33%
1.3 Margins
The Profit Margin of EPRT (45.10%) is better than 95.31% of its industry peers.
In the last couple of years the Profit Margin of EPRT has grown nicely.
EPRT has a better Operating Margin (63.61%) than 98.44% of its industry peers.
In the last couple of years the Operating Margin of EPRT has grown nicely.
EPRT's Gross Margin of 98.70% is amongst the best of the industry. EPRT outperforms 98.44% of its industry peers.
EPRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.61% | ||
| PM (TTM) | 45.1% | ||
| GM | 98.7% |
OM growth 3Y3.86%
OM growth 5Y4.39%
PM growth 3Y2.82%
PM growth 5Y8.69%
GM growth 3Y0.46%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EPRT is destroying value.
EPRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EPRT has more shares outstanding
The debt/assets ratio for EPRT is higher compared to a year ago.
2.2 Solvency
EPRT has an Altman-Z score of 1.56. This is a bad value and indicates that EPRT is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.56, EPRT belongs to the best of the industry, outperforming 91.41% of the companies in the same industry.
EPRT has a Debt/Equity ratio of 0.69. This is a neutral value indicating EPRT is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.69, EPRT belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.55
WACC7.43%
2.3 Liquidity
A Current Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
EPRT has a Current ratio of 2.12. This is amongst the best in the industry. EPRT outperforms 82.81% of its industry peers.
EPRT has a Quick Ratio of 2.12. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT's Quick ratio of 2.12 is amongst the best of the industry. EPRT outperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
EPRT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.83%.
Measured over the past years, EPRT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.89% on average per year.
Looking at the last year, EPRT shows a very strong growth in Revenue. The Revenue has grown by 24.19%.
The Revenue has been growing by 26.39% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7.83%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%22.22%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
3.2 Future
EPRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.91% yearly.
The Revenue is expected to grow by 14.61% on average over the next years. This is quite good.
EPS Next Y11.31%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
EPS Next 5Y4.91%
Revenue Next Year23.14%
Revenue Next 2Y20.15%
Revenue Next 3Y18.2%
Revenue Next 5Y14.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.89, which indicates a rather expensive current valuation of EPRT.
Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than the industry average as 75.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EPRT to the average of the S&P500 Index (25.89), we can say EPRT is valued inline with the index average.
The Price/Forward Earnings ratio is 22.96, which indicates a rather expensive current valuation of EPRT.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
EPRT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
EPRT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EPRT is more expensive than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPRT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of EPRT may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)2.29
EPS Next 2Y8.59%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, EPRT has a reasonable but not impressive dividend return.
EPRT's Dividend Yield is slightly below the industry average, which is at 6.31.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
The dividend of EPRT has a limited annual growth rate of 2.50%.
EPRT has been paying a dividend for over 5 years, so it has already some track record.
EPRT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
EPRT pays out 94.03% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EPRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP94.03%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
30.86
+0.08 (+0.26%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners112.56%
Inst Owner Change0.32%
Ins Owners0.61%
Ins Owner Change1.17%
Market Cap6.11B
Revenue(TTM)531.06M
Net Income(TTM)239.51M
Analysts82.31
Price Target36.72 (18.99%)
Short Float %6.61%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP94.03%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.72%
Min EPS beat(2)1.75%
Max EPS beat(2)3.7%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.51%
Max EPS beat(4)3.7%
EPS beat(8)3
Avg EPS beat(8)-0.42%
EPS beat(12)7
Avg EPS beat(12)6.58%
EPS beat(16)10
Avg EPS beat(16)6%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)2.1%
Max Revenue beat(2)2.53%
Revenue beat(4)3
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.55%
Revenue beat(8)7
Avg Revenue beat(8)1.22%
Revenue beat(12)9
Avg Revenue beat(12)0.99%
Revenue beat(16)11
Avg Revenue beat(16)0.66%
PT rev (1m)0.58%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.96 | ||
| P/S | 11.51 | ||
| P/FCF | N/A | ||
| P/OCF | 16.84 | ||
| P/B | 1.59 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)1.24
EY4.02%
EPS(NY)1.34
Fwd EY4.36%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)1.83
OCFY5.94%
SpS2.68
BVpS19.36
TBVpS19.36
PEG (NY)2.2
PEG (5Y)2.29
Graham Number23.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.24% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.12% | ||
| OM | 63.61% | ||
| PM (TTM) | 45.1% | ||
| GM | 98.7% | ||
| FCFM | N/A |
ROA(3y)3.61%
ROA(5y)3.08%
ROE(3y)5.82%
ROE(5y)4.96%
ROIC(3y)3.68%
ROIC(5y)3.33%
ROICexc(3y)3.71%
ROICexc(5y)3.37%
ROICexgc(3y)3.74%
ROICexgc(5y)3.42%
ROCE(3y)4.65%
ROCE(5y)4.22%
ROICexgc growth 3Y6.53%
ROICexgc growth 5Y5.81%
ROICexc growth 3Y7.01%
ROICexc growth 5Y6.37%
OM growth 3Y3.86%
OM growth 5Y4.39%
PM growth 3Y2.82%
PM growth 5Y8.69%
GM growth 3Y0.46%
GM growth 5Y0.23%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 850.04% | ||
| Cap/Sales | 232.72% | ||
| Interest Coverage | 3.68 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 1.56 |
F-Score6
WACC7.43%
ROIC/WACC0.55
Cap/Depr(3y)916.8%
Cap/Depr(5y)983.03%
Cap/Sales(3y)264.22%
Cap/Sales(5y)300.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.83%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%22.22%
EPS Next Y11.31%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
EPS Next 5Y4.91%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
Revenue Next Year23.14%
Revenue Next 2Y20.15%
Revenue Next 3Y18.2%
Revenue Next 5Y14.61%
EBIT growth 1Y24.37%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year82.62%
EBIT Next 3Y35.08%
EBIT Next 5Y22.07%
FCF growth 1Y-20.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.27%
OCF growth 3Y22.6%
OCF growth 5Y28.34%
ESSENTIAL PROPERTIES REALTY / EPRT FAQ
What is the fundamental rating for EPRT stock?
ChartMill assigns a fundamental rating of 6 / 10 to EPRT.
Can you provide the valuation status for ESSENTIAL PROPERTIES REALTY?
ChartMill assigns a valuation rating of 3 / 10 to ESSENTIAL PROPERTIES REALTY (EPRT). This can be considered as Overvalued.
What is the profitability of EPRT stock?
ESSENTIAL PROPERTIES REALTY (EPRT) has a profitability rating of 8 / 10.
What is the financial health of ESSENTIAL PROPERTIES REALTY (EPRT) stock?
The financial health rating of ESSENTIAL PROPERTIES REALTY (EPRT) is 5 / 10.
What is the expected EPS growth for ESSENTIAL PROPERTIES REALTY (EPRT) stock?
The Earnings per Share (EPS) of ESSENTIAL PROPERTIES REALTY (EPRT) is expected to grow by 11.31% in the next year.