ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPRT - US29670E1073 - REIT
29.69 USD
0 (0%)
29.69 USD
0 (0%)
EPRT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. While EPRT has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, EPRT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year EPRT was profitable.
EPRT had a positive operating cash flow in the past year.
EPRT had positive earnings in each of the past 5 years.
Each year in the past 5 years EPRT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.62%, EPRT is in the better half of the industry, outperforming 79.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.24%, EPRT is in the better half of the industry, outperforming 73.23% of the companies in the same industry.
EPRT's Return On Invested Capital of 4.10% is fine compared to the rest of the industry. EPRT outperforms 79.53% of its industry peers.
EPRT had an Average Return On Invested Capital over the past 3 years of 3.68%. This is in line with the industry average of 3.06%.
The 3 year average ROIC (3.68%) for EPRT is below the current ROIC(4.10%), indicating increased profibility in the last year.
| 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 94.49% of its industry peers.
In the last couple of years the Profit Margin of EPRT has grown nicely.
The Operating Margin of EPRT (63.61%) is better than 98.43% of its industry peers.
EPRT's Operating Margin has improved in the last couple of years.
EPRT's Gross Margin of 98.70% is amongst the best of the industry. EPRT outperforms 98.43% of its industry peers.
In the last couple of years the Gross Margin of EPRT has remained more or less at the same level.
| 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.
Compared to 1 year ago, EPRT has more shares outstanding
The number of shares outstanding for EPRT has been increased compared to 5 years ago.
EPRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
EPRT has a better Altman-Z score (1.52) than 92.13% of its industry peers.
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 83.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.55
WACC7.41%
2.3 Liquidity
A Current Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
EPRT's Current ratio of 2.12 is amongst the best of the industry. EPRT outperforms 85.04% 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 85.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.83% over the past year.
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.
The Revenue has grown by 24.19% in the past year. This is a very strong growth!
EPRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.39% yearly.
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
The Earnings Per Share is expected to grow by 6.48% on average over the next years.
Based on estimates for the next years, EPRT will show a quite strong growth in Revenue. The Revenue will grow by 14.90% on average per year.
EPS Next Y11.84%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
EPS Next 5Y6.48%
Revenue Next Year24.13%
Revenue Next 2Y20.53%
Revenue Next 3Y18.8%
Revenue Next 5Y14.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.94, EPRT is valued on the expensive side.
Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than the industry average as 74.80% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.17. EPRT is around the same levels.
Based on the Price/Forward Earnings ratio of 22.02, the valuation of EPRT can be described as rather expensive.
EPRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EPRT is cheaper than 89.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. EPRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
73.23% of the companies in the same industry are cheaper than EPRT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.57 |
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)2.02
PEG (5Y)2.2
EPS Next 2Y8.76%
EPS Next 3Y7.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, EPRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.83, EPRT is paying slightly less dividend.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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.
As EPRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
EPRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP94.03%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
29.69
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.43%
Inst Owner Change0%
Ins Owners0.54%
Ins Owner Change0.58%
Market Cap5.88B
Revenue(TTM)531.06M
Net Income(TTM)239.51M
Analysts82.31
Price Target36.72 (23.68%)
Short Float %7.7%
Short Ratio8.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP94.03%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)0.14%
PT rev (3m)0.58%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 22.02 | ||
| P/S | 11.08 | ||
| P/FCF | N/A | ||
| P/OCF | 16.21 | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 17.57 |
EPS(TTM)1.24
EY4.18%
EPS(NY)1.35
Fwd EY4.54%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)1.83
OCFY6.17%
SpS2.68
BVpS19.36
TBVpS19.36
PEG (NY)2.02
PEG (5Y)2.2
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 | 1.52 |
F-Score6
WACC7.41%
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 Y11.84%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
EPS Next 5Y6.48%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
Revenue Next Year24.13%
Revenue Next 2Y20.53%
Revenue Next 3Y18.8%
Revenue Next 5Y14.9%
EBIT growth 1Y24.37%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year83.71%
EBIT Next 3Y35.99%
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.
What is the valuation status of ESSENTIAL PROPERTIES REALTY (EPRT) stock?
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 valuation of ESSENTIAL PROPERTIES REALTY based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSENTIAL PROPERTIES REALTY (EPRT) is 23.94 and the Price/Book (PB) ratio is 1.53.
How financially healthy is ESSENTIAL PROPERTIES REALTY?
The financial health rating of ESSENTIAL PROPERTIES REALTY (EPRT) is 5 / 10.