ESSENTIAL PROPERTIES REALTY (EPRT)
US29670E1073 - REIT
Overall EPRT gets a fundamental rating of 6 out of 10. We evaluated EPRT against 126 industry peers in the Diversified REITs industry. EPRT has an excellent profitability rating, but there are some minor concerns on its financial health. EPRT shows excellent growth, but is valued quite expensive already. This makes EPRT very considerable for growth investing!
1. Profitability
1.1 Basic Checks
EPRT had positive earnings in the past year.
EPRT had a positive operating cash flow in the past year.
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 3.88%, EPRT belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
EPRT's Return On Equity of 6.00% is fine compared to the rest of the industry. EPRT outperforms 76.42% of its industry peers.
EPRT has a better Return On Invested Capital (3.78%) than 78.86% of its industry peers.
EPRT had an Average Return On Invested Capital over the past 3 years of 3.42%. This is in line with the industry average of 2.95%.
The 3 year average ROIC (3.42%) for EPRT is below the current ROIC(3.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 6% | ||
| ROIC | 3.78% |
ROA(3y)3.41%
ROA(5y)2.8%
ROE(3y)5.48%
ROE(5y)4.52%
ROIC(3y)3.42%
ROIC(5y)3.12%
1.3 Margins
EPRT's Profit Margin of 51.23% is amongst the best of the industry. EPRT outperforms 97.56% of its industry peers.
In the last couple of years the Profit Margin of EPRT has grown nicely.
EPRT has a Operating Margin of 62.27%. This is amongst the best in the industry. EPRT outperforms 98.37% of its industry peers.
EPRT's Operating Margin has improved in the last couple of years.
EPRT's Gross Margin of 98.73% is amongst the best of the industry. EPRT outperforms 100.00% 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 | 62.27% | ||
| PM (TTM) | 51.23% | ||
| GM | 98.73% |
OM growth 3Y10.35%
OM growth 5Y3.85%
PM growth 3Y27.47%
PM growth 5Y27.18%
GM growth 3Y0.37%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
EPRT 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 EPRT has been increased compared to 1 year ago.
EPRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EPRT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
EPRT has a better Altman-Z score (1.74) than 91.87% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that EPRT is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.52, EPRT belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.5
WACC7.56%
2.3 Liquidity
EPRT has a Current Ratio of 2.58. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.58, EPRT belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
EPRT has a Quick Ratio of 2.58. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.58, EPRT belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.04% over the past year.
Measured over the past years, EPRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.84% on average per year.
EPRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.44%.
EPRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.18% yearly.
EPS 1Y (TTM)28.04%
EPS 3Y41.25%
EPS 5Y37.84%
EPS growth Q2Q44.83%
Revenue 1Y (TTM)26.44%
Revenue growth 3Y29.91%
Revenue growth 5Y30.18%
Revenue growth Q2Q23.67%
3.2 Future
Based on estimates for the next years, EPRT will show a decrease in Earnings Per Share. The EPS will decrease by -1.63% on average per year.
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
EPS Next Y-6.84%
EPS Next 2Y-1.17%
EPS Next 3Y0.39%
EPS Next 5Y-1.63%
Revenue Next Year22.8%
Revenue Next 2Y19.18%
Revenue Next 3Y17.73%
Revenue Next 5Y11.89%
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.
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
The Price/Earnings ratio is 19.58, which indicates a rather expensive current valuation of EPRT.
Compared to the rest of the industry, the Price/Earnings ratio of EPRT indicates a rather cheap valuation: EPRT is cheaper than 82.11% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EPRT to the average of the S&P500 Index (28.06), we can say EPRT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 22.14, the valuation of EPRT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaper than 88.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. EPRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 22.14 |
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 72.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.64 |
4.3 Compensation for Growth
The excellent profitability rating of EPRT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-1.17%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, EPRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.02, EPRT has a dividend in line with its industry peers.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
On average, the dividend of EPRT grows each year by 6.90%, which is quite nice.
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)6.9%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
EPRT pays out 90.56% of its income as dividend. This is not a sustainable payout ratio.
EPRT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP90.56%
EPS Next 2Y-1.17%
EPS Next 3Y0.39%
ESSENTIAL PROPERTIES REALTY
NYSE:EPRT (5/2/2024, 7:04:00 PM)
After market: 26.85 +0.03 (+0.11%)26.82
+0.47 (+1.78%)
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
Ins Owner Change
Market Cap4.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 22.14 | ||
| 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)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 62.27% | ||
| PM (TTM) | 51.23% | ||
| GM | 98.73% | ||
| 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 Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.58 | ||
| 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)28.04%
EPS 3Y41.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.44%
Revenue growth 3Y29.91%
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