ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
NYSE:EPRT - New York Stock Exchange, Inc. - US29670E1073 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to EPRT. EPRT was compared to 130 industry peers in the Diversified REITs industry. While EPRT belongs to the best of the industry regarding profitability, 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
EPRT had positive earnings in the past year.
EPRT had a positive operating cash flow in the past year.
Each year in the past 5 years EPRT has been profitable.
In the past 5 years EPRT always reported a positive cash flow from operatings.
1.2 Ratios
EPRT has a Return On Assets of 3.49%. This is amongst the best in the industry. EPRT outperforms 84.62% of its industry peers.
EPRT has a Return On Equity of 5.55%. This is in the better half of the industry: EPRT outperforms 72.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.01%, EPRT is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPRT is in line with the industry average of 3.16%.
The last Return On Invested Capital (4.01%) for EPRT is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 5.55% | ||
| ROIC | 4.01% |
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 (44.50%) is better than 93.85% of its industry peers.
EPRT's Profit Margin has improved in the last couple of years.
The Operating Margin of EPRT (63.72%) is better than 98.46% of its industry peers.
In the last couple of years the Operating Margin of EPRT has grown nicely.
EPRT has a better Gross Margin (98.68%) than 99.23% of its industry peers.
EPRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.72% | ||
| PM (TTM) | 44.5% | ||
| GM | 98.68% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EPRT is destroying value.
EPRT has more shares outstanding than it did 1 year ago.
EPRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EPRT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.88 indicates that EPRT is not a great score, but indicates only limited risk for bankruptcy at the moment.
EPRT has a better Altman-Z score (1.88) than 95.38% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that EPRT is somewhat dependend on debt financing.
The Debt to Equity ratio of EPRT (0.56) is better than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.88 |
ROIC/WACC0.52
WACC7.65%
2.3 Liquidity
A Current Ratio of 2.38 indicates that EPRT has no problem at all paying its short term obligations.
EPRT's Current ratio of 2.38 is amongst the best of the industry. EPRT outperforms 83.08% of its industry peers.
EPRT has a Quick Ratio of 2.38. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.38, EPRT belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
EPRT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.50%.
EPRT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.89% yearly.
Looking at the last year, EPRT shows a very strong growth in Revenue. The Revenue has grown by 25.31%.
EPRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.39% yearly.
EPS 1Y (TTM)-6.5%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%3.57%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.98%
3.2 Future
The Earnings Per Share is expected to grow by 5.63% on average over the next years.
The Revenue is expected to grow by 16.62% on average over the next years. This is quite good.
EPS Next Y12.14%
EPS Next 2Y9.56%
EPS Next 3Y7.54%
EPS Next 5Y5.63%
Revenue Next Year21.69%
Revenue Next 2Y19.2%
Revenue Next 3Y16.55%
Revenue Next 5Y16.62%
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
A Price/Earnings ratio of 26.97 indicates a quite expensive valuation of EPRT.
Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than 71.54% of the companies in the same industry.
EPRT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
EPRT is valuated rather expensively with a Price/Forward Earnings ratio of 22.66.
EPRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EPRT is cheaper than 86.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. EPRT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.97 | ||
| Fwd PE | 22.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPRT is valued expensively inside the industry as 81.54% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EPRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)2.48
EPS Next 2Y9.56%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.85%, EPRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.44, EPRT is paying slightly less dividend.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 98.36% 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.
DP98.36%
EPS Next 2Y9.56%
EPS Next 3Y7.54%
NYSE:EPRT (7/16/2025, 2:56:09 PM)
31.01
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.68%
Inst Owner Change-0.02%
Ins Owners0.62%
Ins Owner Change1.33%
Market Cap6.12B
Analysts82.4
Price Target36.73 (18.45%)
Short Float %7.26%
Short Ratio8.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP98.36%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.9%
Min EPS beat(2)-4.51%
Max EPS beat(2)-3.29%
EPS beat(4)0
Avg EPS beat(4)-5.95%
Min EPS beat(4)-13.21%
Max EPS beat(4)-2.8%
EPS beat(8)3
Avg EPS beat(8)4.47%
EPS beat(12)7
Avg EPS beat(12)7.13%
EPS beat(16)10
Avg EPS beat(16)8.2%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)2.55%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.55%
Revenue beat(8)6
Avg Revenue beat(8)0.64%
Revenue beat(12)7
Avg Revenue beat(12)-0.12%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)0%
PT rev (3m)0.04%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)1.21%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.97 | ||
| Fwd PE | 22.66 | ||
| P/S | 12.88 | ||
| P/FCF | N/A | ||
| P/OCF | 19.21 | ||
| P/B | 1.61 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)1.15
EY3.71%
EPS(NY)1.37
Fwd EY4.41%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)1.61
OCFY5.21%
SpS2.41
BVpS19.32
TBVpS19.32
PEG (NY)2.22
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 5.55% | ||
| ROCE | 5.07% | ||
| ROIC | 4.01% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.05% | ||
| OM | 63.72% | ||
| PM (TTM) | 44.5% | ||
| GM | 98.68% | ||
| 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%
ROICexcg growth 3Y6.53%
ROICexcg 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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 899.47% | ||
| Cap/Sales | 243.34% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 73.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 1.88 |
F-Score4
WACC7.65%
ROIC/WACC0.52
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)-6.5%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%3.57%
EPS Next Y12.14%
EPS Next 2Y9.56%
EPS Next 3Y7.54%
EPS Next 5Y5.63%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.98%
Revenue Next Year21.69%
Revenue Next 2Y19.2%
Revenue Next 3Y16.55%
Revenue Next 5Y16.62%
EBIT growth 1Y28.22%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year80.1%
EBIT Next 3Y34.46%
EBIT Next 5Y27.79%
FCF growth 1Y-45.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.56%
OCF growth 3Y22.6%
OCF growth 5Y28.34%