ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
NYSE:EPRT - New York Stock Exchange, Inc. - US29670E1073 - REIT - Currency: USD
Taking everything into account, EPRT scores 6 out of 10 in our fundamental rating. EPRT was compared to 129 industry peers in the Diversified REITs industry. EPRT scores excellent on profitability, but 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.
In the past year EPRT had a positive cash flow from operations.
In the past 5 years EPRT has always been profitable.
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 3.49%, EPRT belongs to the top of the industry, outperforming 84.50% of the companies in the same industry.
The Return On Equity of EPRT (5.55%) is better than 72.09% of its industry peers.
EPRT's Return On Invested Capital of 4.01% is fine compared to the rest of the industry. EPRT outperforms 75.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EPRT is in line with the industry average of 3.15%.
The 3 year average ROIC (3.68%) for EPRT is below the current ROIC(4.01%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 44.50%, EPRT belongs to the top of the industry, outperforming 93.80% of the companies in the same industry.
EPRT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 63.72%, EPRT belongs to the top of the industry, outperforming 98.45% of the companies in the same industry.
In the last couple of years the Operating Margin of EPRT has grown nicely.
The Gross Margin of EPRT (98.68%) is better than 99.22% 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 | 63.72% | ||
| 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 1.96 indicates that EPRT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.96, EPRT belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that EPRT is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.56, EPRT belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.52
WACC7.69%
2.3 Liquidity
A Current Ratio of 2.38 indicates that EPRT has no problem at all paying its short term obligations.
EPRT has a better Current ratio (2.38) than 82.95% of its industry peers.
A Quick Ratio of 2.38 indicates that EPRT has no problem at all paying its short term obligations.
EPRT has a Quick ratio of 2.38. This is amongst the best in the industry. EPRT outperforms 82.95% of its industry peers.
| 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%.
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 25.31% in the past year. This is a very strong growth!
Measured over the past years, EPRT shows a very strong growth in Revenue. The Revenue has been growing by 26.39% on average per year.
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 5.05% on average over the next years.
EPRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.95% yearly.
EPS Next Y10.8%
EPS Next 2Y8.4%
EPS Next 3Y8.22%
EPS Next 5Y5.05%
Revenue Next Year20.67%
Revenue Next 2Y18.81%
Revenue Next 3Y15.96%
Revenue Next 5Y15.95%
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.
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
Based on the Price/Earnings ratio of 28.26, the valuation of EPRT can be described as expensive.
Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than 66.67% 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 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.26, the valuation of EPRT can be described as rather expensive.
83.72% of the companies in the same industry are more expensive than EPRT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, EPRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.26 | ||
| Fwd PE | 24.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPRT indicates a rather expensive valuation: EPRT more expensive than 84.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.67 |
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.
EPRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)2.6
EPS Next 2Y8.4%
EPS Next 3Y8.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, EPRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.68, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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 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 2Y8.4%
EPS Next 3Y8.22%
32.5
+0.05 (+0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.39%
Inst Owner Change7.71%
Ins Owners0.7%
Ins Owner Change2.12%
Market Cap6.42B
Analysts82.4
Price Target36.52 (12.37%)
Short Float %6.74%
Short Ratio6.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)-0.26%
PT rev (3m)0.81%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.26 | ||
| Fwd PE | 24.26 | ||
| P/S | 13.5 | ||
| P/FCF | N/A | ||
| P/OCF | 20.13 | ||
| P/B | 1.68 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 19.67 |
EPS(TTM)1.15
EY3.54%
EPS(NY)1.34
Fwd EY4.12%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)1.61
OCFY4.97%
SpS2.41
BVpS19.32
TBVpS19.32
PEG (NY)2.62
PEG (5Y)2.6
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 | 1.96 |
F-Score4
WACC7.69%
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 Y10.8%
EPS Next 2Y8.4%
EPS Next 3Y8.22%
EPS Next 5Y5.05%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.98%
Revenue Next Year20.67%
Revenue Next 2Y18.81%
Revenue Next 3Y15.96%
Revenue Next 5Y15.95%
EBIT growth 1Y28.22%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year80.1%
EBIT Next 3Y34.46%
EBIT Next 5YN/A
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%