ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
NYSE:EPRT - New York Stock Exchange, Inc. - US29670E1073 - REIT - Currency: USD
EPRT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 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
EPRT had positive earnings in the past year.
EPRT had a positive operating cash flow in the past year.
EPRT had positive earnings in each of the past 5 years.
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 83.72% of its industry peers.
EPRT has a better Return On Equity (5.55%) than 73.64% of its industry peers.
EPRT has a Return On Invested Capital of 4.01%. This is in the better half of the industry: EPRT outperforms 75.97% 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 3.17%.
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
EPRT has a Profit Margin of 44.50%. This is amongst the best in the industry. EPRT outperforms 94.57% of its industry peers.
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.
Looking at the Gross Margin, with a value of 98.68%, EPRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
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 is higher compared to a year ago.
2.2 Solvency
EPRT has an Altman-Z score of 1.93. This is not the best score and indicates that EPRT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of EPRT (1.93) is better than 95.35% of its industry peers.
EPRT has a Debt/Equity ratio of 0.56. This is a neutral value indicating EPRT is somewhat dependend on debt financing.
EPRT's Debt to Equity ratio of 0.56 is amongst the best of the industry. EPRT outperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.53
WACC7.61%
2.3 Liquidity
EPRT has a Current Ratio of 2.38. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT has a Current ratio of 2.38. This is amongst the best in the industry. EPRT outperforms 83.72% of its industry peers.
A Quick Ratio of 2.38 indicates that EPRT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.38, EPRT belongs to the best of the industry, outperforming 83.72% 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 6.50%.
The Earnings Per Share has been growing by 10.89% on average over the past years. This is quite good.
EPRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.31%.
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%60.71%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.97%
3.2 Future
Based on estimates for the next years, EPRT will show a small growth in Earnings Per Share. The EPS will grow by 5.05% on average per year.
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 Y11.39%
EPS Next 2Y9.02%
EPS Next 3Y7.28%
EPS Next 5Y5.05%
Revenue Next Year19.22%
Revenue Next 2Y18.19%
Revenue Next 3Y17.11%
Revenue Next 5Y15.95%
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 24.40 indicates a rather expensive valuation of EPRT.
64.34% of the companies in the same industry are more expensive than EPRT, based on the Price/Earnings ratio.
EPRT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.10.
A Price/Forward Earnings ratio of 23.60 indicates a rather expensive valuation of EPRT.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaply inside the industry as 84.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, EPRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 23.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPRT is valued more expensive than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.44 |
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)2.14
PEG (5Y)2.24
EPS Next 2Y9.02%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.70%.
EPRT's Dividend Yield is slightly below the industry average, which is at 6.64.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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
98.36% of the earnings are spent on dividend by EPRT. This is not a sustainable payout ratio.
EPRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.36%
EPS Next 2Y9.02%
EPS Next 3Y7.28%
31.97
-0.02 (-0.06%)
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 Change-0.21%
Ins Owners0.7%
Ins Owner Change0.75%
Market Cap6.31B
Analysts82.4
Price Target36.61 (14.51%)
Short Float %6.9%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP98.36%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.77%
Min EPS beat(2)-4.51%
Max EPS beat(2)48.05%
EPS beat(4)1
Avg EPS beat(4)6.88%
Min EPS beat(4)-13.21%
Max EPS beat(4)48.05%
EPS beat(8)4
Avg EPS beat(8)10.88%
EPS beat(12)8
Avg EPS beat(12)11.41%
EPS beat(16)11
Avg EPS beat(16)11.41%
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)2.44%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.44%
Revenue beat(8)6
Avg Revenue beat(8)0.63%
Revenue beat(12)7
Avg Revenue beat(12)-0.13%
Revenue beat(16)11
Avg Revenue beat(16)1.27%
PT rev (1m)-0.33%
PT rev (3m)0.1%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 23.6 | ||
| P/S | 13.28 | ||
| P/FCF | N/A | ||
| P/OCF | 19.8 | ||
| P/B | 1.66 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 19.44 |
EPS(TTM)1.31
EY4.1%
EPS(NY)1.35
Fwd EY4.24%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)1.61
OCFY5.05%
SpS2.41
BVpS19.32
TBVpS19.32
PEG (NY)2.14
PEG (5Y)2.24
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 | 1.93 |
F-Score4
WACC7.61%
ROIC/WACC0.53
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%60.71%
EPS Next Y11.39%
EPS Next 2Y9.02%
EPS Next 3Y7.28%
EPS Next 5Y5.05%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.97%
Revenue Next Year19.22%
Revenue Next 2Y18.19%
Revenue Next 3Y17.11%
Revenue Next 5Y15.95%
EBIT growth 1Y28.22%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year77.37%
EBIT Next 3Y33.51%
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%