EMPIRE STATE REALTY TRUST-A (ESRT)
US2921041065 - REIT
We assign a fundamental rating of 4 out of 10 to ESRT. ESRT was compared to 126 industry peers in the Diversified REITs industry. ESRT has only an average score on both its financial health and profitability. ESRT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ESRT was profitable.
In the past year ESRT had a positive cash flow from operations.
In multiple years ESRT reported negative net income over the last 5 years.
ESRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESRT (1.16%) is comparable to the rest of the industry.
ESRT has a better Return On Equity (4.84%) than 68.29% of its industry peers.
ESRT has a Return On Invested Capital (2.86%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ESRT is in line with the industry average of 2.95%.
The last Return On Invested Capital (2.86%) for ESRT is above the 3 year average (2.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 4.84% | ||
| ROIC | 2.86% |
ROA(3y)0.6%
ROA(5y)0.53%
ROE(3y)2.5%
ROE(5y)1.97%
ROIC(3y)2.34%
ROIC(5y)2.31%
1.3 Margins
ESRT has a Profit Margin (6.64%) which is comparable to the rest of the industry.
ESRT's Profit Margin has declined in the last couple of years.
ESRT has a Operating Margin (19.85%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ESRT has declined.
ESRT's Gross Margin of 55.42% is on the low side compared to the rest of the industry. ESRT is outperformed by 75.61% of its industry peers.
In the last couple of years the Gross Margin of ESRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.85% | ||
| PM (TTM) | 6.64% | ||
| GM | 55.42% |
OM growth 3Y23.03%
OM growth 5Y-5.34%
PM growth 3YN/A
PM growth 5Y-5.86%
GM growth 3Y1.03%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESRT is destroying value.
The number of shares outstanding for ESRT has been increased compared to 1 year ago.
Compared to 5 years ago, ESRT has less shares outstanding
The debt/assets ratio for ESRT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that ESRT is in the distress zone and has some risk of bankruptcy.
ESRT's Altman-Z score of 0.71 is fine compared to the rest of the industry. ESRT outperforms 61.79% of its industry peers.
ESRT has a debt to FCF ratio of 33.82. This is a negative value and a sign of low solvency as ESRT would need 33.82 years to pay back of all of its debts.
ESRT has a Debt to FCF ratio of 33.82. This is comparable to the rest of the industry: ESRT outperforms 50.41% of its industry peers.
ESRT has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ESRT (2.21) is worse than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 33.82 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.42
WACC6.86%
2.3 Liquidity
ESRT has a Current Ratio of 4.52. This indicates that ESRT is financially healthy and has no problem in meeting its short term obligations.
ESRT has a better Current ratio (4.52) than 93.50% of its industry peers.
A Quick Ratio of 4.52 indicates that ESRT has no problem at all paying its short term obligations.
ESRT has a Quick ratio of 4.52. This is amongst the best in the industry. ESRT outperforms 93.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 4.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 155.56% over the past year.
Measured over the past years, ESRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.44% on average per year.
The Revenue has been growing slightly by 1.72% in the past year.
Measured over the past years, ESRT shows a small growth in Revenue. The Revenue has been growing by 0.22% on average per year.
EPS 1Y (TTM)155.56%
EPS 3Y117.03%
EPS 5Y-3.44%
EPS growth Q2Q13.64%
Revenue 1Y (TTM)1.72%
Revenue growth 3Y6.68%
Revenue growth 5Y0.22%
Revenue growth Q2Q6.39%
3.2 Future
The Earnings Per Share is expected to decrease by -42.30% on average over the next years. This is quite bad
ESRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.79% yearly.
EPS Next Y-88.91%
EPS Next 2Y-70.22%
EPS Next 3Y-55.4%
EPS Next 5Y-42.3%
Revenue Next Year2.09%
Revenue Next 2Y1.66%
Revenue Next 3Y1.8%
Revenue Next 5Y1.79%
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 Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.01 indicates a reasonable valuation of ESRT.
ESRT's Price/Earnings ratio is rather cheap when compared to the industry. ESRT is cheaper than 95.94% of the companies in the same industry.
ESRT is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 90.29, the valuation of ESRT can be described as expensive.
ESRT's Price/Forward Earnings ratio is in line with the industry average.
ESRT is valuated expensively when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 90.29 |
4.2 Price Multiples
86.18% of the companies in the same industry are more expensive than ESRT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESRT indicates a somewhat cheap valuation: ESRT is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.76 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
ESRT's earnings are expected to decrease with -55.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-70.22%
EPS Next 3Y-55.4%
5. Dividend
5.1 Amount
ESRT has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.03, ESRT's dividend is way lower than its industry peers. On top of this 88.62% of the companies listed in the same industry pay a better dividend than ESRT!
ESRT's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of ESRT decreases each year by -17.22%.
ESRT has paid a dividend for at least 10 years, which is a reliable track record.
ESRT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.22%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ESRT pays out 54.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ESRT has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP54.74%
EPS Next 2Y-70.22%
EPS Next 3Y-55.4%
EMPIRE STATE REALTY TRUST-A
NYSE:ESRT (4/26/2024, 7:04:00 PM)
After market: 9.21 0 (0%)9.21
+0.09 (+0.99%)
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 Cap1.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 10.01 | ||
| Fwd PE | 90.29 | ||
| 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)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 4.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.85% | ||
| PM (TTM) | 6.64% | ||
| GM | 55.42% | ||
| 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 Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.52 | ||
| Quick Ratio | 4.52 | ||
| 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)155.56%
EPS 3Y117.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y-88.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.72%
Revenue growth 3Y6.68%
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