EMPIRE STATE REALTY TRUST-A (ESRT) Stock Fundamental Analysis
NYSE:ESRT - New York Stock Exchange, Inc. - US2921041065 - REIT - Currency: USD
ESRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. Both the profitability and the financial health of ESRT get a neutral evaluation. Nothing too spectacular is happening here. ESRT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ESRT was profitable.
ESRT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ESRT reported negative net income in multiple years.
Each year in the past 5 years ESRT had a positive operating cash flow.
1.2 Ratios
ESRT has a Return On Assets (1.24%) which is in line with its industry peers.
With a decent Return On Equity value of 4.80%, ESRT is doing good in the industry, outperforming 67.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.09%, ESRT is in line with its industry, outperforming 59.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESRT is in line with the industry average of 3.15%.
The last Return On Invested Capital (3.09%) for ESRT is above the 3 year average (2.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 4.8% | ||
| ROIC | 3.09% |
ROA(3y)1.03%
ROA(5y)0.49%
ROE(3y)4.33%
ROE(5y)2.08%
ROIC(3y)2.75%
ROIC(5y)2.24%
1.3 Margins
ESRT's Profit Margin of 6.65% is in line compared to the rest of the industry. ESRT outperforms 56.59% of its industry peers.
ESRT's Profit Margin has declined in the last couple of years.
ESRT's Operating Margin of 20.01% is in line compared to the rest of the industry. ESRT outperforms 45.74% of its industry peers.
In the last couple of years the Operating Margin of ESRT has remained more or less at the same level.
With a Gross Margin value of 54.97%, ESRT is not doing good in the industry: 73.64% of the companies in the same industry are doing better.
ESRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.01% | ||
| PM (TTM) | 6.65% | ||
| GM | 54.97% |
OM growth 3Y14.11%
OM growth 5Y-0.46%
PM growth 3YN/A
PM growth 5Y-1.77%
GM growth 3Y-0.96%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
ESRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ESRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ESRT has less shares outstanding
ESRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that ESRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ESRT (0.62) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.94 is on the high side and indicates that ESRT has dependencies on debt financing.
ESRT has a worse Debt to Equity ratio (1.94) than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.48
WACC6.37%
2.3 Liquidity
ESRT has a Current Ratio of 2.46. This indicates that ESRT is financially healthy and has no problem in meeting its short term obligations.
ESRT has a Current ratio of 2.46. This is amongst the best in the industry. ESRT outperforms 86.05% of its industry peers.
A Quick Ratio of 2.46 indicates that ESRT has no problem at all paying its short term obligations.
ESRT's Quick ratio of 2.46 is amongst the best of the industry. ESRT outperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
The earnings per share for ESRT have decreased strongly by -37.11% in the last year.
The Earnings Per Share has been decreasing by -8.83% on average over the past years.
ESRT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.42%.
ESRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)-37.11%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%0.43%
3.2 Future
The Earnings Per Share is expected to decrease by -33.55% on average over the next years. This is quite bad
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue Next Year2.48%
Revenue Next 2Y2.52%
Revenue Next 3Y2.12%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 12.54, which indicates a correct valuation of ESRT.
Compared to the rest of the industry, the Price/Earnings ratio of ESRT indicates a rather cheap valuation: ESRT is cheaper than 91.47% of the companies listed in the same industry.
ESRT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
ESRT is valuated quite expensively with a Price/Forward Earnings ratio of 93.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESRT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ESRT to the average of the S&P500 Index (36.44), we can say ESRT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 93.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESRT indicates a rather cheap valuation: ESRT is cheaper than 88.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
A cheap valuation may be justified as ESRT's earnings are expected to decrease with -51.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, ESRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.65, ESRT's dividend is way lower than its industry peers. On top of this 85.27% of the companies listed in the same industry pay a better dividend than ESRT!
Compared to the average S&P500 Dividend Yield of 2.35, ESRT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of ESRT decreases each year by -17.38%.
ESRT has been paying a dividend for at least 10 years, so it has a reliable track record.
ESRT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.38%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
53.99% of the earnings are spent on dividend by ESRT. This is a bit on the high side, but may be sustainable.
ESRT's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP53.99%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
NYSE:ESRT (7/21/2025, 12:11:26 PM)
7.65
+0.03 (+0.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.55%
Inst Owner Change-0.02%
Ins Owners0.08%
Ins Owner Change-0.14%
Market Cap1.29B
Analysts75
Price Target9.65 (26.14%)
Short Float %2.92%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.17
Dividend Growth(5Y)-17.38%
DP53.99%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1066.67%
Min EPS beat(2)370.59%
Max EPS beat(2)1762.75%
EPS beat(4)4
Avg EPS beat(4)583.82%
Min EPS beat(4)56.86%
Max EPS beat(4)1762.75%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-19.08%
Min Revenue beat(2)-21.46%
Max Revenue beat(2)-16.69%
Revenue beat(4)1
Avg Revenue beat(4)-9.75%
Min Revenue beat(4)-21.46%
Max Revenue beat(4)1.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.28%
PT rev (3m)-12.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 93.75 | ||
| P/S | 1.68 | ||
| P/FCF | N/A | ||
| P/OCF | 4.72 | ||
| P/B | 1.21 | ||
| P/tB | 4.98 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)0.61
EY7.97%
EPS(NY)0.08
Fwd EY1.07%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)1.62
OCFY21.19%
SpS4.55
BVpS6.3
TBVpS1.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 4.8% | ||
| ROCE | 3.91% | ||
| ROIC | 3.09% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 4.13% | ||
| OM | 20.01% | ||
| PM (TTM) | 6.65% | ||
| GM | 54.97% | ||
| FCFM | N/A |
ROA(3y)1.03%
ROA(5y)0.49%
ROE(3y)4.33%
ROE(5y)2.08%
ROIC(3y)2.75%
ROIC(5y)2.24%
ROICexc(3y)2.99%
ROICexc(5y)2.46%
ROICexgc(3y)3.81%
ROICexgc(5y)3.15%
ROCE(3y)3.48%
ROCE(5y)2.83%
ROICexcg growth 3Y18.9%
ROICexcg growth 5Y-2.68%
ROICexc growth 3Y19.87%
ROICexc growth 5Y-1.77%
OM growth 3Y14.11%
OM growth 5Y-0.46%
PM growth 3YN/A
PM growth 5Y-1.77%
GM growth 3Y-0.96%
GM growth 5Y-0.19%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.04 | ||
| Cap/Depr | 181.75% | ||
| Cap/Sales | 44.45% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 0.62 |
F-Score6
WACC6.37%
ROIC/WACC0.48
Cap/Depr(3y)133.09%
Cap/Depr(5y)115.91%
Cap/Sales(3y)34.64%
Cap/Sales(5y)32.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.11%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%-9.52%
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%0.43%
Revenue Next Year2.48%
Revenue Next 2Y2.52%
Revenue Next 3Y2.12%
Revenue Next 5Y2.17%
EBIT growth 1Y-4.3%
EBIT growth 3Y22.28%
EBIT growth 5Y0.51%
EBIT Next Year130.9%
EBIT Next 3Y34.88%
EBIT Next 5Y20.79%
FCF growth 1Y-258.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.8%
OCF growth 3Y7.08%
OCF growth 5Y2.32%