EMPIRE STATE REALTY TRUST-A (ESRT) Stock Fundamental Analysis
NYSE:ESRT - New York Stock Exchange, Inc. - US2921041065 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to ESRT. ESRT was compared to 130 industry peers in the Diversified REITs industry. ESRT has only an average score on both its financial health and profitability. ESRT is valued expensive and it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: ESRT reported negative net income in multiple years.
In the past 5 years ESRT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ESRT (1.24%) is comparable to the rest of the industry.
The Return On Equity of ESRT (4.80%) is better than 66.15% of its industry peers.
The Return On Invested Capital of ESRT (3.09%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESRT is in line with the industry average of 3.14%.
The 3 year average ROIC (2.75%) for ESRT is below the current ROIC(3.09%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 6.65%. This is comparable to the rest of the industry: ESRT outperforms 55.38% of its industry peers.
In the last couple of years the Profit Margin of ESRT has declined.
ESRT has a Operating Margin (20.01%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ESRT has remained more or less at the same level.
The Gross Margin of ESRT (54.97%) is worse than 73.85% of its industry peers.
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.
The number of shares outstanding for ESRT has been increased compared to 1 year ago.
ESRT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESRT has a worse debt to assets ratio.
2.2 Solvency
ESRT has an Altman-Z score of 0.61. This is a bad value and indicates that ESRT is not financially healthy and even has some risk of bankruptcy.
ESRT has a Altman-Z score (0.61) which is in line with its industry peers.
ESRT has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.94, ESRT is doing worse than 68.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.61 |
ROIC/WACC0.49
WACC6.26%
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 85.38% of its industry peers.
A Quick Ratio of 2.46 indicates that ESRT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.46, ESRT belongs to the top of the industry, outperforming 85.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
ESRT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.88%.
ESRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.83% yearly.
Looking at the last year, ESRT shows a small growth in Revenue. The Revenue has grown by 1.78% in the last year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)-9.88%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%120%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%-18.99%
3.2 Future
Based on estimates for the next years, ESRT will show a very negative growth in Earnings Per Share. The EPS will decrease by -33.55% on average per year.
Based on estimates for the next years, ESRT will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue Next Year2.26%
Revenue Next 2Y2.53%
Revenue Next 3Y2.12%
Revenue Next 5Y2.17%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.84 indicates a reasonable valuation of ESRT.
96.15% of the companies in the same industry are more expensive than ESRT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, ESRT is valued rather cheaply.
A Price/Forward Earnings ratio of 87.99 indicates a quite expensive valuation of ESRT.
ESRT's Price/Forward Earnings is on the same level as the industry average.
ESRT is valuated expensively when we compare the Price/Forward Earnings ratio to 34.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 87.99 |
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 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
ESRT's earnings are expected to decrease with -51.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
5. Dividend
5.1 Amount
ESRT has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.39, ESRT's dividend is way lower than its industry peers. On top of this 86.15% of the companies listed in the same industry pay a better dividend than ESRT!
Compared to the average S&P500 Dividend Yield of 2.40, ESRT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of ESRT decreases each year by -17.38%.
ESRT has paid a dividend for at least 10 years, which is 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%
7.18
-0.2 (-2.71%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change3.5%
Ins Owners0.08%
Ins Owner Change-0.14%
Market Cap1.21B
Analysts75
Price Target9.24 (28.69%)
Short Float %2.54%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)-4.23%
PT rev (3m)-6.6%
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)-0.21%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 87.99 | ||
| P/S | 1.58 | ||
| P/FCF | N/A | ||
| P/OCF | 4.43 | ||
| P/B | 1.14 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)0.73
EY10.17%
EPS(NY)0.08
Fwd EY1.14%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)1.62
OCFY22.58%
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 | 0.61 |
F-Score6
WACC6.26%
ROIC/WACC0.49
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)-9.88%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%120%
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%-18.99%
Revenue Next Year2.26%
Revenue Next 2Y2.53%
Revenue Next 3Y2.12%
Revenue Next 5Y2.17%
EBIT growth 1Y-4.3%
EBIT growth 3Y22.28%
EBIT growth 5Y0.51%
EBIT Next Year131.1%
EBIT Next 3Y34.69%
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%