EMPIRE STATE REALTY TRUST-A (ESRT) Stock Fundamental Analysis
NYSE:ESRT - New York Stock Exchange, Inc. - US2921041065 - REIT - Currency: USD
Taking everything into account, ESRT scores 4 out of 10 in our fundamental rating. ESRT was compared to 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
ESRT had positive earnings in the past year.
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.
In the past 5 years ESRT always reported a positive cash flow from operatings.
1.2 Ratios
ESRT has a Return On Assets (1.24%) which is comparable to the rest of the industry.
ESRT has a better Return On Equity (4.80%) than 67.44% of its industry peers.
With a Return On Invested Capital value of 3.09%, ESRT perfoms like the industry average, outperforming 59.69% of the companies in the same industry.
ESRT had an Average Return On Invested Capital over the past 3 years of 2.75%. This is in line with the industry average of 3.15%.
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
The Profit Margin of ESRT (6.65%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ESRT has declined.
Looking at the Operating Margin, with a value of 20.01%, ESRT is in line with its industry, outperforming 45.74% of the companies in the same industry.
In the last couple of years the Operating Margin of ESRT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 54.97%, ESRT is doing worse than 73.64% of the companies in the same industry.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESRT is destroying value.
Compared to 1 year ago, ESRT has more shares outstanding
Compared to 5 years ago, ESRT has less shares outstanding
The debt/assets ratio for ESRT is higher compared to a year ago.
2.2 Solvency
ESRT has an Altman-Z score of 0.62. 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 (0.62) which is in line with its industry peers.
A Debt/Equity ratio of 1.94 is on the high side and indicates that ESRT has dependencies on debt financing.
ESRT has a Debt to Equity ratio of 1.94. This is in the lower half of the industry: ESRT underperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.49
WACC6.25%
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's Current ratio of 2.46 is amongst the best of the industry. ESRT outperforms 86.05% of its industry peers.
ESRT has a Quick Ratio of 2.46. This indicates that ESRT is financially healthy and has no problem in meeting its short term obligations.
ESRT has a Quick ratio of 2.46. This is amongst the best in 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
ESRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.11%.
ESRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.83% yearly.
The Revenue has been growing slightly by 1.42% in the past year.
Measured over the past years, ESRT shows a small growth in Revenue. The Revenue has been growing by 0.98% on average per year.
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
ESRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue Next Year2.55%
Revenue Next 2Y2.64%
Revenue Next 3Y-5.22%
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
The Price/Earnings ratio is 12.69, which indicates a correct valuation of ESRT.
Based on the Price/Earnings ratio, ESRT is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.17. ESRT is valued rather cheaply when compared to this.
ESRT is valuated quite expensively with a Price/Forward Earnings ratio of 94.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESRT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ESRT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 94.85 |
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 89.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.22 |
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
ESRT has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.89, ESRT pays less dividend than the industry average, which is at 6.93. 86.05% 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 | 1.89% |
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.
The dividend of ESRT decreased in the last 3 years.
Dividend Growth(5Y)-17.38%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ESRT pays out 53.99% of its income as dividend. 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%
7.74
+0.18 (+2.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.47%
Inst Owner Change4.05%
Ins Owners0.1%
Ins Owner Change0.15%
Market Cap1.30B
Analysts75
Price Target9.89 (27.78%)
Short Float %1.87%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend0.17
Dividend Growth(5Y)-17.38%
DP53.99%
Div Incr Years0
Div Non Decr Years2
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)-10.19%
PT rev (3m)-17.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)50%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 94.85 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 4.78 | ||
| P/B | 1.23 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)0.61
EY7.88%
EPS(NY)0.08
Fwd EY1.05%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)1.62
OCFY20.94%
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
WACC6.25%
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)-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 Year2.55%
Revenue Next 2Y2.64%
Revenue Next 3Y-5.22%
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%