ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
259.78 USD
-0.95 (-0.36%)
259.78 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ESS. ESS was compared to 20 industry peers in the Residential REITs industry. ESS scores excellent on profitability, but there are concerns on its financial health. ESS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ESS had positive earnings in the past year.
In the past year ESS had a positive cash flow from operations.
ESS had positive earnings in each of the past 5 years.
ESS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESS's Return On Assets of 6.44% is amongst the best of the industry. ESS outperforms 85.00% of its industry peers.
ESS has a Return On Equity of 15.03%. This is amongst the best in the industry. ESS outperforms 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.60%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
ESS had an Average Return On Invested Capital over the past 3 years of 3.38%. This is in line with the industry average of 2.59%.
The 3 year average ROIC (3.38%) for ESS is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 15.03% | ||
| ROIC | 3.6% |
ROA(3y)4.11%
ROA(5y)4.1%
ROE(3y)9.34%
ROE(5y)9.13%
ROIC(3y)3.38%
ROIC(5y)3.06%
1.3 Margins
ESS has a Profit Margin of 45.46%. This is amongst the best in the industry. ESS outperforms 95.00% of its industry peers.
ESS's Profit Margin has improved in the last couple of years.
ESS has a better Operating Margin (30.96%) than 95.00% of its industry peers.
ESS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 70.42%, ESS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ESS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.96% | ||
| PM (TTM) | 45.46% | ||
| GM | 70.42% |
OM growth 3Y3.42%
OM growth 5Y-2.45%
PM growth 3Y7.21%
PM growth 5Y6.79%
GM growth 3Y0.78%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
ESS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ESS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ESS has less shares outstanding
The debt/assets ratio for ESS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that ESS is in the distress zone and has some risk of bankruptcy.
ESS has a Altman-Z score of 1.49. This is in the better half of the industry: ESS outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that ESS has dependencies on debt financing.
ESS's Debt to Equity ratio of 1.18 is in line compared to the rest of the industry. ESS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.51
WACC7.08%
2.3 Liquidity
ESS has a Current Ratio of 0.59. This is a bad value and indicates that ESS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.59, ESS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
ESS has a Quick Ratio of 0.59. This is a bad value and indicates that ESS is not financially healthy enough and could expect problems in meeting its short term obligations.
ESS has a Quick ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
ESS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.85%, which is quite impressive.
Measured over the past 5 years, ESS shows a small growth in Earnings Per Share. The EPS has been growing by 5.66% on average per year.
The Revenue has been growing slightly by 6.92% in the past year.
Measured over the past years, ESS shows a small growth in Revenue. The Revenue has been growing by 3.98% on average per year.
EPS 1Y (TTM)21.85%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%39.13%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
3.2 Future
The Earnings Per Share is expected to decrease by -3.11% on average over the next years.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y9.39%
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
EPS Next 5Y-3.11%
Revenue Next Year6.58%
Revenue Next 2Y5.18%
Revenue Next 3Y4.67%
Revenue Next 5Y3.92%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.91, which indicates a rather expensive current valuation of ESS.
Based on the Price/Earnings ratio, ESS is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ESS is valued at the same level.
ESS is valuated quite expensively with a Price/Forward Earnings ratio of 43.00.
Based on the Price/Forward Earnings ratio, ESS is valued a bit cheaper than 65.00% of the companies in the same industry.
ESS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESS indicates a slightly more expensive valuation: ESS is more expensive than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ESS may justify a higher PE ratio.
A cheap valuation may be justified as ESS's earnings are expected to decrease with -9.79% in the coming years.
PEG (NY)2.65
PEG (5Y)4.4
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 3.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.09, ESS is paying slightly less dividend.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
The dividend of ESS has a limited annual growth rate of 4.65%.
ESS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ESS decreased recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
76.31% of the earnings are spent on dividend by ESS. This is not a sustainable payout ratio.
The Dividend Rate of ESS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP76.31%
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
259.78
-0.95 (-0.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.51%
Inst Owner Change2.3%
Ins Owners1.14%
Ins Owner Change0%
Market Cap16.73B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target291.49 (12.21%)
Short Float %3.64%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP76.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.54%
Min EPS beat(2)73.1%
Max EPS beat(2)129.99%
EPS beat(4)3
Avg EPS beat(4)79.27%
Min EPS beat(4)-9.12%
Max EPS beat(4)129.99%
EPS beat(8)6
Avg EPS beat(8)68.85%
EPS beat(12)9
Avg EPS beat(12)61.22%
EPS beat(16)11
Avg EPS beat(16)49.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.4%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.27%
PT rev (1m)-1.88%
PT rev (3m)-3.52%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)5.29%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 43 | ||
| P/S | 8.98 | ||
| P/FCF | N/A | ||
| P/OCF | 15.8 | ||
| P/B | 2.97 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 19.83 |
EPS(TTM)10.43
EY4.01%
EPS(NY)6.04
Fwd EY2.33%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.33%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)2.65
PEG (5Y)4.4
Graham Number143.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 15.03% | ||
| ROCE | 4.56% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 3.62% | ||
| OM | 30.96% | ||
| PM (TTM) | 45.46% | ||
| GM | 70.42% | ||
| FCFM | N/A |
ROA(3y)4.11%
ROA(5y)4.1%
ROE(3y)9.34%
ROE(5y)9.13%
ROIC(3y)3.38%
ROIC(5y)3.06%
ROICexc(3y)3.43%
ROICexc(5y)3.09%
ROICexgc(3y)3.43%
ROICexgc(5y)3.09%
ROCE(3y)4.28%
ROCE(5y)3.87%
ROICexgc growth 3Y11.24%
ROICexgc growth 5Y1.13%
ROICexc growth 3Y11.22%
ROICexc growth 5Y1.11%
OM growth 3Y3.42%
OM growth 5Y-2.45%
PM growth 3Y7.21%
PM growth 5Y6.79%
GM growth 3Y0.78%
GM growth 5Y-0.57%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.65 | ||
| Cap/Depr | 199.48% | ||
| Cap/Sales | 64.56% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 89.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.49 |
F-Score6
WACC7.08%
ROIC/WACC0.51
Cap/Depr(3y)100.16%
Cap/Depr(5y)101.9%
Cap/Sales(3y)32.94%
Cap/Sales(5y)34.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.85%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%39.13%
EPS Next Y9.39%
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
EPS Next 5Y-3.11%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
Revenue Next Year6.58%
Revenue Next 2Y5.18%
Revenue Next 3Y4.67%
Revenue Next 5Y3.92%
EBIT growth 1Y8.93%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year134.72%
EBIT Next 3Y35.64%
EBIT Next 5Y26.96%
FCF growth 1Y-121.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.22%
OCF growth 3Y5.68%
OCF growth 5Y3.05%
ESSEX PROPERTY TRUST INC / ESS FAQ
What is the fundamental rating for ESS stock?
ChartMill assigns a fundamental rating of 4 / 10 to ESS.
Can you provide the valuation status for ESSEX PROPERTY TRUST INC?
ChartMill assigns a valuation rating of 2 / 10 to ESSEX PROPERTY TRUST INC (ESS). This can be considered as Overvalued.
Can you provide the profitability details for ESSEX PROPERTY TRUST INC?
ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.
What is the financial health of ESSEX PROPERTY TRUST INC (ESS) stock?
The financial health rating of ESSEX PROPERTY TRUST INC (ESS) is 2 / 10.
What is the expected EPS growth for ESSEX PROPERTY TRUST INC (ESS) stock?
The Earnings per Share (EPS) of ESSEX PROPERTY TRUST INC (ESS) is expected to grow by 9.39% in the next year.