ESSEX PROPERTY TRUST INC (ESS)
US2971781057 - REIT
ESS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Residential REITs industry. ESS scores excellent on profitability, but there are some minor concerns on its financial health. ESS has a correct valuation and a medium growth rate. ESS also has an excellent dividend rating. These ratings could make ESS a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ESS was profitable.
In the past year ESS had a positive cash flow from operations.
Each year in the past 5 years ESS has been profitable.
ESS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESS has a Return On Assets of 3.28%. This is in the better half of the industry: ESS outperforms 61.90% of its industry peers.
ESS has a Return On Equity (7.48%) which is comparable to the rest of the industry.
ESS's Return On Invested Capital of 3.48% is fine compared to the rest of the industry. ESS outperforms 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESS is in line with the industry average of 2.53%.
The last Return On Invested Capital (3.48%) for ESS is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 7.48% | ||
| ROIC | 3.48% |
ROA(3y)3.45%
ROA(5y)3.64%
ROE(3y)7.59%
ROE(5y)7.86%
ROIC(3y)3.08%
ROIC(5y)3.02%
1.3 Margins
The Profit Margin of ESS (24.31%) is better than 76.19% of its industry peers.
ESS's Profit Margin has declined in the last couple of years.
ESS has a better Operating Margin (31.52%) than 90.48% of its industry peers.
In the last couple of years the Operating Margin of ESS has remained more or less at the same level.
ESS's Gross Margin of 70.92% is amongst the best of the industry. ESS outperforms 95.24% of its industry peers.
ESS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.52% | ||
| PM (TTM) | 24.31% | ||
| GM | 70.92% |
OM growth 3Y3.12%
OM growth 5Y-0.4%
PM growth 3Y-13.86%
PM growth 5Y-2.7%
GM growth 3Y0.17%
GM growth 5Y-0.43%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for ESS has been reduced compared to 5 years ago.
ESS has a worse debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 1.49, ESS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of ESS is 8.45, which is on the high side as it means it would take ESS, 8.45 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.45, ESS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ESS has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
ESS has a Debt to Equity ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.47
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.24 indicates that ESS should not have too much problems paying its short term obligations.
ESS's Current ratio of 1.24 is fine compared to the rest of the industry. ESS outperforms 76.19% of its industry peers.
ESS has a Quick Ratio of 1.19. This is a normal value and indicates that ESS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ESS (1.19) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
ESS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.48%.
ESS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.42% yearly.
ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.89%.
ESS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.58% yearly.
EPS 1Y (TTM)0.48%
EPS 3Y3.75%
EPS 5Y1.42%
EPS growth Q2Q-64.34%
Revenue 1Y (TTM)3.89%
Revenue growth 3Y3.73%
Revenue growth 5Y3.58%
Revenue growth Q2Q1.58%
3.2 Future
Based on estimates for the next years, ESS will show a small growth in Earnings Per Share. The EPS will grow by 5.92% on average per year.
ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.97% yearly.
EPS Next Y-15.63%
EPS Next 2Y-4.87%
EPS Next 3Y-0.36%
EPS Next 5Y5.92%
Revenue Next Year2.26%
Revenue Next 2Y2.5%
Revenue Next 3Y3.06%
Revenue Next 5Y2.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 39.26 indicates a quite expensive valuation of ESS.
61.90% of the companies in the same industry are more expensive than ESS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.25. ESS is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.54 indicates a quite expensive valuation of ESS.
Based on the Price/Forward Earnings ratio, ESS is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, ESS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.26 | ||
| Fwd PE | 46.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ESS is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
The decent profitability rating of ESS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)27.62
EPS Next 2Y-4.87%
EPS Next 3Y-0.36%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 4.62, ESS has a dividend in line with its industry peers.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of ESS has a limited annual growth rate of 3.57%.
ESS has been paying a dividend for at least 10 years, so it has a reliable track record.
ESS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.57%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
144.64% of the earnings are spent on dividend by ESS. This is not a sustainable payout ratio.
ESS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP144.64%
EPS Next 2Y-4.87%
EPS Next 3Y-0.36%
ESSEX PROPERTY TRUST INC
NYSE:ESS (4/24/2024, 7:04:00 PM)
After market: 247.74 0 (0%)247.74
+5.59 (+2.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 39.26 | ||
| Fwd PE | 46.54 | ||
| 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)27.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 7.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.52% | ||
| PM (TTM) | 24.31% | ||
| GM | 70.92% | ||
| 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 Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 | ||
| 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)0.48%
EPS 3Y3.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.89%
Revenue growth 3Y3.73%
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