ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
NYSE:ESS - US2971781057 - REIT
265.46 USD
-1.29 (-0.48%)
265.46 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. While showing a medium growth rate, ESS is valued expensive at the moment.
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.
In the past 5 years ESS has always been profitable.
ESS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ESS (6.07%) is better than 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 14.20%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.46%, ESS belongs to the top of the industry, outperforming 85.00% 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 2.61%.
The last Return On Invested Capital (3.46%) for ESS is above the 3 year average (3.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 14.2% | ||
| ROIC | 3.46% |
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
Looking at the Profit Margin, with a value of 43.51%, ESS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
ESS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.29%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ESS has declined.
ESS's Gross Margin of 70.55% is amongst the best of the industry. ESS outperforms 100.00% of its industry peers.
ESS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.29% | ||
| PM (TTM) | 43.51% | ||
| GM | 70.55% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESS is destroying value.
Compared to 1 year ago, ESS has about the same amount of shares outstanding.
ESS has less shares outstanding than it did 5 years ago.
ESS has a worse debt/assets ratio than last year.
2.2 Solvency
ESS has an Altman-Z score of 1.52. This is a bad value and indicates that ESS is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.52, ESS is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that ESS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.20, ESS perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.48
WACC7.23%
2.3 Liquidity
ESS has a Current Ratio of 0.71. 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 better Current ratio (0.71) than 65.00% of its industry peers.
A Quick Ratio of 0.36 indicates that ESS may have some problems paying its short term obligations.
ESS has a Quick ratio of 0.36. This is comparable to the rest of the industry: ESS outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.17% over the past year.
The Earnings Per Share has been growing slightly by 5.66% on average over the past years.
The Revenue has been growing slightly by 7.56% 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)20.17%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%137.24%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.71%
3.2 Future
Based on estimates for the next years, ESS will show a decrease in Earnings Per Share. The EPS will decrease by -4.22% on average per year.
ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y3.89%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
EPS Next 5Y-4.22%
Revenue Next Year6.41%
Revenue Next 2Y5.04%
Revenue Next 3Y4.6%
Revenue Next 5Y3.98%
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
ESS is valuated quite expensively with a Price/Earnings ratio of 27.34.
Based on the Price/Earnings ratio, ESS is valued cheaper than 85.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. ESS is around the same levels.
With a Price/Forward Earnings ratio of 44.30, ESS can be considered very expensive at the moment.
ESS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESS is cheaper than 65.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESS to the average of the S&P500 Index (22.81), we can say ESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 44.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESS does not grow enough to justify the current Price/Earnings ratio.
ESS has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ESS's earnings are expected to decrease with -9.64% in the coming years.
PEG (NY)7.03
PEG (5Y)4.83
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 4.79, ESS is paying slightly less dividend.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
The dividend of ESS has a limited annual growth rate of 4.65%.
ESS has been paying a dividend for at least 10 years, so it has a reliable track record.
ESS has decreased its dividend recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
79.64% of the earnings are spent on dividend by ESS. This is not a sustainable payout ratio.
ESS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP79.64%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
265.46
-1.29 (-0.48%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change-0.59%
Ins Owners1.14%
Ins Owner Change4.31%
Market Cap17.10B
Analysts67.33
Price Target302.13 (13.81%)
Short Float %3.21%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP79.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)126.56%
Min EPS beat(2)123.13%
Max EPS beat(2)129.99%
EPS beat(4)3
Avg EPS beat(4)69.24%
Min EPS beat(4)-9.12%
Max EPS beat(4)129.99%
EPS beat(8)5
Avg EPS beat(8)59.09%
EPS beat(12)9
Avg EPS beat(12)55.58%
EPS beat(16)11
Avg EPS beat(16)49.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.32%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)-4.6%
PT rev (3m)-4.57%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)19.89%
EPS NY rev (3m)41.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 44.3 | ||
| P/S | 9.29 | ||
| P/FCF | N/A | ||
| P/OCF | 16.57 | ||
| P/B | 3.03 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 20.67 |
EPS(TTM)9.71
EY3.66%
EPS(NY)5.99
Fwd EY2.26%
FCF(TTM)-3.69
FCFYN/A
OCF(TTM)16.02
OCFY6.04%
SpS28.56
BVpS87.5
TBVpS87.5
PEG (NY)7.03
PEG (5Y)4.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 14.2% | ||
| ROCE | 4.37% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 3.47% | ||
| OM | 30.29% | ||
| PM (TTM) | 43.51% | ||
| GM | 70.55% | ||
| 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%
ROICexcg growth 3Y11.24%
ROICexcg 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 | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.85 | ||
| Cap/Depr | 212.3% | ||
| Cap/Sales | 69.02% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 89.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.52 |
F-Score6
WACC7.23%
ROIC/WACC0.48
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)20.17%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%137.24%
EPS Next Y3.89%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
EPS Next 5Y-4.22%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.71%
Revenue Next Year6.41%
Revenue Next 2Y5.04%
Revenue Next 3Y4.6%
Revenue Next 5Y3.98%
EBIT growth 1Y4.68%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year136%
EBIT Next 3Y35.6%
EBIT Next 5Y29.28%
FCF growth 1Y-137.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.12%
OCF growth 3Y5.68%
OCF growth 5Y3.05%