ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - NYSE:ESS - US2971781057 - REIT
266.39 USD
-1.16 (-0.43%)
266.4 USD
0.01 (0%)
Taking everything into account, ESS scores 4 out of 10 in our fundamental rating. ESS was compared to 20 industry peers in the Residential REITs industry. While ESS belongs to the best of the industry regarding profitability, 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.
ESS had a positive operating cash flow in the past year.
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.
ESS's Return On Equity of 14.20% is amongst the best of the industry. ESS outperforms 90.00% of its industry peers.
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 2.59%.
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
With an excellent Profit Margin value of 43.51%, ESS belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESS has grown nicely.
ESS has a better Operating Margin (30.29%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of ESS has declined.
ESS has a Gross Margin of 70.55%. This is amongst the best in the industry. ESS outperforms 100.00% of its industry peers.
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 | 30.29% | ||
| 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
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
ESS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that ESS is in the distress zone and has some risk of bankruptcy.
ESS has a better Altman-Z score (1.52) than 70.00% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that ESS has dependencies on debt financing.
The Debt to Equity ratio of ESS (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.48
WACC7.14%
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 Current ratio of 0.71. This is in the better half of the industry: ESS outperforms 65.00% of its industry peers.
ESS has a Quick 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's Quick ratio of 0.36 is in line compared 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
ESS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.17%, 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.
Looking at the last year, ESS shows a small growth in Revenue. The Revenue has grown by 7.56% in the last year.
The Revenue has been growing slightly by 3.98% on average over the past years.
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
ESS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.22% yearly.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y3.89%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
EPS Next 5Y-4.22%
Revenue Next Year6.46%
Revenue Next 2Y5.1%
Revenue Next 3Y4.62%
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
Based on the Price/Earnings ratio of 27.43, the valuation of ESS can be described as expensive.
ESS's Price/Earnings ratio is rather cheap when compared to the industry. ESS is cheaper than 85.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESS to the average of the S&P500 Index (27.41), we can say ESS is valued inline with the index average.
With a Price/Forward Earnings ratio of 44.45, ESS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ESS to the average of the S&P500 Index (22.87), we can say ESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 44.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)7.05
PEG (5Y)4.85
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.83%, ESS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.22, ESS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, ESS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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.
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.
The Dividend Rate of ESS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP79.64%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
266.39
-1.16 (-0.43%)
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 Cap17.16B
Analysts66.67
Price Target300 (12.62%)
Short Float %2.09%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)-3.76%
PT rev (3m)-5.1%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0%
EPS NY rev (3m)37.51%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.43 | ||
| Fwd PE | 44.45 | ||
| P/S | 9.33 | ||
| P/FCF | N/A | ||
| P/OCF | 16.62 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 20.65 |
EPS(TTM)9.71
EY3.65%
EPS(NY)5.99
Fwd EY2.25%
FCF(TTM)-3.69
FCFYN/A
OCF(TTM)16.02
OCFY6.02%
SpS28.56
BVpS87.5
TBVpS87.5
PEG (NY)7.05
PEG (5Y)4.85
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
WACC7.14%
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 Year6.46%
Revenue Next 2Y5.1%
Revenue Next 3Y4.62%
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 5Y27.49%
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%