ESSEX PROPERTY TRUST INC (ESS) Fundamental Analysis & Valuation

NYSE:ESS • US2971781057

Current stock price

240.19 USD
-6.09 (-2.47%)
At close:
240.19 USD
0 (0%)
After Hours:

This ESS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ESS Profitability Analysis

1.1 Basic Checks

  • In the past year ESS was profitable.
  • In the past year ESS had a positive cash flow from operations.
  • ESS had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ESS had a positive operating cash flow.
ESS Yearly Net Income VS EBIT VS OCF VS FCFESS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of ESS (5.09%) is better than 80.00% of its industry peers.
  • ESS has a Return On Equity of 12.08%. This is amongst the best in the industry. ESS outperforms 85.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.73%, 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 3.52%. This is in line with the industry average of 2.74%.
  • The last Return On Invested Capital (3.73%) for ESS is above the 3 year average (3.52%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.09%
ROE 12.08%
ROIC 3.73%
ROA(3y)4.7%
ROA(5y)4.23%
ROE(3y)10.99%
ROE(5y)9.65%
ROIC(3y)3.52%
ROIC(5y)3.26%
ESS Yearly ROA, ROE, ROICESS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • ESS has a better Profit Margin (35.48%) than 85.00% of its industry peers.
  • ESS's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 31.78%, ESS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ESS has grown nicely.
  • Looking at the Gross Margin, with a value of 70.38%, ESS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • ESS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 31.78%
PM (TTM) 35.48%
GM 70.38%
OM growth 3Y0.51%
OM growth 5Y2.03%
PM growth 3Y11.77%
PM growth 5Y-1.38%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
ESS Yearly Profit, Operating, Gross MarginsESS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. ESS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESS is destroying value.
  • The number of shares outstanding for ESS has been increased compared to 1 year ago.
  • The number of shares outstanding for ESS has been reduced compared to 5 years ago.
  • Compared to 1 year ago, ESS has a worse debt to assets ratio.
ESS Yearly Shares OutstandingESS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
ESS Yearly Total Debt VS Total AssetsESS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • Based on the Altman-Z score of 1.41, we must say that ESS is in the distress zone and has some risk of bankruptcy.
  • ESS has a Altman-Z score of 1.41. This is in the better half of the industry: ESS outperforms 75.00% of its industry peers.
  • A Debt/Equity ratio of 1.23 is on the high side and indicates that ESS has dependencies on debt financing.
  • ESS has a Debt to Equity ratio (1.23) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 1.41
ROIC/WACC0.53
WACC7.1%
ESS Yearly LT Debt VS Equity VS FCFESS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.73 indicates that ESS may have some problems paying its short term obligations.
  • ESS has a Current ratio of 0.73. This is in the better half of the industry: ESS outperforms 65.00% of its industry peers.
  • ESS has a Quick Ratio of 0.73. 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 (0.39) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.39
ESS Yearly Current Assets VS Current LiabilitesESS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ESS Growth Analysis

3.1 Past

  • ESS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.16%, which is quite good.
  • ESS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.00% yearly.
  • The Revenue has been growing slightly by 6.36% in the past year.
  • The Revenue has been growing slightly by 4.76% on average over the past years.
EPS 1Y (TTM)18.16%
EPS 3Y18.35%
EPS 5Y13%
EPS Q2Q%-1.57%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y5.51%
Revenue growth 5Y4.76%
Sales Q2Q%5.59%

3.2 Future

  • Based on estimates for the next years, ESS will show a decrease in Earnings Per Share. The EPS will decrease by -6.14% on average per year.
  • ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y-42.24%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
EPS Next 5Y-6.14%
Revenue Next Year4.07%
Revenue Next 2Y3.68%
Revenue Next 3Y4.02%
Revenue Next 5Y2.64%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ESS Yearly Revenue VS EstimatesESS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B
ESS Yearly EPS VS EstimatesESS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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2

4. ESS Valuation Analysis

4.1 Price/Earnings Ratio

  • ESS is valuated rather expensively with a Price/Earnings ratio of 23.07.
  • Compared to the rest of the industry, the Price/Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 80.00% of the companies listed in the same industry.
  • ESS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.23.
  • ESS is valuated quite expensively with a Price/Forward Earnings ratio of 39.95.
  • 70.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of ESS to the average of the S&P500 Index (23.28), we can say ESS is valued expensively.
Industry RankSector Rank
PE 23.07
Fwd PE 39.95
ESS Price Earnings VS Forward Price EarningsESS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than 65.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.71
ESS Per share dataESS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The excellent profitability rating of ESS may justify a higher PE ratio.
  • ESS's earnings are expected to decrease with -12.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%

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4

5. ESS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.12%, ESS is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 46.07, ESS's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than ESS!
  • Compared to an average S&P500 Dividend Yield of 1.91, ESS pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.12%

5.2 History

  • The dividend of ESS has a limited annual growth rate of 4.42%.
  • 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)4.42%
Div Incr Years1
Div Non Decr Years1
ESS Yearly Dividends per shareESS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • 97.67% 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.
DP97.67%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
ESS Yearly Income VS Free CF VS DividendESS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M
ESS Dividend Payout.ESS Dividend Payout, showing the Payout Ratio.ESS Dividend Payout.PayoutRetained Earnings

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ESS Fundamentals: All Metrics, Ratios and Statistics

ESSEX PROPERTY TRUST INC

NYSE:ESS (3/20/2026, 8:04:00 PM)

After market: 240.19 0 (0%)

240.19

-6.09 (-2.47%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners102.46%
Inst Owner Change-1.6%
Ins Owners1.15%
Ins Owner Change3.42%
Market Cap15.49B
Revenue(TTM)1.89B
Net Income(TTM)669.67M
Analysts63.87
Price Target285.77 (18.98%)
Short Float %2.8%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 4.12%
Yearly Dividend10.16
Dividend Growth(5Y)4.42%
DP97.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.36%
Min EPS beat(2)-16.38%
Max EPS beat(2)73.1%
EPS beat(4)3
Avg EPS beat(4)77.46%
Min EPS beat(4)-16.38%
Max EPS beat(4)129.99%
EPS beat(8)6
Avg EPS beat(8)70.63%
EPS beat(12)8
Avg EPS beat(12)51.95%
EPS beat(16)10
Avg EPS beat(16)42.55%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.34%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)-0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)2
Avg Revenue beat(12)-0.59%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.47%
PT rev (3m)-1.57%
EPS NQ rev (1m)-6.31%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)-1.71%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.56%
Valuation
Industry RankSector Rank
PE 23.07
Fwd PE 39.95
P/S 8.21
P/FCF N/A
P/OCF 14.41
P/B 2.79
P/tB 2.79
EV/EBITDA 18.71
EPS(TTM)10.41
EY4.33%
EPS(NY)6.01
Fwd EY2.5%
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)16.66
OCFY6.94%
SpS29.27
BVpS85.94
TBVpS85.94
PEG (NY)N/A
PEG (5Y)1.77
Graham Number141.88
Profitability
Industry RankSector Rank
ROA 5.09%
ROE 12.08%
ROCE 4.73%
ROIC 3.73%
ROICexc 3.76%
ROICexgc 3.76%
OM 31.78%
PM (TTM) 35.48%
GM 70.38%
FCFM N/A
ROA(3y)4.7%
ROA(5y)4.23%
ROE(3y)10.99%
ROE(5y)9.65%
ROIC(3y)3.52%
ROIC(5y)3.26%
ROICexc(3y)3.57%
ROICexc(5y)3.3%
ROICexgc(3y)3.58%
ROICexgc(5y)3.3%
ROCE(3y)4.45%
ROCE(5y)4.13%
ROICexgc growth 3Y4.14%
ROICexgc growth 5Y6.66%
ROICexc growth 3Y4.14%
ROICexc growth 5Y6.65%
OM growth 3Y0.51%
OM growth 5Y2.03%
PM growth 3Y11.77%
PM growth 5Y-1.38%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
F-Score5
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Debt/EBITDA 5.63
Cap/Depr 183.61%
Cap/Sales 59.1%
Interest Coverage 2.37
Cash Conversion 88.99%
Profit Quality N/A
Current Ratio 0.73
Quick Ratio 0.39
Altman-Z 1.41
F-Score5
WACC7.1%
ROIC/WACC0.53
Cap/Depr(3y)142.23%
Cap/Depr(5y)111.67%
Cap/Sales(3y)46.22%
Cap/Sales(5y)36.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.16%
EPS 3Y18.35%
EPS 5Y13%
EPS Q2Q%-1.57%
EPS Next Y-42.24%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
EPS Next 5Y-6.14%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y5.51%
Revenue growth 5Y4.76%
Sales Q2Q%5.59%
Revenue Next Year4.07%
Revenue Next 2Y3.68%
Revenue Next 3Y4.02%
Revenue Next 5Y2.64%
EBIT growth 1Y13.66%
EBIT growth 3Y6.05%
EBIT growth 5Y6.89%
EBIT Next Year109.65%
EBIT Next 3Y31.53%
EBIT Next 5Y22.52%
FCF growth 1Y49.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.57%
OCF growth 3Y3.27%
OCF growth 5Y5.99%

ESSEX PROPERTY TRUST INC / ESS Fundamental Analysis FAQ

What is the fundamental rating for ESS stock?

ChartMill assigns a fundamental rating of 4 / 10 to ESS.


What is the valuation status for ESS stock?

ChartMill assigns a valuation rating of 2 / 10 to ESSEX PROPERTY TRUST INC (ESS). This can be considered as Overvalued.


How profitable is ESSEX PROPERTY TRUST INC (ESS) stock?

ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.


Can you provide the expected EPS growth for ESS stock?

The Earnings per Share (EPS) of ESSEX PROPERTY TRUST INC (ESS) is expected to decline by -42.24% in the next year.


Is the dividend of ESSEX PROPERTY TRUST INC sustainable?

The dividend rating of ESSEX PROPERTY TRUST INC (ESS) is 4 / 10 and the dividend payout ratio is 97.67%.