PIEDMONT OFFICE REALTY TRU-A (PDM) Stock Fundamental Analysis
NYSE:PDM - New York Stock Exchange, Inc. - US7201902068 - REIT - Currency: USD
Overall PDM gets a fundamental rating of 2 out of 10. We evaluated PDM against 130 industry peers in the Diversified REITs industry. PDM may be in some trouble as it scores bad on both profitability and health. PDM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PDM has reported negative net income.
In the past year PDM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PDM reported negative net income in multiple years.
Each year in the past 5 years PDM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.92%, PDM is doing worse than 73.85% of the companies in the same industry.
PDM has a Return On Equity of -4.98%. This is in the lower half of the industry: PDM underperforms 70.00% of its industry peers.
With a Return On Invested Capital value of 1.58%, PDM is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
PDM had an Average Return On Invested Capital over the past 3 years of 1.61%. This is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.92% | ||
| ROE | -4.98% | ||
| ROIC | 1.58% |
ROA(3y)0.16%
ROA(5y)1.33%
ROE(3y)0.05%
ROE(5y)2.47%
ROIC(3y)1.61%
ROIC(5y)1.69%
1.3 Margins
PDM has a worse Operating Margin (13.86%) than 67.69% of its industry peers.
PDM's Operating Margin has declined in the last couple of years.
PDM's Gross Margin of 58.95% is on the low side compared to the rest of the industry. PDM is outperformed by 70.00% of its industry peers.
PDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.86% | ||
| PM (TTM) | N/A | ||
| GM | 58.95% |
OM growth 3Y-3.24%
OM growth 5Y-6.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PDM is destroying value.
PDM has more shares outstanding than it did 1 year ago.
PDM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PDM is higher compared to a year ago.
2.2 Solvency
PDM has an Altman-Z score of -0.30. This is a bad value and indicates that PDM is not financially healthy and even has some risk of bankruptcy.
PDM has a worse Altman-Z score (-0.30) than 81.54% of its industry peers.
PDM has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PDM (1.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.3 |
ROIC/WACC0.23
WACC6.75%
2.3 Liquidity
PDM has a Current Ratio of 2.04. This indicates that PDM is financially healthy and has no problem in meeting its short term obligations.
PDM's Current ratio of 2.04 is fine compared to the rest of the industry. PDM outperforms 78.46% of its industry peers.
PDM has a Quick Ratio of 2.04. This indicates that PDM is financially healthy and has no problem in meeting its short term obligations.
PDM has a Quick ratio of 2.04. This is in the better half of the industry: PDM outperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 98.36% over the past year.
Looking at the last year, PDM shows a decrease in Revenue. The Revenue has decreased by -1.29% in the last year.
Measured over the past years, PDM shows a small growth in Revenue. The Revenue has been growing by 1.36% on average per year.
EPS 1Y (TTM)98.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%263.64%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y2.56%
Revenue growth 5Y1.36%
Sales Q2Q%-1.28%
3.2 Future
The Earnings Per Share is expected to grow by 28.11% on average over the next years. This is a very strong growth
Based on estimates for the next years, PDM will show a decrease in Revenue. The Revenue will decrease by -0.46% on average per year.
EPS Next Y70.9%
EPS Next 2Y38.36%
EPS Next 3Y28.11%
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y-1.89%
Revenue Next 3Y-0.46%
Revenue Next 5YN/A
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
PDM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for PDM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
PDM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDM is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PDM's earnings are expected to grow with 28.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.36%
EPS Next 3Y28.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.70%, PDM is a good candidate for dividend investing.
In the last 3 months the price of PDM has falen by -32.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 16.29, PDM pays a better dividend. On top of this PDM pays more dividend than 81.54% of the companies listed in the same industry.
PDM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.7% |
5.2 History
The dividend of PDM decreases each year by -9.98%.
PDM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-9.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PDM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-78.24%
EPS Next 2Y38.36%
EPS Next 3Y28.11%
5.91
+0.16 (+2.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.56%
Inst Owner Change0.3%
Ins Owners0.76%
Ins Owner Change5.49%
Market Cap735.26M
Analysts74.29
Price Target9.69 (63.96%)
Short Float %1.57%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.7% |
Yearly Dividend0.5
Dividend Growth(5Y)-9.98%
DP-78.24%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-319.14%
Min EPS beat(2)-560.07%
Max EPS beat(2)-78.22%
EPS beat(4)0
Avg EPS beat(4)-209.68%
Min EPS beat(4)-560.07%
Max EPS beat(4)-58.42%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-17.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-70%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 3.71 | ||
| P/B | 0.46 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)-0.01
EYN/A
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.59
OCFY26.94%
SpS4.58
BVpS12.75
TBVpS11.84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.92% | ||
| ROE | -4.98% | ||
| ROCE | 2% | ||
| ROIC | 1.58% | ||
| ROICexc | 1.63% | ||
| ROICexgc | 1.68% | ||
| OM | 13.86% | ||
| PM (TTM) | N/A | ||
| GM | 58.95% | ||
| FCFM | N/A |
ROA(3y)0.16%
ROA(5y)1.33%
ROE(3y)0.05%
ROE(5y)2.47%
ROIC(3y)1.61%
ROIC(5y)1.69%
ROICexc(3y)1.63%
ROICexc(5y)1.7%
ROICexgc(3y)1.69%
ROICexgc(5y)1.78%
ROCE(3y)2.03%
ROCE(5y)2.14%
ROICexcg growth 3Y-2%
ROICexcg growth 5Y-8.36%
ROICexc growth 3Y-1.27%
ROICexc growth 5Y-7.91%
OM growth 3Y-3.24%
OM growth 5Y-6.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y-0.47%
F-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.41 | ||
| Cap/Depr | 96.01% | ||
| Cap/Sales | 37.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | -0.3 |
F-Score3
WACC6.75%
ROIC/WACC0.23
Cap/Depr(3y)115.95%
Cap/Depr(5y)158.85%
Cap/Sales(3y)44.72%
Cap/Sales(5y)59.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)98.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%263.64%
EPS Next Y70.9%
EPS Next 2Y38.36%
EPS Next 3Y28.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y2.56%
Revenue growth 5Y1.36%
Sales Q2Q%-1.28%
Revenue Next Year-0.68%
Revenue Next 2Y-1.89%
Revenue Next 3Y-0.46%
Revenue Next 5YN/A
EBIT growth 1Y2.34%
EBIT growth 3Y-0.77%
EBIT growth 5Y-5.41%
EBIT Next Year386.27%
EBIT Next 3Y66.79%
EBIT Next 5YN/A
FCF growth 1Y-126.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.72%
OCF growth 3Y-6.48%
OCF growth 5Y-1.02%