PIEDMONT OFFICE REALTY TRU-A (PDM) Stock Fundamental Analysis
NYSE:PDM - New York Stock Exchange, Inc. - US7201902068 - REIT - Currency: USD
We assign a fundamental rating of 2 out of 10 to PDM. PDM was compared to 129 industry peers in the Diversified REITs industry. PDM has a bad profitability rating. Also its financial health evaluation is rather negative. PDM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
PDM had negative earnings in the past year.
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
PDM has a worse Return On Assets (-1.53%) than 69.77% of its industry peers.
PDM has a worse Return On Equity (-3.94%) than 68.22% of its industry peers.
The Return On Invested Capital of PDM (1.62%) is worse than 73.64% of its industry peers.
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 3.15%.
The last Return On Invested Capital (1.62%) for PDM is above the 3 year average (1.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.53% | ||
| ROE | -3.94% | ||
| ROIC | 1.62% |
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 (13.98%) than 67.44% of its industry peers.
In the last couple of years the Operating Margin of PDM has declined.
With a Gross Margin value of 59.08%, PDM is not doing good in the industry: 68.99% of the companies in the same industry are doing better.
PDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.98% | ||
| PM (TTM) | N/A | ||
| GM | 59.08% |
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.
Compared to 1 year ago, PDM has more shares outstanding
Compared to 5 years ago, PDM has less shares outstanding
Compared to 1 year ago, PDM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.28, we must say that PDM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PDM (-0.28) is worse than 80.62% 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.
With a Debt to Equity ratio value of 1.40, PDM perfoms like the industry average, outperforming 44.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.28 |
ROIC/WACC0.21
WACC7.59%
2.3 Liquidity
A Current Ratio of 2.00 indicates that PDM has no problem at all paying its short term obligations.
PDM has a Current ratio of 2.00. This is in the better half of the industry: PDM outperforms 79.07% of its industry peers.
PDM has a Quick Ratio of 2.00. This indicates that PDM is financially healthy and has no problem in meeting its short term obligations.
PDM has a Quick ratio of 2.00. This is in the better half of the industry: PDM outperforms 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.23% over the past year.
Looking at the last year, PDM shows a decrease in Revenue. The Revenue has decreased by -1.98% 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)26.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%63.64%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.56%
Revenue growth 5Y1.36%
Sales Q2Q%-1.28%
3.2 Future
PDM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.11% yearly.
Based on estimates for the next years, PDM will show a decrease in Revenue. The Revenue will decrease by -0.25% on average per year.
EPS Next Y70.9%
EPS Next 2Y38.36%
EPS Next 3Y28.11%
EPS Next 5YN/A
Revenue Next Year0.26%
Revenue Next 2Y-1.42%
Revenue Next 3Y-0.25%
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
The Price/Earnings Ratio is negative for PDM. In the last year negative earnings were reported.
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
Based on the Enterprise Value to EBITDA ratio, PDM is valued cheaply inside the industry as 80.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.39 |
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
PDM has a Yearly Dividend Yield of 5.01%, which is a nice return.
Compared to an average industry Dividend Yield of 6.77, PDM has a dividend in line with its industry peers.
PDM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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-101.08%
EPS Next 2Y38.36%
EPS Next 3Y28.11%
7.39
-0.12 (-1.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.47%
Inst Owner Change-0.75%
Ins Owners0.91%
Ins Owner Change8.56%
Market Cap919.39M
Analysts74.29
Price Target9.18 (24.22%)
Short Float %2.22%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
Yearly Dividend0.5
Dividend Growth(5Y)-9.98%
DP-101.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-286.61%
Min EPS beat(2)-560.07%
Max EPS beat(2)-13.15%
EPS beat(4)0
Avg EPS beat(4)-177.46%
Min EPS beat(4)-560.07%
Max EPS beat(4)-13.15%
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)-0.06%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)-0.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)3
Avg Revenue beat(12)-0.78%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.26%
PT rev (3m)-5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.43%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.62 | ||
| P/FCF | N/A | ||
| P/OCF | 5.15 | ||
| P/B | 0.59 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)-0.45
EYN/A
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)1.43
OCFY19.41%
SpS4.57
BVpS12.54
TBVpS11.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.53% | ||
| ROE | -3.94% | ||
| ROCE | 2.05% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.62% | ||
| ROICexgc | 1.66% | ||
| OM | 13.98% | ||
| PM (TTM) | N/A | ||
| GM | 59.08% | ||
| 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 | 7.28 | ||
| Cap/Depr | 93.19% | ||
| Cap/Sales | 36.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | -0.28 |
F-Score3
WACC7.59%
ROIC/WACC0.21
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)26.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%63.64%
EPS Next Y70.9%
EPS Next 2Y38.36%
EPS Next 3Y28.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.56%
Revenue growth 5Y1.36%
Sales Q2Q%-1.28%
Revenue Next Year0.26%
Revenue Next 2Y-1.42%
Revenue Next 3Y-0.25%
Revenue Next 5YN/A
EBIT growth 1Y0.98%
EBIT growth 3Y-0.77%
EBIT growth 5Y-5.41%
EBIT Next Year386.27%
EBIT Next 3Y66.79%
EBIT Next 5YN/A
FCF growth 1Y84.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.29%
OCF growth 3Y-6.48%
OCF growth 5Y-1.02%