PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
USA - NASDAQ:PECO - US71844V2016 - REIT
34.73 USD
+0.07 (+0.2%)
34.73 USD
0 (0%)
Overall PECO gets a fundamental rating of 4 out of 10. We evaluated PECO against 127 industry peers in the Diversified REITs industry. There are concerns on the financial health of PECO while its profitability can be described as average. PECO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PECO was profitable.
PECO had a positive operating cash flow in the past year.
Each year in the past 5 years PECO has been profitable.
Each year in the past 5 years PECO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PECO (1.31%) is comparable to the rest of the industry.
PECO has a Return On Equity (3.01%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.76%, PECO is in line with its industry, outperforming 50.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PECO is in line with the industry average of 3.04%.
The last Return On Invested Capital (2.76%) for PECO is above the 3 year average (2.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 3.01% | ||
| ROIC | 2.76% |
ROA(3y)1.14%
ROA(5y)0.77%
ROE(3y)2.44%
ROE(5y)1.66%
ROIC(3y)2.51%
ROIC(5y)2.07%
1.3 Margins
With a Profit Margin value of 9.91%, PECO perfoms like the industry average, outperforming 55.12% of the companies in the same industry.
In the last couple of years the Profit Margin of PECO has grown nicely.
PECO has a Operating Margin of 25.85%. This is comparable to the rest of the industry: PECO outperforms 57.48% of its industry peers.
In the last couple of years the Operating Margin of PECO has grown nicely.
PECO's Gross Margin of 71.26% is fine compared to the rest of the industry. PECO outperforms 64.57% of its industry peers.
PECO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.85% | ||
| PM (TTM) | 9.91% | ||
| GM | 71.26% |
OM growth 3Y23.39%
OM growth 5Y7%
PM growth 3Y49.54%
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PECO is destroying value.
PECO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PECO has been increased compared to 5 years ago.
Compared to 1 year ago, PECO has a worse debt to assets ratio.
2.2 Solvency
PECO has an Altman-Z score of 0.73. This is a bad value and indicates that PECO is not financially healthy and even has some risk of bankruptcy.
PECO's Altman-Z score of 0.73 is fine compared to the rest of the industry. PECO outperforms 62.99% of its industry peers.
PECO has a debt to FCF ratio of 10.58. This is a negative value and a sign of low solvency as PECO would need 10.58 years to pay back of all of its debts.
The Debt to FCF ratio of PECO (10.58) is better than 88.19% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that PECO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.04, PECO is in line with its industry, outperforming 59.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.4
WACC6.83%
2.3 Liquidity
PECO has a Current Ratio of 0.15. This is a bad value and indicates that PECO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PECO (0.15) is worse than 93.70% of its industry peers.
A Quick Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
The Quick ratio of PECO (0.15) is worse than 93.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
PECO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 141.30%, which is quite impressive.
The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
Looking at the last year, PECO shows a quite strong growth in Revenue. The Revenue has grown by 10.73% in the last year.
The Revenue has been growing slightly by 4.27% on average over the past years.
EPS 1Y (TTM)141.3%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%622.22%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
3.2 Future
PECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.50% yearly.
Based on estimates for the next years, PECO will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y15.26%
EPS Next 2Y13.91%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue Next Year9.88%
Revenue Next 2Y7.53%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.29 indicates a quite expensive valuation of PECO.
Compared to the rest of the industry, the Price/Earnings ratio of PECO indicates a somewhat cheap valuation: PECO is cheaper than 65.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, PECO is valued at the same level.
PECO is valuated quite expensively with a Price/Forward Earnings ratio of 53.54.
The rest of the industry has a similar Price/Forward Earnings ratio as PECO.
PECO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 53.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PECO.
Based on the Price/Free Cash Flow ratio, PECO is valued a bit cheaper than 76.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.28 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PECO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PECO's earnings are expected to grow with 12.50% in the coming years.
PEG (NY)2.05
PEG (5Y)N/A
EPS Next 2Y13.91%
EPS Next 3Y12.5%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.75%.
PECO's Dividend Yield is slightly below the industry average, which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.30, PECO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of PECO decreases each year by -3.54%.
PECO has been paying a dividend for over 5 years, so it has already some track record.
PECO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.54%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PECO pays out 238.70% of its income as dividend. This is not a sustainable payout ratio.
DP238.7%
EPS Next 2Y13.91%
EPS Next 3Y12.5%
34.73
+0.07 (+0.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.11%
Inst Owner Change-0.07%
Ins Owners0.53%
Ins Owner Change3.86%
Market Cap4.36B
Revenue(TTM)711.78M
Net Income(TTM)68.84M
Analysts77.78
Price Target40.09 (15.43%)
Short Float %2.83%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend1.08
Dividend Growth(5Y)-3.54%
DP238.7%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.41%
Min EPS beat(2)-25.54%
Max EPS beat(2)40.37%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-36.21%
Max EPS beat(4)40.37%
EPS beat(8)5
Avg EPS beat(8)0.46%
EPS beat(12)9
Avg EPS beat(12)7.88%
EPS beat(16)12
Avg EPS beat(16)-42.9%
Revenue beat(2)2
Avg Revenue beat(2)1.45%
Min Revenue beat(2)0.29%
Max Revenue beat(2)2.6%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)2.6%
Revenue beat(8)4
Avg Revenue beat(8)-0.1%
Revenue beat(12)8
Avg Revenue beat(12)0.64%
Revenue beat(16)12
Avg Revenue beat(16)1.75%
PT rev (1m)0%
PT rev (3m)-0.25%
EPS NQ rev (1m)-8.78%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)-7.98%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.29 | ||
| Fwd PE | 53.54 | ||
| P/S | 6.28 | ||
| P/FCF | 19.28 | ||
| P/OCF | 12.47 | ||
| P/B | 1.9 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)1.11
EY3.2%
EPS(NY)0.65
Fwd EY1.87%
FCF(TTM)1.8
FCFY5.19%
OCF(TTM)2.78
OCFY8.02%
SpS5.53
BVpS18.23
TBVpS17.95
PEG (NY)2.05
PEG (5Y)N/A
Graham Number21.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 3.01% | ||
| ROCE | 3.5% | ||
| ROIC | 2.76% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 2.81% | ||
| OM | 25.85% | ||
| PM (TTM) | 9.91% | ||
| GM | 71.26% | ||
| FCFM | 32.57% |
ROA(3y)1.14%
ROA(5y)0.77%
ROE(3y)2.44%
ROE(5y)1.66%
ROIC(3y)2.51%
ROIC(5y)2.07%
ROICexc(3y)2.52%
ROICexc(5y)2.08%
ROICexgc(3y)2.56%
ROICexgc(5y)2.12%
ROCE(3y)3.18%
ROCE(5y)2.62%
ROICexgc growth 3Y28.89%
ROICexgc growth 5Y10.24%
ROICexc growth 3Y28.89%
ROICexc growth 5Y10.67%
OM growth 3Y23.39%
OM growth 5Y7%
PM growth 3Y49.54%
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y0.35%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 46.09% | ||
| Cap/Sales | 17.79% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 78.14% | ||
| Profit Quality | 328.62% | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.73 |
F-Score6
WACC6.83%
ROIC/WACC0.4
Cap/Depr(3y)40.7%
Cap/Depr(5y)36.89%
Cap/Sales(3y)16.05%
Cap/Sales(5y)15.02%
Profit Quality(3y)370.81%
Profit Quality(5y)1082.19%
High Growth Momentum
Growth
EPS 1Y (TTM)141.3%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%622.22%
EPS Next Y15.26%
EPS Next 2Y13.91%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
Revenue Next Year9.88%
Revenue Next 2Y7.53%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
EBIT growth 1Y8.97%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year173.11%
EBIT Next 3Y45.4%
EBIT Next 5YN/A
FCF growth 1Y33.38%
FCF growth 3Y8.44%
FCF growth 5Y12.26%
OCF growth 1Y25.46%
OCF growth 3Y8.38%
OCF growth 5Y8.09%
PHILLIPS EDISON & COMPANY IN / PECO FAQ
What is the fundamental rating for PECO stock?
ChartMill assigns a fundamental rating of 4 / 10 to PECO.
What is the valuation status of PHILLIPS EDISON & COMPANY IN (PECO) stock?
ChartMill assigns a valuation rating of 3 / 10 to PHILLIPS EDISON & COMPANY IN (PECO). This can be considered as Overvalued.
What is the profitability of PECO stock?
PHILLIPS EDISON & COMPANY IN (PECO) has a profitability rating of 6 / 10.
What is the valuation of PHILLIPS EDISON & COMPANY IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PHILLIPS EDISON & COMPANY IN (PECO) is 31.29 and the Price/Book (PB) ratio is 1.9.
What is the earnings growth outlook for PHILLIPS EDISON & COMPANY IN?
The Earnings per Share (EPS) of PHILLIPS EDISON & COMPANY IN (PECO) is expected to grow by 15.26% in the next year.