PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
NASDAQ:PECO - Nasdaq - US71844V2016 - REIT - Currency: USD
Overall PECO gets a fundamental rating of 4 out of 10. We evaluated PECO against 129 industry peers in the Diversified REITs industry. While PECO has a great profitability rating, there are quite some concerns on its financial health. PECO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PECO was profitable.
In the past year PECO had a positive cash flow from operations.
PECO had positive earnings in each of the past 5 years.
Each year in the past 5 years PECO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PECO (1.38%) is better than 60.47% of its industry peers.
PECO's Return On Equity of 3.09% is in line compared to the rest of the industry. PECO outperforms 58.91% of its industry peers.
PECO has a Return On Invested Capital (2.79%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PECO is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.79%) for PECO is above the 3 year average (2.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 3.09% | ||
| ROIC | 2.79% |
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
PECO's Profit Margin of 10.51% is fine compared to the rest of the industry. PECO outperforms 61.24% of its industry peers.
PECO's Profit Margin has improved in the last couple of years.
PECO has a Operating Margin (26.19%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PECO has grown nicely.
The Gross Margin of PECO (71.12%) is better than 63.57% of its industry peers.
In the last couple of years the Gross Margin of PECO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.19% | ||
| PM (TTM) | 10.51% | ||
| GM | 71.12% |
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.
The number of shares outstanding for PECO has been increased compared to 1 year ago.
PECO has more shares outstanding than it did 5 years ago.
PECO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that PECO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.78, PECO is in the better half of the industry, outperforming 65.89% of the companies in the same industry.
The Debt to FCF ratio of PECO is 10.19, which is on the high side as it means it would take PECO, 10.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.19, PECO belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
PECO has a Debt/Equity ratio of 0.99. This is a neutral value indicating PECO is somewhat dependend on debt financing.
PECO has a Debt to Equity ratio of 0.99. This is comparable to the rest of the industry: PECO outperforms 58.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 10.19 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.39
WACC7.12%
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 92.25% of its industry peers.
PECO has a Quick 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.
With a Quick ratio value of 0.15, PECO is not doing good in the industry: 91.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.33% over the past year.
PECO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.36% yearly.
Looking at the last year, PECO shows a quite strong growth in Revenue. The Revenue has grown by 9.36% in the last year.
The Revenue has been growing slightly by 4.27% on average over the past years.
EPS 1Y (TTM)16.33%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.54%
3.2 Future
The Earnings Per Share is expected to grow by 11.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.83% on average over the next years.
EPS Next Y21.04%
EPS Next 2Y13.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year9.68%
Revenue Next 2Y8.16%
Revenue Next 3Y7.83%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 61.47, which means the current valuation is very expensive for PECO.
PECO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, PECO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 54.36, the valuation of PECO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PECO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, PECO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.47 | ||
| Fwd PE | 54.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PECO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PECO is valued a bit cheaper than the industry average as 77.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| EV/EBITDA | 15.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PECO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PECO may justify a higher PE ratio.
PEG (NY)2.92
PEG (5Y)N/A
EPS Next 2Y13.55%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
PECO's Dividend Yield is slightly below the industry average, which is at 6.65.
PECO's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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 209.73% of its income as dividend. This is not a sustainable payout ratio.
DP209.73%
EPS Next 2Y13.55%
EPS Next 3Y11.53%
NASDAQ:PECO (7/21/2025, 12:12:52 PM)
35.04
+0.11 (+0.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.06%
Inst Owner Change-0.09%
Ins Owners0.53%
Ins Owner Change4.61%
Market Cap4.39B
Analysts76.47
Price Target40.19 (14.7%)
Short Float %3.13%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend1.08
Dividend Growth(5Y)-3.54%
DP209.73%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.62%
Min EPS beat(2)20.87%
Max EPS beat(2)40.37%
EPS beat(4)2
Avg EPS beat(4)3.04%
Min EPS beat(4)-36.21%
Max EPS beat(4)40.37%
EPS beat(8)6
Avg EPS beat(8)5.86%
EPS beat(12)10
Avg EPS beat(12)12.99%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.78%
Min Revenue beat(2)0.95%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)2.6%
Revenue beat(8)4
Avg Revenue beat(8)0.04%
Revenue beat(12)8
Avg Revenue beat(12)0.63%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.67%
PT rev (3m)-1.77%
EPS NQ rev (1m)-4.59%
EPS NQ rev (3m)-11.23%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.47 | ||
| Fwd PE | 54.36 | ||
| P/S | 6.48 | ||
| P/FCF | 19.65 | ||
| P/OCF | 13.23 | ||
| P/B | 1.9 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 15.27 |
EPS(TTM)0.57
EY1.63%
EPS(NY)0.64
Fwd EY1.84%
FCF(TTM)1.78
FCFY5.09%
OCF(TTM)2.65
OCFY7.56%
SpS5.41
BVpS18.43
TBVpS18.15
PEG (NY)2.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 3.09% | ||
| ROCE | 3.53% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 2.83% | ||
| OM | 26.19% | ||
| PM (TTM) | 10.51% | ||
| GM | 71.12% | ||
| FCFM | 32.96% |
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%
ROICexcg growth 3Y28.89%
ROICexcg 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 10.19 | ||
| Debt/EBITDA | 5.23 | ||
| Cap/Depr | 42.05% | ||
| Cap/Sales | 16% | ||
| Interest Coverage | 2.03 | ||
| Cash Conversion | 76.22% | ||
| Profit Quality | 313.47% | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.78 |
F-Score5
WACC7.12%
ROIC/WACC0.39
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)16.33%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y21.04%
EPS Next 2Y13.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue 1Y (TTM)9.36%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.54%
Revenue Next Year9.68%
Revenue Next 2Y8.16%
Revenue Next 3Y7.83%
Revenue Next 5YN/A
EBIT growth 1Y10.38%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year172.21%
EBIT Next 3Y46.43%
EBIT Next 5YN/A
FCF growth 1Y21.71%
FCF growth 3Y8.44%
FCF growth 5Y12.26%
OCF growth 1Y13.16%
OCF growth 3Y8.38%
OCF growth 5Y8.09%