PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
USA - NASDAQ:PECO - US71844V2016 - REIT
35.6 USD
-0.36 (-1%)
35.6 USD
0 (0%)
PECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While PECO is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year PECO had a positive cash flow from operations.
In the past 5 years PECO has always been profitable.
PECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.31%, PECO perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.01%, PECO is in line with its industry, outperforming 55.38% of the companies in the same industry.
With a Return On Invested Capital value of 2.76%, PECO perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
PECO had an Average Return On Invested Capital over the past 3 years of 2.51%. This is in line with the industry average of 3.05%.
The 3 year average ROIC (2.51%) for PECO is below the current ROIC(2.76%), indicating increased profibility in the last year.
| 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
PECO's Profit Margin of 9.91% is in line compared to the rest of the industry. PECO outperforms 56.15% of its industry peers.
PECO's Profit Margin has improved in the last couple of years.
PECO has a Operating Margin of 25.85%. This is comparable to the rest of the industry: PECO outperforms 57.69% of its industry peers.
PECO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 71.26%, PECO is doing good in the industry, outperforming 65.38% of the companies in the same industry.
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
PECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PECO has more shares outstanding
PECO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PECO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.75, 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 0.75, PECO is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
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 88.46% 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.
The Debt to Equity ratio of PECO (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.4
WACC6.89%
2.3 Liquidity
A Current Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
PECO has a worse Current ratio (0.15) than 93.08% of its industry peers.
A Quick Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
With a Quick ratio value of 0.15, PECO is not doing good in the industry: 93.08% 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 12.24% over the past year.
Measured over the past years, PECO shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.36% on average per year.
Looking at the last year, PECO shows a quite strong growth in Revenue. The Revenue has grown by 10.30% in the last year.
Measured over the past years, PECO shows a small growth in Revenue. The Revenue has been growing by 4.27% on average per year.
EPS 1Y (TTM)12.24%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.05%
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 19.90% yearly.
The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y24.95%
EPS Next 2Y18.93%
EPS Next 3Y19.9%
EPS Next 5YN/A
Revenue Next Year10.24%
Revenue Next 2Y7.79%
Revenue Next 3Y6.79%
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
The Price/Earnings ratio is 64.73, which means the current valuation is very expensive for PECO.
PECO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PECO to the average of the S&P500 Index (27.30), we can say PECO is valued expensively.
With a Price/Forward Earnings ratio of 50.34, PECO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as PECO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, PECO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.73 | ||
| Fwd PE | 50.34 |
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 77.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.77 | ||
| EV/EBITDA | 15.32 |
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 19.90% in the coming years.
PEG (NY)2.59
PEG (5Y)N/A
EPS Next 2Y18.93%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, PECO has a reasonable but not impressive dividend return.
PECO's Dividend Yield is slightly below the industry average, which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.38, PECO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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 2Y18.93%
EPS Next 3Y19.9%
35.6
-0.36 (-1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.52%
Inst Owner Change2.43%
Ins Owners0.53%
Ins Owner Change3.86%
Market Cap4.47B
Analysts75.56
Price Target40.09 (12.61%)
Short Float %3.07%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)0.26%
PT rev (3m)-0.92%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)8.82%
EPS NY rev (1m)3.23%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.73 | ||
| Fwd PE | 50.34 | ||
| P/S | 6.44 | ||
| P/FCF | 19.77 | ||
| P/OCF | 12.78 | ||
| P/B | 1.95 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 15.32 |
EPS(TTM)0.55
EY1.54%
EPS(NY)0.71
Fwd EY1.99%
FCF(TTM)1.8
FCFY5.06%
OCF(TTM)2.78
OCFY7.82%
SpS5.53
BVpS18.23
TBVpS17.95
PEG (NY)2.59
PEG (5Y)N/A
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%
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-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 | 0.75 |
F-Score6
WACC6.89%
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)12.24%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y24.95%
EPS Next 2Y18.93%
EPS Next 3Y19.9%
EPS Next 5YN/A
Revenue 1Y (TTM)10.3%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.05%
Revenue Next Year10.24%
Revenue Next 2Y7.79%
Revenue Next 3Y6.79%
Revenue Next 5YN/A
EBIT growth 1Y8.97%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year172.64%
EBIT Next 3Y45.39%
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%