34.82 USD
-0.55 (-1.55%)
34.82 USD
0 (0%)
PECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 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
PECO had positive earnings in the past year.
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
The Return On Assets of PECO (1.56%) is comparable to the rest of the industry.
PECO has a Return On Equity (3.60%) which is in line with its industry peers.
PECO has a Return On Invested Capital (2.98%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PECO is in line with the industry average of 3.06%.
The last Return On Invested Capital (2.98%) for PECO is above the 3 year average (2.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 3.6% | ||
| ROIC | 2.98% |
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 11.51% is in line compared to the rest of the industry. PECO outperforms 57.48% of its industry peers.
In the last couple of years the Profit Margin of PECO has grown nicely.
PECO has a Operating Margin (27.10%) which is in line with its industry peers.
PECO's Operating Margin has improved in the last couple of years.
PECO's Gross Margin of 71.20% is fine compared to the rest of the industry. PECO outperforms 63.78% of its industry peers.
PECO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.1% | ||
| PM (TTM) | 11.51% | ||
| GM | 71.2% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PECO is destroying value.
Compared to 1 year ago, PECO has more shares outstanding
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 0.75, we must say that PECO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PECO (0.75) is better than 64.57% of its industry peers.
PECO has a debt to FCF ratio of 11.87. This is a negative value and a sign of low solvency as PECO would need 11.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.87, PECO belongs to the top of the industry, outperforming 88.19% of the companies in the same industry.
PECO has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
PECO's Debt to Equity ratio of 1.05 is in line compared to the rest of the industry. PECO outperforms 59.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.43
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.19 indicates that PECO may have some problems paying its short term obligations.
The Current ratio of PECO (0.19) is worse than 91.34% of its industry peers.
PECO has a Quick Ratio of 0.19. This is a bad value and indicates that PECO is not financially healthy enough and could expect problems in meeting its short term obligations.
PECO has a worse Quick ratio (0.14) than 93.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.48% 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 10.73% in the last year.
PECO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
EPS 1Y (TTM)43.48%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%122.22%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
3.2 Future
The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
Based on estimates for the next years, PECO will show a small growth in Revenue. The Revenue will grow by 6.23% on average per year.
EPS Next Y20.02%
EPS Next 2Y15.59%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue Next Year10.7%
Revenue Next 2Y7.98%
Revenue Next 3Y6.23%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 52.76, which means the current valuation is very expensive for PECO.
PECO's Price/Earnings is on the same level as the industry average.
PECO is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 52.12, the valuation of PECO can be described as expensive.
Based on the Price/Forward Earnings ratio, PECO is valued a bit cheaper than the industry average as 60.63% of the companies are valued more expensively.
PECO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.76 | ||
| Fwd PE | 52.12 |
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 74.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.8 | ||
| EV/EBITDA | 14.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PECO may justify a higher PE ratio.
A more expensive valuation may be justified as PECO's earnings are expected to grow with 15.23% in the coming years.
PEG (NY)2.64
PEG (5Y)N/A
EPS Next 2Y15.59%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, PECO has a reasonable but not impressive dividend return.
PECO's Dividend Yield is slightly below the industry average, which is at 6.85.
Compared to an average S&P500 Dividend Yield of 1.90, PECO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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 189.57% of its income as dividend. This is not a sustainable payout ratio.
DP189.57%
EPS Next 2Y15.59%
EPS Next 3Y15.23%
34.82
-0.55 (-1.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners87.42%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change0%
Market Cap4.38B
Revenue(TTM)711.78M
Net Income(TTM)81.92M
Analysts76.84
Price Target40.43 (16.11%)
Short Float %2.07%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend1.08
Dividend Growth(5Y)-3.54%
DP189.57%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.85%
Min EPS beat(2)-25.54%
Max EPS beat(2)45.24%
EPS beat(4)3
Avg EPS beat(4)20.23%
Min EPS beat(4)-25.54%
Max EPS beat(4)45.24%
EPS beat(8)5
Avg EPS beat(8)5%
EPS beat(12)9
Avg EPS beat(12)11.07%
EPS beat(16)12
Avg EPS beat(16)-55.55%
Revenue beat(2)2
Avg Revenue beat(2)0.73%
Min Revenue beat(2)0.29%
Max Revenue beat(2)1.17%
Revenue beat(4)4
Avg Revenue beat(4)1.25%
Min Revenue beat(4)0.29%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)8
Avg Revenue beat(12)0.55%
Revenue beat(16)12
Avg Revenue beat(16)1.1%
PT rev (1m)0.93%
PT rev (3m)0.86%
EPS NQ rev (1m)3.53%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.76 | ||
| Fwd PE | 52.12 | ||
| P/S | 6.15 | ||
| P/FCF | 21.8 | ||
| P/OCF | 13.03 | ||
| P/B | 1.92 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 14.91 |
EPS(TTM)0.66
EY1.9%
EPS(NY)0.67
Fwd EY1.92%
FCF(TTM)1.6
FCFY4.59%
OCF(TTM)2.67
OCFY7.67%
SpS5.66
BVpS18.11
TBVpS17.82
PEG (NY)2.64
PEG (5Y)N/A
Graham Number16.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 3.6% | ||
| ROCE | 3.78% | ||
| ROIC | 2.98% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.03% | ||
| OM | 27.1% | ||
| PM (TTM) | 11.51% | ||
| GM | 71.2% | ||
| FCFM | 28.23% |
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 Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Debt/EBITDA | 5.21 | ||
| Cap/Depr | 50.92% | ||
| Cap/Sales | 18.99% | ||
| Interest Coverage | 1.95 | ||
| Cash Conversion | 73.34% | ||
| Profit Quality | 245.29% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.75 |
F-Score6
WACC6.94%
ROIC/WACC0.43
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)43.48%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%122.22%
EPS Next Y20.02%
EPS Next 2Y15.59%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
Revenue Next Year10.7%
Revenue Next 2Y7.98%
Revenue Next 3Y6.23%
Revenue Next 5YN/A
EBIT growth 1Y16.78%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year175.5%
EBIT Next 3Y46.22%
EBIT Next 5YN/A
FCF growth 1Y13.78%
FCF growth 3Y8.44%
FCF growth 5Y12.26%
OCF growth 1Y19.56%
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.
Can you provide the valuation status for PHILLIPS EDISON & COMPANY IN?
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 financial health of PHILLIPS EDISON & COMPANY IN (PECO) stock?
The financial health rating of PHILLIPS EDISON & COMPANY IN (PECO) is 2 / 10.
Can you provide the expected EPS growth for PECO stock?
The Earnings per Share (EPS) of PHILLIPS EDISON & COMPANY IN (PECO) is expected to grow by 20.02% in the next year.