PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
NASDAQ:PECO - Nasdaq - US71844V2016 - REIT - Currency: USD
Taking everything into account, PECO scores 4 out of 10 in our fundamental rating. PECO was compared to 130 industry peers in the Diversified REITs industry. PECO has a medium profitability rating, but doesn't score so well on its financial health evaluation. PECO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PECO had positive earnings in the past year.
PECO had a positive operating cash flow in the past year.
PECO had positive earnings in each of the past 5 years.
PECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PECO's Return On Assets of 1.31% is in line compared to the rest of the industry. PECO outperforms 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 3.01%, PECO is in line with its industry, outperforming 56.92% of the companies in the same industry.
PECO has a Return On Invested Capital (2.76%) which is in line with its industry peers.
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 3.08%.
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 58.46% 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 (25.85%) which is in line with its industry peers.
PECO's Operating Margin has improved in the last couple of years.
PECO has a better Gross Margin (71.26%) than 65.38% 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 | 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.
Compared to 1 year ago, PECO has more shares outstanding
Compared to 5 years ago, PECO has more shares outstanding
Compared to 1 year ago, PECO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.72, 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 0.72, 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.
PECO has a Debt to FCF ratio of 10.58. This is amongst the best in the industry. PECO outperforms 90.00% of its industry peers.
PECO has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
PECO has a Debt to Equity ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.4
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
With a Current ratio value of 0.15, PECO is not doing good in the industry: 93.85% of the companies in the same industry are doing better.
A Quick Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
PECO's Quick ratio of 0.15 is on the low side compared to the rest of the industry. PECO is outperformed by 93.85% 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 12.24%, which is quite good.
PECO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.36% yearly.
The Revenue has grown by 10.30% in the past year. This is quite good.
PECO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
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
Based on estimates for the next years, PECO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.53% on average per year.
The Revenue is expected to grow by 7.30% on average over the next years.
EPS Next Y21.04%
EPS Next 2Y13.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year9.35%
Revenue Next 2Y7.67%
Revenue Next 3Y7.3%
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
The Price/Earnings ratio is 61.29, which means the current valuation is very expensive for PECO.
Compared to the rest of the industry, the Price/Earnings ratio of PECO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PECO to the average of the S&P500 Index (27.11), we can say PECO is valued expensively.
With a Price/Forward Earnings ratio of 52.29, PECO can be considered very expensive at the moment.
PECO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.78, PECO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.29 | ||
| Fwd PE | 52.29 |
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 76.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 14.89 |
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.
PEG (NY)2.91
PEG (5Y)N/A
EPS Next 2Y13.55%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.66%.
Compared to an average industry Dividend Yield of 6.35, PECO is paying slightly less dividend.
PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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 2Y13.55%
EPS Next 3Y11.53%
NASDAQ:PECO (8/14/2025, 11:35:06 AM)
33.71
-0.36 (-1.06%)
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 Change-0.65%
Ins Owners0.53%
Ins Owner Change4.21%
Market Cap4.23B
Analysts75.56
Price Target39.98 (18.6%)
Short Float %3.29%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)-1.18%
PT rev (3m)-1.18%
EPS NQ rev (1m)25.63%
EPS NQ rev (3m)11.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.29 | ||
| Fwd PE | 52.29 | ||
| P/S | 6.1 | ||
| P/FCF | 18.72 | ||
| P/OCF | 12.1 | ||
| P/B | 1.85 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)0.55
EY1.63%
EPS(NY)0.64
Fwd EY1.91%
FCF(TTM)1.8
FCFY5.34%
OCF(TTM)2.78
OCFY8.26%
SpS5.53
BVpS18.23
TBVpS17.95
PEG (NY)2.91
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 | 0.72 |
F-Score6
WACC6.99%
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 Y21.04%
EPS Next 2Y13.55%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue 1Y (TTM)10.3%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.05%
Revenue Next Year9.35%
Revenue Next 2Y7.67%
Revenue Next 3Y7.3%
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%