PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
NASDAQ:PECO - Nasdaq - US71844V2016 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to PECO. PECO was compared to 129 industry peers in the Diversified REITs industry. PECO scores excellent on profitability, but 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.
PECO had a positive operating cash flow in the past year.
In the past 5 years PECO has always been profitable.
In the past 5 years PECO always reported a positive cash flow from operatings.
1.2 Ratios
PECO has a better Return On Assets (1.38%) than 60.47% of its industry peers.
PECO has a Return On Equity of 3.09%. This is comparable 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.
Measured over the past 3 years, the Average Return On Invested Capital for PECO is in line with the industry average of 3.15%.
The 3 year average ROIC (2.51%) for PECO is below the current ROIC(2.79%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 10.51%. This is in the better half of the industry: PECO outperforms 61.24% of its industry peers.
In the last couple of years the Profit Margin of PECO has grown nicely.
PECO has a Operating Margin of 26.19%. This is comparable to the rest of the industry: PECO outperforms 57.36% of its industry peers.
In the last couple of years the Operating Margin of PECO has grown nicely.
With a decent Gross Margin value of 71.12%, PECO is doing good in the industry, outperforming 63.57% of the companies in the same industry.
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
PECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PECO has more shares outstanding than it did 1 year ago.
PECO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PECO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, 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 0.77, PECO is in the better half of the industry, outperforming 65.12% 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.
With an excellent Debt to FCF ratio value of 10.19, PECO belongs to the best 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.
The Debt to Equity ratio of PECO (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 10.19 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.39
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
PECO has a Current ratio of 0.15. This is amonst the worse of the industry: PECO underperforms 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.
Looking at the Quick ratio, with a value of 0.15, PECO is doing worse than 91.47% of the companies in the same industry.
| 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 16.33%, which is quite good.
The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
The Revenue has grown by 9.36% 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)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
PECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.74% yearly.
The Revenue is expected to grow by 8.15% on average over the next years. This is quite good.
EPS Next Y22.4%
EPS Next 2Y14.71%
EPS Next 3Y15.74%
EPS Next 5YN/A
Revenue Next Year9.62%
Revenue Next 2Y8.08%
Revenue Next 3Y8.15%
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
PECO is valuated quite expensively with a Price/Earnings ratio of 62.30.
The rest of the industry has a similar Price/Earnings ratio as PECO.
When comparing the Price/Earnings ratio of PECO to the average of the S&P500 Index (26.17), we can say PECO is valued expensively.
PECO is valuated quite expensively with a Price/Forward Earnings ratio of 53.97.
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 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.3 | ||
| Fwd PE | 53.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PECO is valued a bit more expensive than 61.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PECO indicates a somewhat cheap valuation: PECO is cheaper than 77.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.92 | ||
| EV/EBITDA | 15.23 |
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 15.74% in the coming years.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y14.71%
EPS Next 3Y15.74%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
PECO's Dividend Yield is slightly below the industry average, which is at 6.93.
Compared to an average S&P500 Dividend Yield of 2.40, PECO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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
209.73% of the earnings are spent on dividend by PECO. This is not a sustainable payout ratio.
DP209.73%
EPS Next 2Y14.71%
EPS Next 3Y15.74%
NASDAQ:PECO (5/29/2025, 2:17:04 PM)
35.51
+0.71 (+2.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners85.72%
Inst Owner Change2.26%
Ins Owners0.54%
Ins Owner Change4.52%
Market Cap4.45B
Analysts76.47
Price Target40.46 (13.94%)
Short Float %3.24%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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)-1.38%
PT rev (3m)-1.38%
EPS NQ rev (1m)-6.96%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)0.28%
EPS NY rev (3m)4.35%
Revenue NQ rev (1m)1.59%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.3 | ||
| Fwd PE | 53.97 | ||
| P/S | 6.56 | ||
| P/FCF | 19.92 | ||
| P/OCF | 13.41 | ||
| P/B | 1.93 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)0.57
EY1.61%
EPS(NY)0.66
Fwd EY1.85%
FCF(TTM)1.78
FCFY5.02%
OCF(TTM)2.65
OCFY7.46%
SpS5.41
BVpS18.43
TBVpS18.15
PEG (NY)2.78
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 | 0.77 |
F-Score5
WACC7.11%
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 Y22.4%
EPS Next 2Y14.71%
EPS Next 3Y15.74%
EPS Next 5YN/A
Revenue 1Y (TTM)9.36%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.54%
Revenue Next Year9.62%
Revenue Next 2Y8.08%
Revenue Next 3Y8.15%
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%