PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
USA - NASDAQ:PECO - US71844V2016 - REIT
34.79 USD
+0.52 (+1.52%)
34.79 USD
0 (0%)
Overall PECO gets a fundamental rating of 5 out of 10. We evaluated PECO against 128 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
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
PECO has a Return On Assets (1.56%) which is comparable to the rest of the industry.
PECO's Return On Equity of 3.60% is fine compared to the rest of the industry. PECO outperforms 61.72% of its industry peers.
PECO has a Return On Invested Capital (2.98%) which is comparable to the rest of the 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 3.04%.
The 3 year average ROIC (2.51%) for PECO is below the current ROIC(2.98%), indicating increased profibility in the last year.
| 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
The Profit Margin of PECO (11.51%) is better than 60.94% of its industry peers.
PECO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.10%, PECO is in line with its industry, outperforming 59.38% of the companies in the same industry.
In the last couple of years the Operating Margin of PECO has grown nicely.
With a decent Gross Margin value of 71.20%, PECO is doing good in the industry, outperforming 64.06% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PECO is destroying value.
PECO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PECO has been increased compared to 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 0.72, we must say that PECO is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.72, PECO is doing good in the industry, outperforming 65.63% of the companies in the same industry.
The Debt to FCF ratio of PECO is 11.87, which is on the high side as it means it would take PECO, 11.87 years of fcf income to pay off all of its debts.
PECO's Debt to FCF ratio of 11.87 is amongst the best of the industry. PECO outperforms 88.28% of its industry peers.
PECO has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
PECO has a Debt to Equity ratio of 1.05. This is in the better half of the industry: PECO outperforms 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.43
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.19 indicates that PECO may have some problems paying its short term obligations.
PECO has a Current ratio of 0.19. This is amonst the worse of the industry: PECO underperforms 92.19% of its industry peers.
A Quick Ratio of 0.14 indicates that PECO may have some problems paying its short term obligations.
PECO has a worse Quick ratio (0.14) than 93.75% 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.
PECO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
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 19.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y21.72%
EPS Next 2Y21.61%
EPS Next 3Y19.67%
EPS Next 5YN/A
Revenue Next Year10.19%
Revenue Next 2Y7.42%
Revenue Next 3Y5.77%
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 52.71, 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.
PECO is valuated expensively when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 47.05, PECO can be considered very expensive at the moment.
PECO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.98. PECO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.71 | ||
| Fwd PE | 47.05 |
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 74.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.75 | ||
| EV/EBITDA | 14.59 |
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.
PECO's earnings are expected to grow with 19.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y21.61%
EPS Next 3Y19.67%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 6.49, PECO is paying slightly less dividend.
PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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 2Y21.61%
EPS Next 3Y19.67%
34.79
+0.52 (+1.52%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.11%
Inst Owner Change-0.7%
Ins Owners0.53%
Ins Owner Change0%
Market Cap4.37B
Revenue(TTM)711.78M
Net Income(TTM)81.92M
Analysts76.84
Price Target40.06 (15.15%)
Short Float %3.11%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)-0.07%
PT rev (3m)0.19%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.71 | ||
| Fwd PE | 47.05 | ||
| P/S | 6.14 | ||
| P/FCF | 21.75 | ||
| P/OCF | 13 | ||
| P/B | 1.92 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 14.59 |
EPS(TTM)0.66
EY1.9%
EPS(NY)0.74
Fwd EY2.13%
FCF(TTM)1.6
FCFY4.6%
OCF(TTM)2.68
OCFY7.69%
SpS5.67
BVpS18.14
TBVpS17.85
PEG (NY)2.43
PEG (5Y)N/A
Graham Number16.41
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 | 0.72 |
F-Score6
WACC6.9%
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 Y21.72%
EPS Next 2Y21.61%
EPS Next 3Y19.67%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
Revenue Next Year10.19%
Revenue Next 2Y7.42%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
EBIT growth 1Y16.78%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year173.11%
EBIT Next 3Y45.4%
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 5 / 10 to PECO.
What is the valuation status of PHILLIPS EDISON & COMPANY IN (PECO) stock?
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 7 / 10.
What is the valuation of PHILLIPS EDISON & COMPANY IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PHILLIPS EDISON & COMPANY IN (PECO) is 52.71 and the Price/Book (PB) ratio is 1.92.
What is the earnings growth outlook for PHILLIPS EDISON & COMPANY IN?
The Earnings per Share (EPS) of PHILLIPS EDISON & COMPANY IN (PECO) is expected to grow by 21.72% in the next year.