CAMDEN PROPERTY TRUST (CPT) Stock Fundamental Analysis
NYSE:CPT - New York Stock Exchange, Inc. - US1331311027 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to CPT. CPT was compared to 20 industry peers in the Residential REITs industry. While CPT is still in line with the averages on profitability rating, there are concerns on its financial health. CPT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CPT was profitable.
CPT had a positive operating cash flow in the past year.
CPT had positive earnings in each of the past 5 years.
Each year in the past 5 years CPT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.85%, CPT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CPT's Return On Equity of 7.26% is fine compared to the rest of the industry. CPT outperforms 70.00% of its industry peers.
CPT has a Return On Invested Capital of 2.83%. This is comparable to the rest of the industry: CPT outperforms 60.00% of its industry peers.
CPT had an Average Return On Invested Capital over the past 3 years of 2.63%. This is in line with the industry average of 2.61%.
The last Return On Invested Capital (2.83%) for CPT is above the 3 year average (2.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 7.26% | ||
| ROIC | 2.83% |
ROA(3y)5.03%
ROA(5y)4.01%
ROE(3y)9.47%
ROE(5y)7.61%
ROIC(3y)2.63%
ROIC(5y)2.68%
1.3 Margins
CPT's Profit Margin of 22.29% is fine compared to the rest of the industry. CPT outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of CPT has grown nicely.
Looking at the Operating Margin, with a value of 19.66%, CPT is in line with its industry, outperforming 55.00% of the companies in the same industry.
CPT's Operating Margin has declined in the last couple of years.
CPT's Gross Margin of 61.35% is fine compared to the rest of the industry. CPT outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of CPT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.66% | ||
| PM (TTM) | 22.29% | ||
| GM | 61.35% |
OM growth 3Y1.29%
OM growth 5Y-3.25%
PM growth 3Y30.13%
PM growth 5Y9.97%
GM growth 3Y1.45%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
CPT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CPT has been increased compared to 1 year ago.
Compared to 5 years ago, CPT has more shares outstanding
The debt/assets ratio for CPT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that CPT is not a great score, but indicates only limited risk for bankruptcy at the moment.
CPT has a Altman-Z score of 1.82. This is in the better half of the industry: CPT outperforms 80.00% of its industry peers.
The Debt to FCF ratio of CPT is 8.82, which is on the high side as it means it would take CPT, 8.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.82, CPT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that CPT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.73, CPT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 8.82 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.37
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.09 indicates that CPT may have some problems paying its short term obligations.
With a Current ratio value of 0.09, CPT is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.09 indicates that CPT may have some problems paying its short term obligations.
The Quick ratio of CPT (0.09) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
CPT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.77%, which is quite impressive.
The Earnings Per Share has been growing by 18.09% on average over the past years. This is quite good.
The Revenue for CPT has decreased by -19.04% in the past year. This is quite bad
The Revenue has been growing by 10.07% on average over the past years. This is quite good.
EPS 1Y (TTM)67.77%
EPS 3Y44.23%
EPS 5Y18.09%
EPS Q2Q%-22.73%
Revenue 1Y (TTM)-19.04%
Revenue growth 3Y13.89%
Revenue growth 5Y10.07%
Sales Q2Q%-0.91%
3.2 Future
CPT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.40% yearly.
Based on estimates for the next years, CPT will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y-46.99%
EPS Next 2Y-34.74%
EPS Next 3Y-20.4%
EPS Next 5YN/A
Revenue Next Year0.13%
Revenue Next 2Y1.09%
Revenue Next 3Y2.05%
Revenue Next 5Y4.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.12, the valuation of CPT can be described as expensive.
Based on the Price/Earnings ratio, CPT is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.46. CPT is around the same levels.
A Price/Forward Earnings ratio of 71.78 indicates a quite expensive valuation of CPT.
CPT's Price/Forward Earnings ratio is in line with the industry average.
CPT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 92.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.12 | ||
| Fwd PE | 71.78 |
4.2 Price Multiples
CPT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPT is cheaper than 85.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPT indicates a somewhat cheap valuation: CPT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31 | ||
| EV/EBITDA | 17.51 |
4.3 Compensation for Growth
The decent profitability rating of CPT may justify a higher PE ratio.
CPT's earnings are expected to decrease with -20.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y-34.74%
EPS Next 3Y-20.4%
5. Dividend
5.1 Amount
CPT has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
CPT's Dividend Yield is comparable with the industry average which is at 4.36.
CPT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of CPT has a limited annual growth rate of 5.90%.
CPT has been paying a dividend for at least 10 years, so it has a reliable track record.
CPT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.9%
Div Incr Years6
Div Non Decr Years13
5.3 Sustainability
130.05% of the earnings are spent on dividend by CPT. This is not a sustainable payout ratio.
CPT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP130.05%
EPS Next 2Y-34.74%
EPS Next 3Y-20.4%
CAMDEN PROPERTY TRUST
NYSE:CPT (1/31/2025, 7:13:35 PM)
After market: 113.71 0 (0%)113.71
+0.51 (+0.45%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change-0.11%
Ins Owners1.27%
Ins Owner Change-1.64%
Market Cap12.13B
Analysts70.71
Price Target129.39 (13.79%)
Short Float %1.61%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend4
Dividend Growth(5Y)5.9%
DP130.05%
Div Incr Years6
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5%
Min EPS beat(2)-9.02%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)122.74%
Min EPS beat(4)-9.02%
Max EPS beat(4)413.9%
EPS beat(8)6
Avg EPS beat(8)85.2%
EPS beat(12)7
Avg EPS beat(12)112.67%
EPS beat(16)7
Avg EPS beat(16)80.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-0.98%
Revenue beat(12)2
Avg Revenue beat(12)7.12%
Revenue beat(16)5
Avg Revenue beat(16)11.48%
PT rev (1m)-0.19%
PT rev (3m)0.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.12 | ||
| Fwd PE | 71.78 | ||
| P/S | 7.85 | ||
| P/FCF | 31 | ||
| P/OCF | 14.89 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 17.51 |
EPS(TTM)3.54
EY3.11%
EPS(NY)1.58
Fwd EY1.39%
FCF(TTM)3.67
FCFY3.23%
OCF(TTM)7.63
OCFY6.71%
SpS14.48
BVpS44.46
TBVpS44.46
PEG (NY)N/A
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 7.26% | ||
| ROCE | 3.58% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.84% | ||
| ROICexgc | 2.93% | ||
| OM | 19.66% | ||
| PM (TTM) | 22.29% | ||
| GM | 61.35% | ||
| FCFM | 25.32% |
ROA(3y)5.03%
ROA(5y)4.01%
ROE(3y)9.47%
ROE(5y)7.61%
ROIC(3y)2.63%
ROIC(5y)2.68%
ROICexc(3y)2.74%
ROICexc(5y)2.78%
ROICexgc(3y)2.83%
ROICexgc(5y)2.87%
ROCE(3y)3.33%
ROCE(5y)3.39%
ROICexcg growth 3Y6.55%
ROICexcg growth 5Y-0.25%
ROICexc growth 3Y6.65%
ROICexc growth 5Y-0.15%
OM growth 3Y1.29%
OM growth 5Y-3.25%
PM growth 3Y30.13%
PM growth 5Y9.97%
GM growth 3Y1.45%
GM growth 5Y0.41%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 8.82 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 72.78% | ||
| Cap/Sales | 27.39% | ||
| Interest Coverage | 2.53 | ||
| Cash Conversion | 92.01% | ||
| Profit Quality | 113.62% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 1.82 |
F-Score7
WACC7.66%
ROIC/WACC0.37
Cap/Depr(3y)83.76%
Cap/Depr(5y)97.77%
Cap/Sales(3y)31.91%
Cap/Sales(5y)35.26%
Profit Quality(3y)63.22%
Profit Quality(5y)66.33%
High Growth Momentum
Growth
EPS 1Y (TTM)67.77%
EPS 3Y44.23%
EPS 5Y18.09%
EPS Q2Q%-22.73%
EPS Next Y-46.99%
EPS Next 2Y-34.74%
EPS Next 3Y-20.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.04%
Revenue growth 3Y13.89%
Revenue growth 5Y10.07%
Sales Q2Q%-0.91%
Revenue Next Year0.13%
Revenue Next 2Y1.09%
Revenue Next 3Y2.05%
Revenue Next 5Y4.22%
EBIT growth 1Y-23.67%
EBIT growth 3Y15.37%
EBIT growth 5Y6.49%
EBIT Next Year163.07%
EBIT Next 3Y40.53%
EBIT Next 5Y27.52%
FCF growth 1Y72.8%
FCF growth 3Y60.95%
FCF growth 5Y21.59%
OCF growth 1Y13.44%
OCF growth 3Y15.25%
OCF growth 5Y9.56%