CAMDEN PROPERTY TRUST (CPT)
US1331311027 - REIT
CPT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CPT had positive earnings in the past year.
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
The Return On Assets of CPT (3.85%) is better than 70.00% of its industry peers.
The Return On Equity of CPT (7.26%) is better than 75.00% of its industry peers.
CPT has a Return On Invested Capital (2.83%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CPT 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
Looking at the Profit Margin, with a value of 22.29%, CPT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CPT has grown nicely.
With a Operating Margin value of 19.66%, CPT perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CPT has declined.
CPT has a better Gross Margin (61.35%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPT is destroying value.
CPT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CPT has been increased compared to 5 years ago.
Compared to 1 year ago, CPT has a worse debt to assets ratio.
2.2 Solvency
CPT has an Altman-Z score of 1.95. This is not the best score and indicates that CPT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.95, CPT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CPT has a debt to FCF ratio of 8.82. This is a slightly negative value and a sign of low solvency as CPT would need 8.82 years to pay back of all of its debts.
The Debt to FCF ratio of CPT (8.82) is better than 100.00% of its industry peers.
CPT has a Debt/Equity ratio of 0.73. This is a neutral value indicating CPT is somewhat dependend on debt financing.
CPT has a Debt to Equity ratio of 0.73. This is in the better half of the industry: CPT outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 8.82 | ||
| Altman-Z | 1.95 |
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.
CPT has a worse Current ratio (0.09) than 80.00% of its industry peers.
CPT has a Quick Ratio of 0.09. This is a bad value and indicates that CPT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.09, CPT is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.77% over the past year.
Measured over the past years, CPT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.09% on average per year.
The Revenue for CPT has decreased by -19.04% in the past year. This is quite bad
Measured over the past years, CPT shows a quite strong growth in Revenue. The Revenue has been growing by 10.07% on average per year.
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
The Earnings Per Share is expected to decrease by -17.84% on average over the next years. This is quite bad
The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y-47.46%
EPS Next 2Y-33.6%
EPS Next 3Y-17.84%
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y1.53%
Revenue Next 3Y2.67%
Revenue Next 5Y4.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.46, which means the current valuation is very expensive for CPT.
Compared to the rest of the industry, the Price/Earnings ratio of CPT indicates a somewhat cheap valuation: CPT is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. CPT is around the same levels.
Based on the Price/Forward Earnings ratio of 74.38, the valuation of CPT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPT is on the same level as its industry peers.
CPT is valuated expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.46 | ||
| Fwd PE | 74.38 |
4.2 Price Multiples
CPT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CPT is cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CPT is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.26 | ||
| EV/EBITDA | 18.57 |
4.3 Compensation for Growth
The decent profitability rating of CPT may justify a higher PE ratio.
A cheap valuation may be justified as CPT's earnings are expected to decrease with -17.84% in the coming years.
PEG (NY)N/A
PEG (5Y)1.91
EPS Next 2Y-33.6%
EPS Next 3Y-17.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, CPT has a reasonable but not impressive dividend return.
CPT's Dividend Yield is comparable with the industry average which is at 3.90.
Compared to an average S&P500 Dividend Yield of 2.23, CPT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of CPT has a limited annual growth rate of 5.90%.
CPT has paid a dividend for at least 10 years, which is 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-33.6%
EPS Next 3Y-17.84%
CAMDEN PROPERTY TRUST
NYSE:CPT (11/21/2024, 8:20:51 PM)
After market: 121.99 0 (0%)121.99
+1.43 (+1.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.46 | ||
| Fwd PE | 74.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 7.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.66% | ||
| PM (TTM) | 22.29% | ||
| GM | 61.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)67.77%
EPS 3Y44.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-47.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.04%
Revenue growth 3Y13.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y