EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEA - US27616P3010 - REIT
23.31 USD
-0.04 (-0.17%)
We assign a fundamental rating of 4 out of 10 to DEA. DEA was compared to 125 industry peers in the Diversified REITs industry. DEA has a medium profitability rating, but doesn't score so well on its financial health evaluation. DEA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DEA was profitable.
- In the past year DEA had a positive cash flow from operations.
- In the past 5 years DEA has always been profitable.
- DEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DEA has a Return On Assets (0.39%) which is comparable to the rest of the industry.
- The Return On Equity of DEA (0.99%) is comparable to the rest of the industry.
- DEA has a Return On Invested Capital of 2.06%. This is in the lower half of the industry: DEA underperforms 62.40% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DEA is in line with the industry average of 3.07%.
- The 3 year average ROIC (1.98%) for DEA is below the current ROIC(2.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 0.99% | ||
| ROIC | 2.06% |
ROA(3y)0.77%
ROA(5y)0.77%
ROE(3y)1.77%
ROE(5y)1.72%
ROIC(3y)1.98%
ROIC(5y)1.97%
1.3 Margins
- Looking at the Profit Margin, with a value of 4.05%, DEA is in line with its industry, outperforming 47.20% of the companies in the same industry.
- In the last couple of years the Profit Margin of DEA has grown nicely.
- Looking at the Operating Margin, with a value of 25.94%, DEA is in line with its industry, outperforming 57.60% of the companies in the same industry.
- DEA's Operating Margin has improved in the last couple of years.
- DEA has a Gross Margin of 66.83%. This is comparable to the rest of the industry: DEA outperforms 47.20% of its industry peers.
- DEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.94% | ||
| PM (TTM) | 4.05% | ||
| GM | 66.83% |
OM growth 3Y-0.6%
OM growth 5Y9.25%
PM growth 3Y-16.41%
PM growth 5Y14.45%
GM growth 3Y-0.86%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DEA is destroying value.
- DEA has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DEA has more shares outstanding
- The debt/assets ratio for DEA is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.22, we must say that DEA is in the distress zone and has some risk of bankruptcy.
- DEA has a Altman-Z score of 0.22. This is in the lower half of the industry: DEA underperforms 66.40% of its industry peers.
- The Debt to FCF ratio of DEA is 14.11, which is on the high side as it means it would take DEA, 14.11 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 14.11, DEA belongs to the top of the industry, outperforming 85.60% of the companies in the same industry.
- A Debt/Equity ratio of 1.23 is on the high side and indicates that DEA has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.23, DEA perfoms like the industry average, outperforming 53.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.11 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.33
WACC6.22%
2.3 Liquidity
- DEA has a Current Ratio of 0.58. This is a bad value and indicates that DEA is not financially healthy enough and could expect problems in meeting its short term obligations.
- DEA has a worse Current ratio (0.58) than 76.80% of its industry peers.
- A Quick Ratio of 0.58 indicates that DEA may have some problems paying its short term obligations.
- DEA's Quick ratio of 0.58 is on the low side compared to the rest of the industry. DEA is outperformed by 76.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.22%.
- Measured over the past years, DEA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.70% on average per year.
- Looking at the last year, DEA shows a quite strong growth in Revenue. The Revenue has grown by 10.42% in the last year.
- DEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.38% yearly.
EPS 1Y (TTM)-32.22%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-84%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%15.2%
3.2 Future
- The Earnings Per Share is expected to grow by 11.23% on average over the next years. This is quite good.
- DEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y-38.34%
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
EPS Next 5Y11.23%
Revenue Next Year10.76%
Revenue Next 2Y9.83%
Revenue Next 3Y8.36%
Revenue Next 5Y7.62%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 75.19 indicates a quite expensive valuation of DEA.
- DEA's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.30. DEA is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 50.17, DEA can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than 63.20% of the companies in the same industry.
- DEA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.19 | ||
| Fwd PE | 50.17 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEA is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEA indicates a rather cheap valuation: DEA is cheaper than 92.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 14.03 |
4.3 Compensation for Growth
- DEA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.49
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.87%, DEA is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.59, DEA pays a better dividend. On top of this DEA pays more dividend than 82.40% of the companies listed in the same industry.
- DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.87% |
5.2 History
- On average, the dividend of DEA grows each year by 18.09%, which is quite nice.
- DEA has been paying a dividend for at least 10 years, so it has a reliable track record.
- DEA has decreased its dividend recently.
Dividend Growth(5Y)18.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 776.70% of the earnings are spent on dividend by DEA. This is not a sustainable payout ratio.
- DEA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP776.7%
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
EASTERLY GOVERNMENT PROPERTI / DEA FAQ
What is the fundamental rating for DEA stock?
ChartMill assigns a fundamental rating of 4 / 10 to DEA.
Can you provide the valuation status for EASTERLY GOVERNMENT PROPERTI?
ChartMill assigns a valuation rating of 3 / 10 to EASTERLY GOVERNMENT PROPERTI (DEA). This can be considered as Overvalued.
How profitable is EASTERLY GOVERNMENT PROPERTI (DEA) stock?
EASTERLY GOVERNMENT PROPERTI (DEA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for DEA stock?
The Price/Earnings (PE) ratio for EASTERLY GOVERNMENT PROPERTI (DEA) is 75.19 and the Price/Book (PB) ratio is 0.81.
What is the expected EPS growth for EASTERLY GOVERNMENT PROPERTI (DEA) stock?
The Earnings per Share (EPS) of EASTERLY GOVERNMENT PROPERTI (DEA) is expected to decline by -38.34% in the next year.