EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEA - US27616P3010 - REIT
23.2 USD
+0.06 (+0.26%)
23.2 USD
0 (0%)
Overall DEA gets a fundamental rating of 4 out of 10. We evaluated DEA against 124 industry peers in the Diversified REITs industry. There are concerns on the financial health of DEA while its profitability can be described as average. While showing a medium growth rate, DEA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year DEA was profitable.
- DEA had a positive operating cash flow in the past year.
- DEA had positive earnings in each of the past 5 years.
- DEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DEA has a Return On Assets of 0.39%. This is comparable to the rest of the industry: DEA outperforms 45.97% of its industry peers.
- DEA has a Return On Equity (0.99%) which 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 62.10% 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 3.05%.
- The last Return On Invested Capital (2.06%) for DEA is above the 3 year average (1.98%), which is a sign of increasing profitability.
| 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 47.58% of the companies in the same industry.
- In the last couple of years the Profit Margin of DEA has grown nicely.
- DEA's Operating Margin of 25.94% is in line compared to the rest of the industry. DEA outperforms 58.06% of its industry peers.
- 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 47.58% 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.
- The number of shares outstanding for DEA has been increased compared to 5 years ago.
- DEA has a worse debt/assets ratio than last year.
2.2 Solvency
- DEA has an Altman-Z score of 0.22. This is a bad value and indicates that DEA is not financially healthy and even 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 66.94% of its industry peers.
- DEA has a debt to FCF ratio of 14.11. This is a negative value and a sign of low solvency as DEA would need 14.11 years to pay back of all of its debts.
- DEA has a better Debt to FCF ratio (14.11) than 85.48% of its industry peers.
- A Debt/Equity ratio of 1.23 is on the high side and indicates that DEA has dependencies on debt financing.
- The Debt to Equity ratio of DEA (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.11 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.33
WACC6.18%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that DEA may have some problems paying its short term obligations.
- The Current ratio of DEA (0.58) is worse than 76.61% of its industry peers.
- A Quick Ratio of 0.58 indicates that DEA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.58, DEA is doing worse than 76.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The earnings per share for DEA have decreased strongly by -32.22% in the last year.
- The Earnings Per Share has been growing by 13.70% on average over the past years. This is quite good.
- Looking at the last year, DEA shows a quite strong growth in Revenue. The Revenue has grown by 10.42% in the last year.
- The Revenue has been growing slightly by 6.38% on average over the past years.
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
- Based on estimates for the next years, DEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
- The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y-38.34%
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
EPS Next 5Y11.23%
Revenue Next Year11.15%
Revenue Next 2Y9.68%
Revenue Next 3Y8.03%
Revenue Next 5Y7.62%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- DEA is valuated quite expensively with a Price/Earnings ratio of 74.84.
- DEA's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, DEA is valued quite expensively.
- The Price/Forward Earnings ratio is 49.94, which means the current valuation is very expensive for DEA.
- DEA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEA is cheaper than 62.90% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, DEA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.84 | ||
| Fwd PE | 49.94 |
4.2 Price Multiples
- DEA's Enterprise Value to EBITDA is on the same level as the industry average.
- 92.74% of the companies in the same industry are more expensive than DEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 14 |
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)5.46
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.71%, DEA is a good candidate for dividend investing.
- DEA's Dividend Yield is a higher than the industry average which is at 6.82.
- 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 | 7.71% |
5.2 History
- The dividend of DEA is nicely growing with an annual growth rate of 18.09%!
- DEA has paid a dividend for at least 10 years, which is 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 74.84 and the Price/Book (PB) ratio is 0.8.
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.