EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
NYSE:DEA - New York Stock Exchange, Inc. - US27616P1030 - REIT
DEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While DEA is still in line with the averages on profitability rating, there are concerns on its financial health. DEA is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years DEA always reported a positive cash flow from operatings.
1.2 Ratios
DEA has a Return On Assets (0.58%) which is comparable to the rest of the industry.
With a Return On Equity value of 1.37%, DEA perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.97%, DEA is doing worse than 69.29% of the companies in the same industry.
DEA had an Average Return On Invested Capital over the past 3 years of 2.01%. This is in line with the industry average of 3.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.37% | ||
| ROIC | 1.97% |
ROA(3y)0.92%
ROA(5y)0.71%
ROE(3y)2.06%
ROE(5y)1.57%
ROIC(3y)2.01%
ROIC(5y)1.84%
1.3 Margins
DEA has a Profit Margin of 6.06%. This is comparable to the rest of the industry: DEA outperforms 55.91% of its industry peers.
In the last couple of years the Profit Margin of DEA has grown nicely.
DEA has a Operating Margin (25.11%) which is comparable to the rest of the industry.
DEA's Operating Margin has improved in the last couple of years.
The Gross Margin of DEA (66.01%) is comparable to the rest of the industry.
DEA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.11% | ||
| PM (TTM) | 6.06% | ||
| GM | 66.01% |
OM growth 3Y0.93%
OM growth 5Y3.54%
PM growth 3Y9.91%
PM growth 5Y17.22%
GM growth 3Y-2.38%
GM growth 5Y-1.67%
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 0.35, we must say that DEA is in the distress zone and has some risk of bankruptcy.
DEA has a Altman-Z score of 0.35. This is in the lower half of the industry: DEA underperforms 64.57% of its industry peers.
The Debt to FCF ratio of DEA is 46.93, which is on the high side as it means it would take DEA, 46.93 years of fcf income to pay off all of its debts.
DEA has a Debt to FCF ratio (46.93) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that DEA has dependencies on debt financing.
DEA has a Debt to Equity ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 46.93 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.33
WACC6.03%
2.3 Liquidity
DEA has a Current Ratio of 1.23. This is a normal value and indicates that DEA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.23, DEA perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that DEA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.23, DEA perfoms like the industry average, outperforming 52.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.45%.
DEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.55% yearly.
DEA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.89%.
Measured over the past years, DEA shows a quite strong growth in Revenue. The Revenue has been growing by 12.33% on average per year.
EPS 1Y (TTM)-45.45%
EPS 3Y8.2%
EPS 5Y11.55%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)2.89%
Revenue growth 3Y5.43%
Revenue growth 5Y12.33%
Sales Q2Q%3.84%
3.2 Future
Based on estimates for the next years, DEA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.51% on average per year.
Based on estimates for the next years, DEA will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y8.97%
EPS Next 2Y17.56%
EPS Next 3Y27.51%
EPS Next 5YN/A
Revenue Next Year4.61%
Revenue Next 2Y7.16%
Revenue Next 3Y7.48%
Revenue Next 5Y6.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 64.00 indicates a quite expensive valuation of DEA.
DEA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.96, DEA is valued quite expensively.
With a Price/Forward Earnings ratio of 43.87, DEA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than the industry average as 65.35% of the companies are valued more expensively.
DEA is valuated expensively when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64 | ||
| Fwd PE | 43.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DEA.
DEA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.74 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DEA's earnings are expected to grow with 27.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.13
PEG (5Y)5.54
EPS Next 2Y17.56%
EPS Next 3Y27.51%
5. Dividend
5.1 Amount
DEA has a Yearly Dividend Yield of 9.22%, which is a nice return.
In the last 3 months the price of DEA has falen by -20.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 15.16, DEA pays a better dividend. On top of this DEA pays more dividend than 87.40% 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.22% |
5.2 History
The dividend of DEA decreases each year by -1.28%.
DEA has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DEA decreased recently.
Dividend Growth(5Y)-1.28%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
640.24% of the earnings are spent on dividend by DEA. This is not a sustainable payout ratio.
DP640.24%
EPS Next 2Y17.56%
EPS Next 3Y27.51%
EASTERLY GOVERNMENT PROPERTI
NYSE:DEA (1/17/2025, 8:04:00 PM)
After market: 11.5999 +0.08 (+0.69%)11.52
+0.02 (+0.17%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners78.58%
Inst Owner Change-0.01%
Ins Owners6.54%
Ins Owner Change0.1%
Market Cap1.22B
Analysts54.29
Price Target13.43 (16.58%)
Short Float %5.3%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.22% |
Yearly Dividend1.17
Dividend Growth(5Y)-1.28%
DP640.24%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.89%
Min EPS beat(2)-20.79%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-17.71%
Min EPS beat(4)-39.07%
Max EPS beat(4)-0.99%
EPS beat(8)2
Avg EPS beat(8)24.14%
EPS beat(12)2
Avg EPS beat(12)4.01%
EPS beat(16)3
Avg EPS beat(16)-0.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)-0.15%
Revenue beat(4)0
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-0.15%
Revenue beat(8)2
Avg Revenue beat(8)-1.05%
Revenue beat(12)2
Avg Revenue beat(12)-1.61%
Revenue beat(16)4
Avg Revenue beat(16)-1.36%
PT rev (1m)-3.66%
PT rev (3m)-1.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)7.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64 | ||
| Fwd PE | 43.87 | ||
| P/S | 4.11 | ||
| P/FCF | 38.74 | ||
| P/OCF | 7.82 | ||
| P/B | 0.93 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)0.18
EY1.56%
EPS(NY)0.26
Fwd EY2.28%
FCF(TTM)0.3
FCFY2.58%
OCF(TTM)1.47
OCFY12.79%
SpS2.81
BVpS12.45
TBVpS11.06
PEG (NY)7.13
PEG (5Y)5.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.37% | ||
| ROCE | 2.49% | ||
| ROIC | 1.97% | ||
| ROICexc | 1.99% | ||
| ROICexgc | 2.09% | ||
| OM | 25.11% | ||
| PM (TTM) | 6.06% | ||
| GM | 66.01% | ||
| FCFM | 10.6% |
ROA(3y)0.92%
ROA(5y)0.71%
ROE(3y)2.06%
ROE(5y)1.57%
ROIC(3y)2.01%
ROIC(5y)1.84%
ROICexc(3y)2.02%
ROICexc(5y)1.84%
ROICexgc(3y)2.15%
ROICexgc(5y)1.97%
ROCE(3y)2.55%
ROCE(5y)2.33%
ROICexcg growth 3Y0.68%
ROICexcg growth 5Y5.74%
ROICexc growth 3Y1.21%
ROICexc growth 5Y6.75%
OM growth 3Y0.93%
OM growth 5Y3.54%
PM growth 3Y9.91%
PM growth 5Y17.22%
GM growth 3Y-2.38%
GM growth 5Y-1.67%
F-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 46.93 | ||
| Debt/EBITDA | 8.7 | ||
| Cap/Depr | 130.68% | ||
| Cap/Sales | 41.91% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 91.83% | ||
| Profit Quality | 174.99% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 0.35 |
F-Score4
WACC6.03%
ROIC/WACC0.33
Cap/Depr(3y)37.42%
Cap/Depr(5y)50.13%
Cap/Sales(3y)12.22%
Cap/Sales(5y)18.43%
Profit Quality(3y)329.7%
Profit Quality(5y)551.61%
High Growth Momentum
Growth
EPS 1Y (TTM)-45.45%
EPS 3Y8.2%
EPS 5Y11.55%
EPS Q2Q%-16.67%
EPS Next Y8.97%
EPS Next 2Y17.56%
EPS Next 3Y27.51%
EPS Next 5YN/A
Revenue 1Y (TTM)2.89%
Revenue growth 3Y5.43%
Revenue growth 5Y12.33%
Sales Q2Q%3.84%
Revenue Next Year4.61%
Revenue Next 2Y7.16%
Revenue Next 3Y7.48%
Revenue Next 5Y6.98%
EBIT growth 1Y12.97%
EBIT growth 3Y6.41%
EBIT growth 5Y16.3%
EBIT Next Year172.94%
EBIT Next 3Y48.88%
EBIT Next 5YN/A
FCF growth 1Y-67.9%
FCF growth 3Y-6.64%
FCF growth 5YN/A
OCF growth 1Y21.99%
OCF growth 3Y-7.62%
OCF growth 5Y12.76%