EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
NYSE:DEA - New York Stock Exchange, Inc. - US27616P1030 - REIT - Currency: USD
Overall DEA gets a fundamental rating of 4 out of 10. We evaluated DEA against 129 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.
In the past year DEA had a positive cash flow from operations.
DEA had positive earnings in each of the past 5 years.
Each year in the past 5 years DEA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.58%, DEA perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
DEA has a Return On Equity (1.37%) which is in line with its industry peers.
DEA's Return On Invested Capital of 1.97% is on the low side compared to the rest of the industry. DEA is outperformed by 70.63% of its industry peers.
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 3.11%.
| 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
Looking at the Profit Margin, with a value of 6.06%, DEA is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of DEA has grown nicely.
The Operating Margin of DEA (25.11%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DEA has grown nicely.
Looking at the Gross Margin, with a value of 66.01%, DEA is in line with its industry, outperforming 42.06% of the companies in the same industry.
In the last couple of years the Gross Margin of DEA has declined.
| 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.
DEA has more shares outstanding than it did 5 years ago.
DEA has a worse debt/assets ratio than last year.
2.2 Solvency
DEA has an Altman-Z score of 0.32. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
DEA's Altman-Z score of 0.32 is on the low side compared to the rest of the industry. DEA is outperformed by 65.08% of its industry peers.
DEA has a debt to FCF ratio of 46.93. This is a negative value and a sign of low solvency as DEA would need 46.93 years to pay back of all of its debts.
The Debt to FCF ratio of DEA (46.93) is comparable to the rest of the industry.
DEA has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.12, DEA perfoms like the industry average, outperforming 51.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 46.93 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.3
WACC6.46%
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.
DEA has a Current ratio of 1.23. This is comparable to the rest of the industry: DEA outperforms 53.97% of its industry peers.
DEA has a Quick 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 Quick ratio value of 1.23, DEA perfoms like the industry average, outperforming 56.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for DEA have decreased strongly by -45.45% in the last year.
DEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.55% yearly.
Looking at the last year, DEA shows a small growth in Revenue. The Revenue has grown by 2.89% in the last year.
DEA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.33% yearly.
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.
The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y16.95%
EPS Next 2Y12.95%
EPS Next 3Y27.51%
EPS Next 5YN/A
Revenue Next Year4.47%
Revenue Next 2Y6.67%
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.
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
A Price/Earnings ratio of 59.94 indicates a quite expensive valuation of DEA.
DEA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. DEA is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 44.51, which means the current valuation is very expensive for DEA.
Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, DEA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.94 | ||
| Fwd PE | 44.51 |
4.2 Price Multiples
DEA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DEA is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.29 | ||
| EV/EBITDA | 15.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as DEA's earnings are expected to grow with 27.51% in the coming years.
PEG (NY)3.54
PEG (5Y)5.19
EPS Next 2Y12.95%
EPS Next 3Y27.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.90%, DEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 18.48, DEA pays a better dividend. On top of this DEA pays more dividend than 88.10% 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 | 9.9% |
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.
DEA has decreased its dividend recently.
Dividend Growth(5Y)-1.28%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DEA pays out 640.24% of its income as dividend. This is not a sustainable payout ratio.
DP640.24%
EPS Next 2Y12.95%
EPS Next 3Y27.51%
10.79
+0.1 (+0.94%)
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 Change4.92%
Ins Owners6.54%
Ins Owner Change0.1%
Market Cap1.14B
Analysts50.77
Price Target12.85 (19.09%)
Short Float %5.22%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.9% |
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)-4.3%
PT rev (3m)-7.81%
EPS NQ rev (1m)28.57%
EPS NQ rev (3m)50%
EPS NY rev (1m)7.32%
EPS NY rev (3m)12.82%
Revenue NQ rev (1m)2.16%
Revenue NQ rev (3m)3%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.94 | ||
| Fwd PE | 44.51 | ||
| P/S | 3.85 | ||
| P/FCF | 36.29 | ||
| P/OCF | 7.32 | ||
| P/B | 0.87 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 15.18 |
EPS(TTM)0.18
EY1.67%
EPS(NY)0.24
Fwd EY2.25%
FCF(TTM)0.3
FCFY2.76%
OCF(TTM)1.47
OCFY13.65%
SpS2.81
BVpS12.45
TBVpS11.06
PEG (NY)3.54
PEG (5Y)5.19
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 | 0.32 |
F-Score4
WACC6.46%
ROIC/WACC0.3
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 Y16.95%
EPS Next 2Y12.95%
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 Year4.47%
Revenue Next 2Y6.67%
Revenue Next 3Y7.48%
Revenue Next 5Y6.98%
EBIT growth 1Y12.97%
EBIT growth 3Y6.41%
EBIT growth 5Y16.3%
EBIT Next Year176.67%
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%