EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - NYSE:DEA - US27616P3010 - REIT
21.37 USD
-0.07 (-0.33%)
21.36 USD
-0.01 (-0.05%)
DEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. There are concerns on the financial health of DEA while its profitability can be described as average. DEA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DEA had positive earnings in the past year.
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 (0.39%) which is in line with its industry peers.
DEA has a Return On Equity (0.99%) which is comparable to the rest of the industry.
DEA's Return On Invested Capital of 2.06% is on the low side compared to the rest of the industry. DEA is outperformed by 61.42% of its industry peers.
DEA had an Average Return On Invested Capital over the past 3 years of 1.98%. This is in line with the industry average of 3.09%.
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
DEA has a Profit Margin of 4.05%. This is comparable to the rest of the industry: DEA outperforms 48.82% of its industry peers.
In the last couple of years the Profit Margin of DEA has grown nicely.
Looking at the Operating Margin, with a value of 25.97%, DEA is in line with its industry, outperforming 57.48% of the companies in the same industry.
DEA's Operating Margin has improved in the last couple of years.
The Gross Margin of DEA (66.83%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DEA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.97% | ||
| 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
DEA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DEA has been increased compared to 1 year ago.
Compared to 5 years ago, DEA has more shares outstanding
Compared to 1 year ago, DEA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that DEA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.19, DEA is doing worse than 66.93% of the companies in the same industry.
DEA has a debt to FCF ratio of 14.18. This is a negative value and a sign of low solvency as DEA would need 14.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.18, DEA belongs to the top of the industry, outperforming 84.25% 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.
DEA's Debt to Equity ratio of 1.23 is in line compared to the rest of the industry. DEA outperforms 51.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.18 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.34
WACC6.06%
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 Current ratio of 0.58. This is in the lower half of the industry: DEA underperforms 76.38% of its industry peers.
DEA has a Quick 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 Quick ratio (0.58) than 76.38% 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.
Measured over the past years, DEA shows a small growth in Revenue. The Revenue has been growing by 6.38% on average per year.
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.
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-24.52%
EPS Next 2Y2.59%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue Next Year10.99%
Revenue Next 2Y9.17%
Revenue Next 3Y8.74%
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
The Price/Earnings ratio is 68.94, which means the current valuation is very expensive for DEA.
Compared to the rest of the industry, the Price/Earnings ratio of DEA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.06. DEA is valued rather expensively when compared to this.
DEA is valuated quite expensively with a Price/Forward Earnings ratio of 42.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEA indicates a somewhat cheap valuation: DEA is cheaper than 60.63% of the companies listed in the same industry.
DEA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.94 | ||
| Fwd PE | 42.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEA is valued a bit cheaper than 60.63% of the companies in the same industry.
94.49% 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 | 8.39 | ||
| EV/EBITDA | 13.43 |
4.3 Compensation for Growth
DEA has a very decent profitability rating, which may justify a higher PE ratio.
DEA's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)5.03
EPS Next 2Y2.59%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
DEA has a Yearly Dividend Yield of 8.40%, which is a nice return.
Compared to an average industry Dividend Yield of 6.31, DEA pays a better dividend. On top of this DEA pays more dividend than 81.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, DEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
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
DEA pays out 773.12% of its income as dividend. This is not a sustainable payout ratio.
The dividend of DEA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP773.12%
EPS Next 2Y2.59%
EPS Next 3Y12.52%
21.37
-0.07 (-0.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners74.61%
Inst Owner Change-2.31%
Ins Owners6.03%
Ins Owner Change0.35%
Market Cap969.13M
Revenue(TTM)327.31M
Net Income(TTM)13.25M
Analysts52.86
Price Target24.05 (12.54%)
Short Float %4.23%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP773.12%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.26%
Min EPS beat(2)-82.78%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-49.52%
Min EPS beat(4)-82.78%
Max EPS beat(4)-25.74%
EPS beat(8)0
Avg EPS beat(8)-33.61%
EPS beat(12)2
Avg EPS beat(12)-0.41%
EPS beat(16)2
Avg EPS beat(16)-9.37%
Revenue beat(2)2
Avg Revenue beat(2)1.25%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)1.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.42%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)4
Avg Revenue beat(16)-1.37%
PT rev (1m)-2.11%
PT rev (3m)-0.04%
EPS NQ rev (1m)-27.59%
EPS NQ rev (3m)-41.67%
EPS NY rev (1m)-16.47%
EPS NY rev (3m)-34.56%
Revenue NQ rev (1m)1.87%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.94 | ||
| Fwd PE | 42.74 | ||
| P/S | 2.96 | ||
| P/FCF | 8.39 | ||
| P/OCF | 4.01 | ||
| P/B | 0.73 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)0.31
EY1.45%
EPS(NY)0.5
Fwd EY2.34%
FCF(TTM)2.55
FCFY11.92%
OCF(TTM)5.33
OCFY24.95%
SpS7.22
BVpS29.4
TBVpS25.2
PEG (NY)N/A
PEG (5Y)5.03
Graham Number14.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.39% | ||
| ROE | 0.99% | ||
| ROCE | 2.61% | ||
| ROIC | 2.06% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.19% | ||
| OM | 25.97% | ||
| PM (TTM) | 4.05% | ||
| GM | 66.83% | ||
| FCFM | 35.3% |
ROA(3y)0.77%
ROA(5y)0.77%
ROE(3y)1.77%
ROE(5y)1.72%
ROIC(3y)1.98%
ROIC(5y)1.97%
ROICexc(3y)1.99%
ROICexc(5y)1.98%
ROICexgc(3y)2.11%
ROICexgc(5y)2.1%
ROCE(3y)2.51%
ROCE(5y)2.49%
ROICexgc growth 3Y-1.96%
ROICexgc growth 5Y7.64%
ROICexc growth 3Y-1.42%
ROICexc growth 5Y8.25%
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%
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.18 | ||
| Debt/EBITDA | 8.45 | ||
| Cap/Depr | 115.92% | ||
| Cap/Sales | 38.58% | ||
| Interest Coverage | 1.22 | ||
| Cash Conversion | 124.7% | ||
| Profit Quality | 872.32% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.19 |
F-Score5
WACC6.06%
ROIC/WACC0.34
Cap/Depr(3y)81.03%
Cap/Depr(5y)66.9%
Cap/Sales(3y)26.01%
Cap/Sales(5y)22.34%
Profit Quality(3y)243.21%
Profit Quality(5y)353.51%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.22%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-84%
EPS Next Y-24.52%
EPS Next 2Y2.59%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%15.2%
Revenue Next Year10.99%
Revenue Next 2Y9.17%
Revenue Next 3Y8.74%
Revenue Next 5Y7.62%
EBIT growth 1Y14.18%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year160.03%
EBIT Next 3Y42.64%
EBIT Next 5YN/A
FCF growth 1Y46.26%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y103.21%
OCF growth 3Y11.19%
OCF growth 5Y2.71%
EASTERLY GOVERNMENT PROPERTI / DEA FAQ
What is the fundamental rating for DEA stock?
ChartMill assigns a fundamental rating of 4 / 10 to DEA.
What is the valuation status of EASTERLY GOVERNMENT PROPERTI (DEA) stock?
ChartMill assigns a valuation rating of 4 / 10 to EASTERLY GOVERNMENT PROPERTI (DEA). This can be considered as Fairly Valued.
How profitable is EASTERLY GOVERNMENT PROPERTI (DEA) stock?
EASTERLY GOVERNMENT PROPERTI (DEA) has a profitability rating of 6 / 10.
What is the financial health of EASTERLY GOVERNMENT PROPERTI (DEA) stock?
The financial health rating of EASTERLY GOVERNMENT PROPERTI (DEA) is 2 / 10.
Can you provide the dividend sustainability for DEA stock?
The dividend rating of EASTERLY GOVERNMENT PROPERTI (DEA) is 6 / 10 and the dividend payout ratio is 773.12%.