EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - NYSE:DEA - US27616P3010 - REIT
23.31 USD
-0.05 (-0.21%)
23.25 USD
-0.06 (-0.26%)
DEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. DEA has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, DEA is valued expensive at the moment.
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.
In the past 5 years DEA has always been profitable.
Each year in the past 5 years DEA had a positive operating cash flow.
1.2 Ratios
DEA has a Return On Assets of 0.50%. This is comparable to the rest of the industry: DEA outperforms 48.46% of its industry peers.
DEA has a Return On Equity (1.27%) which is in line with its industry peers.
The Return On Invested Capital of DEA (2.04%) is worse than 62.31% 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 3.05%.
The last Return On Invested Capital (2.04%) for DEA is above the 3 year average (1.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 1.27% | ||
| ROIC | 2.04% |
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 (5.35%) which is comparable to the rest of the industry.
DEA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 26.52%, DEA perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
In the last couple of years the Operating Margin of DEA has grown nicely.
With a Gross Margin value of 67.16%, DEA perfoms like the industry average, outperforming 51.54% of the companies in the same 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 | 26.52% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.16% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 0.23. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
DEA has a worse Altman-Z score (0.23) than 64.62% of its industry peers.
The Debt to FCF ratio of DEA is 501.57, which is on the high side as it means it would take DEA, 501.57 years of fcf income to pay off all of its debts.
DEA has a Debt to FCF ratio (501.57) which is in line with its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that DEA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.29, DEA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 501.57 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.32
WACC6.34%
2.3 Liquidity
DEA has a Current Ratio of 0.70. This is a bad value and indicates that DEA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DEA (0.70) is worse than 66.15% of its industry peers.
DEA has a Quick Ratio of 0.70. 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's Quick ratio of 0.70 is on the low side compared to the rest of the industry. DEA is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
DEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.68%.
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.
DEA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.59%.
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)-13.68%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-10%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
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-9.63%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue Next Year10.15%
Revenue Next 2Y8.35%
Revenue Next 3Y8.37%
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 56.85 indicates a quite expensive valuation of DEA.
DEA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DEA to the average of the S&P500 Index (27.20), we can say DEA is valued expensively.
Based on the Price/Forward Earnings ratio of 36.63, the valuation of DEA can be described as expensive.
DEA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEA is cheaper than 70.00% 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 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.85 | ||
| Fwd PE | 36.63 |
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.
DEA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 307.75 | ||
| EV/EBITDA | 14.8 |
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)4.15
EPS Next 2Y15.74%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.69%, DEA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, DEA pays a bit more dividend than its industry peers.
DEA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.69% |
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
650.65% of the earnings are spent on dividend by DEA. 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.
DP650.65%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
23.31
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.5%
Inst Owner Change-62.01%
Ins Owners6.09%
Ins Owner Change0.35%
Market Cap1.06B
Analysts52.86
Price Target24.23 (3.95%)
Short Float %4.71%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.69% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP650.65%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.15%
Min EPS beat(2)-44.55%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-29.07%
Min EPS beat(4)-44.99%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-23.39%
EPS beat(12)2
Avg EPS beat(12)-0.82%
EPS beat(16)2
Avg EPS beat(16)-4.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)1.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)1.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.44%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)0.71%
PT rev (3m)-4.36%
EPS NQ rev (1m)-24.59%
EPS NQ rev (3m)-24.59%
EPS NY rev (1m)-21.66%
EPS NY rev (3m)-29.17%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.85 | ||
| Fwd PE | 36.63 | ||
| P/S | 3.35 | ||
| P/FCF | 307.75 | ||
| P/OCF | 7.34 | ||
| P/B | 0.79 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 14.8 |
EPS(TTM)0.41
EY1.76%
EPS(NY)0.64
Fwd EY2.73%
FCF(TTM)0.08
FCFY0.32%
OCF(TTM)3.18
OCFY13.62%
SpS6.97
BVpS29.42
TBVpS25.28
PEG (NY)N/A
PEG (5Y)4.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 1.27% | ||
| ROCE | 2.58% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 2.17% | ||
| OM | 26.52% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.16% | ||
| FCFM | 1.09% |
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%
ROICexcg growth 3Y-1.96%
ROICexcg 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-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 501.57 | ||
| Debt/EBITDA | 9.19 | ||
| Cap/Depr | 135.47% | ||
| Cap/Sales | 44.5% | ||
| Interest Coverage | 1.32 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 20.33% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.23 |
F-Score4
WACC6.34%
ROIC/WACC0.32
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)-13.68%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-10%
EPS Next Y-9.63%
EPS Next 2Y15.74%
EPS Next 3Y12.52%
EPS Next 5Y11.23%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%10.51%
Revenue Next Year10.15%
Revenue Next 2Y8.35%
Revenue Next 3Y8.37%
Revenue Next 5Y7.62%
EBIT growth 1Y17.68%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year157.8%
EBIT Next 3Y42.1%
EBIT Next 5YN/A
FCF growth 1Y-95.73%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y19.42%
OCF growth 3Y11.19%
OCF growth 5Y2.71%