EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEA - US27616P3010 - REIT
23.13 USD
+0.59 (+2.62%)
23.13 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. 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
- In the past year DEA was profitable.
- In the past year DEA had a positive cash flow from operations.
- Each year in the past 5 years DEA has been profitable.
- Each year in the past 5 years DEA had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.39%, DEA perfoms like the industry average, outperforming 45.97% of the companies in the same industry.
- DEA has a Return On Equity of 0.99%. This is comparable to the rest of the industry: DEA outperforms 45.16% of its industry peers.
- With a Return On Invested Capital value of 2.06%, DEA is not doing good in the industry: 62.10% of the companies in the same industry are doing better.
- 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 3 year average ROIC (1.98%) for DEA is below the current ROIC(2.06%), indicating increased profibility in the last year.
| 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 (4.05%) which is in line with its industry peers.
- DEA's Profit Margin has improved in the last couple of years.
- DEA has a Operating Margin (25.94%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of DEA has grown nicely.
- 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
- DEA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- Based on the Altman-Z score of 0.21, we must say that DEA is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of DEA (0.21) is worse than 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.
- DEA has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.23, DEA is in line with its industry, outperforming 53.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.11 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.33
WACC6.17%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that DEA may have some problems paying its short term obligations.
- DEA has a Current ratio of 0.58. This is in the lower half of the industry: DEA underperforms 76.61% 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.
- 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.
- The Revenue has grown by 10.42% in the past year. This is quite good.
- DEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.38% yearly.
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
- DEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- DEA is valuated quite expensively with a Price/Earnings ratio of 74.61.
- DEA's Price/Earnings is on the same level as the industry average.
- DEA is valuated expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 49.78, which means the current valuation is very expensive for DEA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DEA indicates a somewhat cheap valuation: DEA is cheaper than 62.90% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, DEA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.61 | ||
| Fwd PE | 49.78 |
4.2 Price Multiples
- DEA's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEA indicates a rather cheap valuation: DEA is cheaper than 92.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 13.84 |
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)5.45
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- DEA has a Yearly Dividend Yield of 7.71%, which is a nice return.
- DEA's Dividend Yield is a higher than the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.82, DEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.71% |
5.2 History
- On average, the dividend of DEA grows each year by 18.09%, which is quite nice.
- 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 776.70% 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.
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 74.61 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.