EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
NYSE:DEA - New York Stock Exchange, Inc. - US27616P3010 - REIT - Currency: USD
DEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 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
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.
In the past 5 years DEA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.54%, DEA is in line with its industry, outperforming 46.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.31%, DEA is in line with its industry, outperforming 50.39% of the companies in the same industry.
The Return On Invested Capital of DEA (2.04%) is worse than 65.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DEA is in line with the industry average of 3.15%.
The 3 year average ROIC (1.98%) for DEA is below the current ROIC(2.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.31% | ||
| 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
The Profit Margin of DEA (5.66%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DEA has grown nicely.
The Operating Margin of DEA (26.33%) is comparable to the rest of the industry.
DEA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 66.87%, DEA is in line with its industry, outperforming 51.16% of the companies in the same industry.
DEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.33% | ||
| PM (TTM) | 5.66% | ||
| GM | 66.87% |
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.
Compared to 1 year ago, DEA has a worse debt to assets ratio.
2.2 Solvency
DEA has an Altman-Z score of 0.25. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.25, DEA is doing worse than 65.12% of the companies in the same industry.
DEA has a debt to FCF ratio of 548.14. This is a negative value and a sign of low solvency as DEA would need 548.14 years to pay back of all of its debts.
DEA has a Debt to FCF ratio (548.14) which is in line with its industry peers.
DEA has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DEA (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 548.15 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.32
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.87 indicates that DEA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, DEA is in line with its industry, outperforming 46.51% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that DEA may have some problems paying its short term obligations.
DEA's Quick ratio of 0.87 is in line compared to the rest of the industry. DEA outperforms 47.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for DEA have decreased strongly by -16.00% 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 13.70% yearly.
DEA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.62%.
The Revenue has been growing slightly by 6.38% on average over the past years.
EPS 1Y (TTM)-16%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-44%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.07%
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 14.18% yearly.
DEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y15.35%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
EPS Next 5YN/A
Revenue Next Year9.31%
Revenue Next 2Y8.93%
Revenue Next 3Y8.49%
Revenue Next 5Y7.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
DEA is valuated quite expensively with a Price/Earnings ratio of 55.33.
Compared to the rest of the industry, the Price/Earnings ratio of DEA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DEA is valued quite expensively.
Based on the Price/Forward Earnings ratio of 32.41, the valuation of DEA can be described as expensive.
73.64% of the companies in the same industry are more expensive than DEA, based on the Price/Forward Earnings ratio.
DEA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.33 | ||
| Fwd PE | 32.41 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as DEA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 357.23 | ||
| EV/EBITDA | 14.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DEA does not grow enough to justify the current Price/Earnings ratio.
DEA has a very decent profitability rating, which may justify a higher PE ratio.
DEA's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.6
PEG (5Y)4.04
EPS Next 2Y22.87%
EPS Next 3Y14.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.79%, DEA is a good candidate for dividend investing.
DEA's Dividend Yield is a higher than the industry average which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.35, DEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
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.
The dividend of DEA decreased recently.
Dividend Growth(5Y)18.09%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
673.49% of the earnings are spent on dividend by DEA. This is not a sustainable payout ratio.
DEA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP673.49%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
23.24
+0.13 (+0.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner Change0%
Ins Owners6.03%
Ins Owner Change0.35%
Market Cap1.04B
Analysts51.43
Price Target23.72 (2.07%)
Short Float %3.76%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
Yearly Dividend2.77
Dividend Growth(5Y)18.09%
DP673.49%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.77%
Min EPS beat(2)-44.99%
Max EPS beat(2)-44.55%
EPS beat(4)0
Avg EPS beat(4)-27.83%
Min EPS beat(4)-44.99%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-22.36%
EPS beat(12)2
Avg EPS beat(12)0.33%
EPS beat(16)2
Avg EPS beat(16)-3.33%
Revenue beat(2)0
Avg Revenue beat(2)-2.55%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-0.15%
Revenue beat(8)1
Avg Revenue beat(8)-1.75%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.54%
PT rev (1m)-6.38%
PT rev (3m)93.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)100%
EPS NY rev (1m)-9.58%
EPS NY rev (3m)126.04%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.33 | ||
| Fwd PE | 32.41 | ||
| P/S | 3.39 | ||
| P/FCF | 357.23 | ||
| P/OCF | 6.4 | ||
| P/B | 0.78 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 14.61 |
EPS(TTM)0.42
EY1.81%
EPS(NY)0.72
Fwd EY3.09%
FCF(TTM)0.07
FCFY0.28%
OCF(TTM)3.63
OCFY15.61%
SpS6.86
BVpS29.7
TBVpS26.24
PEG (NY)3.6
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.54% | ||
| ROE | 1.31% | ||
| ROCE | 2.59% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.16% | ||
| OM | 26.33% | ||
| PM (TTM) | 5.66% | ||
| GM | 66.87% | ||
| FCFM | 0.95% |
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 Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 548.15 | ||
| Debt/EBITDA | 8.87 | ||
| Cap/Depr | 161.09% | ||
| Cap/Sales | 51.96% | ||
| Interest Coverage | 1.34 | ||
| Cash Conversion | 90.31% | ||
| Profit Quality | 16.75% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 0.25 |
F-Score4
WACC6.48%
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)-16%
EPS 3Y-18.42%
EPS 5Y13.7%
EPS Q2Q%-44%
EPS Next Y15.35%
EPS Next 2Y22.87%
EPS Next 3Y14.18%
EPS Next 5YN/A
Revenue 1Y (TTM)6.62%
Revenue growth 3Y3.19%
Revenue growth 5Y6.38%
Sales Q2Q%8.07%
Revenue Next Year9.31%
Revenue Next 2Y8.93%
Revenue Next 3Y8.49%
Revenue Next 5Y7.62%
EBIT growth 1Y18.16%
EBIT growth 3Y2.57%
EBIT growth 5Y16.22%
EBIT Next Year156.64%
EBIT Next 3Y41.46%
EBIT Next 5YN/A
FCF growth 1Y-96.52%
FCF growth 3Y-50.88%
FCF growth 5Y-31.59%
OCF growth 1Y32.03%
OCF growth 3Y11.19%
OCF growth 5Y2.71%