EASTERLY GOVERNMENT PROPERTI (DEA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEA - US27616P3010 - REIT
23.6 USD
+0.25 (+1.07%)
23.67 USD
+0.07 (+0.3%)
Overall DEA gets a fundamental rating of 4 out of 10. We evaluated DEA against 124 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
- DEA had positive earnings in the past year.
- 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
- DEA has a Return On Assets of 0.39%. This is comparable to the rest of the industry: DEA outperforms 45.97% of its industry peers.
- Looking at the Return On Equity, with a value of 0.99%, DEA is in line with its industry, outperforming 45.16% of the companies in the same industry.
- The Return On Invested Capital of DEA (2.06%) is worse than 62.10% 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 3.05%.
- 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
- Looking at the Profit Margin, with a value of 4.05%, DEA is in line with its industry, outperforming 47.58% of the companies in the same industry.
- DEA's Profit Margin has improved in the last couple of years.
- DEA has a Operating Margin (25.94%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DEA has grown nicely.
- DEA has a Gross Margin (66.83%) which is comparable to the rest of the industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DEA is destroying value.
- Compared to 1 year ago, DEA has more shares outstanding
- 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 0.23. This is a bad value and indicates that DEA is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.23, DEA is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
- 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.
- With an excellent Debt to FCF ratio value of 14.11, DEA belongs to the best of the industry, outperforming 85.48% 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.
- The Debt to Equity ratio of DEA (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 14.11 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.33
WACC6.2%
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 worse Current ratio (0.58) than 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.
- DEA has a Quick ratio of 0.58. This is in the lower half of the industry: DEA underperforms 76.61% 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%.
- DEA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.70% yearly.
- Looking at the last year, DEA shows a quite strong growth in Revenue. The Revenue has grown by 10.42% in the last year.
- The Revenue has been growing slightly by 6.38% on average over the past years.
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-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
- 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.
- 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 76.13.
- DEA's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. DEA is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 50.80, DEA can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, DEA is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
- DEA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.13 | ||
| Fwd PE | 50.8 |
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 | 9.37 | ||
| EV/EBITDA | 14.09 |
4.3 Compensation for Growth
- The decent profitability rating of DEA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.56
EPS Next 2Y-1.1%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.71%, DEA is a good candidate for dividend investing.
- 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 1.81, DEA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.71% |
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
- 776.70% 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.
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 76.13 and the Price/Book (PB) ratio is 0.82.
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.