EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EGP - US2772761019 - REIT
181.16 USD
+1.21 (+0.67%)
181.16 USD
0 (0%)
Taking everything into account, EGP scores 5 out of 10 in our fundamental rating. EGP was compared to 125 industry peers in the Diversified REITs industry. EGP has an excellent profitability rating, but there are concerns on its financial health. EGP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year EGP was profitable.
- EGP had a positive operating cash flow in the past year.
- EGP had positive earnings in each of the past 5 years.
- In the past 5 years EGP always reported a positive cash flow from operatings.
1.2 Ratios
- EGP's Return On Assets of 4.64% is amongst the best of the industry. EGP outperforms 89.60% of its industry peers.
- EGP has a better Return On Equity (7.08%) than 77.60% of its industry peers.
- EGP has a better Return On Invested Capital (4.43%) than 85.60% of its industry peers.
- EGP had an Average Return On Invested Capital over the past 3 years of 4.12%. This is in line with the industry average of 3.07%.
- The last Return On Invested Capital (4.43%) for EGP is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 7.08% | ||
| ROIC | 4.43% |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.12%
ROIC(5y)4.02%
1.3 Margins
- EGP's Profit Margin of 35.58% is amongst the best of the industry. EGP outperforms 89.60% of its industry peers.
- In the last couple of years the Profit Margin of EGP has remained more or less at the same level.
- EGP has a better Operating Margin (39.91%) than 86.40% of its industry peers.
- In the last couple of years the Operating Margin of EGP has grown nicely.
- EGP has a Gross Margin of 73.30%. This is in the better half of the industry: EGP outperforms 66.40% of its industry peers.
- In the last couple of years the Gross Margin of EGP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.91% | ||
| PM (TTM) | 35.58% | ||
| GM | 73.3% |
OM growth 3Y2.65%
OM growth 5Y2.53%
PM growth 3Y-2.58%
PM growth 5Y-0.63%
GM growth 3Y0.41%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGP is destroying value.
- The number of shares outstanding for EGP has been increased compared to 1 year ago.
- The number of shares outstanding for EGP has been increased compared to 5 years ago.
- Compared to 1 year ago, EGP has an improved debt to assets ratio.
2.2 Solvency
- EGP has an Altman-Z score of 3.25. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of EGP (3.25) is better than 98.40% of its industry peers.
- EGP has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
- EGP has a Debt to Equity ratio of 0.39. This is amongst the best in the industry. EGP outperforms 94.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.25 |
ROIC/WACC0.56
WACC7.9%
2.3 Liquidity
- EGP has a Current Ratio of 0.32. This is a bad value and indicates that EGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.32, EGP is not doing good in the industry: 85.60% of the companies in the same industry are doing better.
- EGP has a Quick Ratio of 0.32. This is a bad value and indicates that EGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of EGP (0.32) is worse than 84.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
- The earnings per share for EGP have decreased by -1.65% in the last year.
- The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
- Looking at the last year, EGP shows a quite strong growth in Revenue. The Revenue has grown by 11.61% in the last year.
- Measured over the past years, EGP shows a quite strong growth in Revenue. The Revenue has been growing by 14.08% on average per year.
EPS 1Y (TTM)-1.65%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%11.5%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.82%
3.2 Future
- EGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
- Based on estimates for the next years, EGP will show a quite strong growth in Revenue. The Revenue will grow by 11.35% on average per year.
EPS Next Y4.08%
EPS Next 2Y5.97%
EPS Next 3Y5.52%
EPS Next 5Y7.76%
Revenue Next Year11.84%
Revenue Next 2Y10.22%
Revenue Next 3Y10.07%
Revenue Next 5Y11.35%
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
- The Price/Earnings ratio is 38.06, which means the current valuation is very expensive for EGP.
- EGP's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, EGP is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 34.69, the valuation of EGP can be described as expensive.
- EGP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EGP is cheaper than 72.00% of the companies in the same industry.
- EGP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.06 | ||
| Fwd PE | 34.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EGP is valued more expensive than 84.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.62 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EGP does not grow enough to justify the current Price/Earnings ratio.
- EGP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.32
PEG (5Y)5.08
EPS Next 2Y5.97%
EPS Next 3Y5.52%
5. Dividend
5.1 Amount
- EGP has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.59, EGP is paying slightly less dividend.
- EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
- On average, the dividend of EGP grows each year by 11.97%, which is quite nice.
- EGP has been paying a dividend for at least 10 years, so it has a reliable track record.
- EGP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.97%
Div Incr Years13
Div Non Decr Years33
5.3 Sustainability
- 116.28% of the earnings are spent on dividend by EGP. This is not a sustainable payout ratio.
- The dividend of EGP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP116.28%
EPS Next 2Y5.97%
EPS Next 3Y5.52%
EASTGROUP PROPERTIES INC / EGP FAQ
What is the fundamental rating for EGP stock?
ChartMill assigns a fundamental rating of 5 / 10 to EGP.
What is the valuation status of EASTGROUP PROPERTIES INC (EGP) stock?
ChartMill assigns a valuation rating of 2 / 10 to EASTGROUP PROPERTIES INC (EGP). This can be considered as Overvalued.
What is the profitability of EGP stock?
EASTGROUP PROPERTIES INC (EGP) has a profitability rating of 8 / 10.
What is the valuation of EASTGROUP PROPERTIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EASTGROUP PROPERTIES INC (EGP) is 38.06 and the Price/Book (PB) ratio is 2.75.
Can you provide the financial health for EGP stock?
The financial health rating of EASTGROUP PROPERTIES INC (EGP) is 3 / 10.