EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - NYSE:EGP - US2772761019 - REIT
166.02 USD
-2.4 (-1.43%)
166.02 USD
0 (0%)
Taking everything into account, EGP scores 5 out of 10 in our fundamental rating. EGP was compared to 130 industry peers in the Diversified REITs industry. EGP scores excellent on profitability, but there are concerns on its financial health. EGP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EGP had positive earnings in the past year.
EGP had a positive operating cash flow in the past year.
In the past 5 years EGP has always been profitable.
EGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.56%, EGP belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
EGP's Return On Equity of 6.94% is fine compared to the rest of the industry. EGP outperforms 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.42%, EGP belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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 3.05%.
The last Return On Invested Capital (4.42%) for EGP is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 6.94% | ||
| ROIC | 4.42% |
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 has a Profit Margin of 34.85%. This is amongst the best in the industry. EGP outperforms 87.69% of its industry peers.
In the last couple of years the Profit Margin of EGP has remained more or less at the same level.
With an excellent Operating Margin value of 39.61%, EGP belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
In the last couple of years the Operating Margin of EGP has grown nicely.
Looking at the Gross Margin, with a value of 73.11%, EGP is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
EGP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.61% | ||
| PM (TTM) | 34.85% | ||
| GM | 73.11% |
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.
Compared to 1 year ago, EGP has more shares outstanding
Compared to 5 years ago, EGP has more shares outstanding
The debt/assets ratio for EGP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.15 indicates that EGP is not in any danger for bankruptcy at the moment.
EGP has a better Altman-Z score (3.15) than 96.92% of its industry peers.
EGP has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, EGP belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.15 |
ROIC/WACC0.57
WACC7.7%
2.3 Liquidity
EGP has a Current Ratio of 0.37. 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 Current ratio of EGP (0.37) is worse than 84.62% of its industry peers.
A Quick Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
EGP's Quick ratio of 0.37 is on the low side compared to the rest of the industry. EGP is outperformed by 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
EGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.14%.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
The Revenue has grown by 11.44% in the past year. This is quite good.
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)-3.14%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%5.26%
Revenue 1Y (TTM)11.44%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.44%
3.2 Future
Based on estimates for the next years, EGP will show a small growth in Earnings Per Share. The EPS will grow by 7.27% on average per year.
Based on estimates for the next years, EGP will show a quite strong growth in Revenue. The Revenue will grow by 11.63% on average per year.
EPS Next Y2.17%
EPS Next 2Y4.94%
EPS Next 3Y4.76%
EPS Next 5Y7.27%
Revenue Next Year11.94%
Revenue Next 2Y10.58%
Revenue Next 3Y10.23%
Revenue Next 5Y11.63%
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
EGP is valuated quite expensively with a Price/Earnings ratio of 35.86.
EGP's Price/Earnings is on the same level as the industry average.
EGP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 32.42, the valuation of EGP can be described as expensive.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, EGP is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 32.42 |
4.2 Price Multiples
EGP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EGP is more expensive than 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22 |
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.
The excellent profitability rating of EGP may justify a higher PE ratio.
PEG (NY)16.5
PEG (5Y)4.79
EPS Next 2Y4.94%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.70%.
Compared to an average industry Dividend Yield of 6.66, EGP is paying slightly less dividend.
EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of EGP is nicely growing with an annual growth rate of 11.97%!
EGP has been paying a dividend for at least 10 years, so it has a reliable track record.
EGP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.97%
Div Incr Years13
Div Non Decr Years33
5.3 Sustainability
EGP pays out 117.00% of its income as dividend. 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.
DP117%
EPS Next 2Y4.94%
EPS Next 3Y4.76%
166.02
-2.4 (-1.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.85%
Inst Owner Change-1.75%
Ins Owners0.88%
Ins Owner Change0.43%
Market Cap8.85B
Analysts78.33
Price Target192 (15.65%)
Short Float %3.18%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP117%
Div Incr Years13
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.91%
Min EPS beat(2)1.84%
Max EPS beat(2)1.98%
EPS beat(4)3
Avg EPS beat(4)0.71%
Min EPS beat(4)-1.17%
Max EPS beat(4)1.98%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)6.49%
EPS beat(16)14
Avg EPS beat(16)15.47%
Revenue beat(2)2
Avg Revenue beat(2)0.79%
Min Revenue beat(2)0.01%
Max Revenue beat(2)1.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)1.57%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)9
Avg Revenue beat(12)0.36%
Revenue beat(16)12
Avg Revenue beat(16)0.61%
PT rev (1m)0.25%
PT rev (3m)0.9%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.86 | ||
| Fwd PE | 32.42 | ||
| P/S | 13.05 | ||
| P/FCF | N/A | ||
| P/OCF | 19.51 | ||
| P/B | 2.6 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 22 |
EPS(TTM)4.63
EY2.79%
EPS(NY)5.12
Fwd EY3.08%
FCF(TTM)-3.33
FCFYN/A
OCF(TTM)8.51
OCFY5.13%
SpS12.73
BVpS63.88
TBVpS61.13
PEG (NY)16.5
PEG (5Y)4.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 6.94% | ||
| ROCE | 5.59% | ||
| ROIC | 4.42% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 4.6% | ||
| OM | 39.61% | ||
| PM (TTM) | 34.85% | ||
| GM | 73.11% | ||
| FCFM | N/A |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.12%
ROIC(5y)4.02%
ROICexc(3y)4.13%
ROICexc(5y)4.03%
ROICexgc(3y)4.3%
ROICexgc(5y)4.18%
ROCE(3y)5.21%
ROCE(5y)5.09%
ROICexcg growth 3Y4.65%
ROICexcg growth 5Y3.51%
ROICexc growth 3Y4.42%
ROICexc growth 5Y3.37%
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%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 309.38% | ||
| Cap/Sales | 93.05% | ||
| Interest Coverage | 8.19 | ||
| Cash Conversion | 95.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 3.15 |
F-Score7
WACC7.7%
ROIC/WACC0.57
Cap/Depr(3y)356.47%
Cap/Depr(5y)350.31%
Cap/Sales(3y)108.21%
Cap/Sales(5y)107.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.14%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%5.26%
EPS Next Y2.17%
EPS Next 2Y4.94%
EPS Next 3Y4.76%
EPS Next 5Y7.27%
Revenue 1Y (TTM)11.44%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.44%
Revenue Next Year11.94%
Revenue Next 2Y10.58%
Revenue Next 3Y10.23%
Revenue Next 5Y11.63%
EBIT growth 1Y10.08%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year73.9%
EBIT Next 3Y27.69%
EBIT Next 5Y24.59%
FCF growth 1Y-21.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.23%
OCF growth 3Y17.55%
OCF growth 5Y16.29%