EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
NYSE:EGP - New York Stock Exchange, Inc. - US2772761019 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to EGP. 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 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.
In the past year EGP had a positive cash flow from operations.
EGP had positive earnings in each of the past 5 years.
Each year in the past 5 years EGP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EGP (4.47%) is better than 90.77% of its industry peers.
EGP's Return On Equity of 6.83% is fine compared to the rest of the industry. EGP outperforms 79.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.37%, EGP belongs to the top of the industry, outperforming 83.08% 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 3.16%.
The last Return On Invested Capital (4.37%) for EGP is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 6.83% | ||
| ROIC | 4.37% |
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
With an excellent Profit Margin value of 34.60%, EGP belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
EGP's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 39.82%, 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.
EGP has a better Gross Margin (73.05%) than 67.69% 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 | 39.82% | ||
| PM (TTM) | 34.6% | ||
| GM | 73.05% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EGP is destroying value.
The number of shares outstanding for EGP has been increased compared to 1 year ago.
EGP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EGP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.13 indicates that EGP is not in any danger for bankruptcy at the moment.
EGP has a Altman-Z score of 3.13. This is amongst the best in the industry. EGP outperforms 96.92% of its industry peers.
EGP has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.41, EGP belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.13 |
ROIC/WACC0.52
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
EGP has a worse Current ratio (0.37) than 82.31% of its industry peers.
A Quick Ratio of 0.37 indicates that EGP may have some problems paying its short term obligations.
The Quick ratio of EGP (0.37) is worse than 81.54% 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 -0.87%.
EGP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
The Revenue has grown by 11.98% in the past year. This is quite good.
The Revenue has been growing by 14.08% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.87%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-6.56%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%13.11%
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 7.44% on average per year.
EGP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.79% yearly.
EPS Next Y3.91%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
EPS Next 5Y7.44%
Revenue Next Year10.68%
Revenue Next 2Y10.27%
Revenue Next 3Y10.55%
Revenue Next 5Y11.79%
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
A Price/Earnings ratio of 36.57 indicates a quite expensive valuation of EGP.
EGP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of EGP to the average of the S&P500 Index (27.15), we can say EGP is valued slightly more expensively.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 31.32.
72.31% of the companies in the same industry are more expensive than EGP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EGP to the average of the S&P500 Index (21.60), we can say EGP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.57 | ||
| Fwd PE | 31.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGP is valued expensively inside the industry as 90.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EGP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.36
PEG (5Y)4.88
EPS Next 2Y7.13%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.64, EGP is paying slightly less dividend.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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
EGP pays out 115.76% of its income as dividend. This is not a sustainable payout ratio.
EGP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP115.76%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
167.12
-0.43 (-0.26%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.04%
Inst Owner Change4.33%
Ins Owners0.89%
Ins Owner Change2.6%
Market Cap8.78B
Analysts79.2
Price Target190.29 (13.86%)
Short Float %2.23%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP115.76%
Div Incr Years13
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.02%
Min EPS beat(2)0.2%
Max EPS beat(2)1.84%
EPS beat(4)3
Avg EPS beat(4)0.99%
Min EPS beat(4)-1.17%
Max EPS beat(4)3.08%
EPS beat(8)7
Avg EPS beat(8)6.93%
EPS beat(12)11
Avg EPS beat(12)9.73%
EPS beat(16)14
Avg EPS beat(16)15.5%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)1.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)1.57%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)9
Avg Revenue beat(12)0.49%
Revenue beat(16)12
Avg Revenue beat(16)0.62%
PT rev (1m)-0.24%
PT rev (3m)-5.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.57 | ||
| Fwd PE | 31.32 | ||
| P/S | 13.29 | ||
| P/FCF | N/A | ||
| P/OCF | 20.25 | ||
| P/B | 2.62 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 22.27 |
EPS(TTM)4.57
EY2.73%
EPS(NY)5.34
Fwd EY3.19%
FCF(TTM)-3.99
FCFYN/A
OCF(TTM)8.25
OCFY4.94%
SpS12.58
BVpS63.69
TBVpS60.82
PEG (NY)9.36
PEG (5Y)4.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 6.83% | ||
| ROCE | 5.54% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 4.55% | ||
| OM | 39.82% | ||
| PM (TTM) | 34.6% | ||
| GM | 73.05% | ||
| 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 | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 326.8% | ||
| Cap/Sales | 97.36% | ||
| Interest Coverage | 7.23 | ||
| Cash Conversion | 94.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 3.13 |
F-Score7
WACC8.4%
ROIC/WACC0.52
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)-0.87%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-6.56%
EPS Next Y3.91%
EPS Next 2Y7.13%
EPS Next 3Y6.98%
EPS Next 5Y7.44%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%13.11%
Revenue Next Year10.68%
Revenue Next 2Y10.27%
Revenue Next 3Y10.55%
Revenue Next 5Y11.79%
EBIT growth 1Y11.97%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year73.51%
EBIT Next 3Y28.43%
EBIT Next 5Y24.05%
FCF growth 1Y-37.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.25%
OCF growth 3Y17.55%
OCF growth 5Y16.29%