EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EGP - US2772761019 - REIT
179.9 USD
+0.11 (+0.06%)
179.9 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EGP. EGP was compared to 128 industry peers in the Diversified REITs industry. While EGP belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, EGP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EGP had positive earnings in the past year.
In the past year EGP had a positive cash flow from operations.
Each year in the past 5 years EGP has been profitable.
EGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EGP has a better Return On Assets (4.64%) than 92.97% of its industry peers.
The Return On Equity of EGP (7.08%) is better than 80.47% of its industry peers.
EGP has a better Return On Invested Capital (4.43%) than 85.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EGP is in line with the industry average of 3.06%.
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 89.06% 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 39.91%, EGP belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
In the last couple of years the Operating Margin of EGP has grown nicely.
With a decent Gross Margin value of 73.30%, EGP is doing good in the industry, outperforming 67.19% of the companies in the same industry.
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
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
EGP has an Altman-Z score of 3.24. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
EGP has a Altman-Z score of 3.24. This is amongst the best in the industry. EGP outperforms 97.66% 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's Debt to Equity ratio of 0.39 is amongst the best of the industry. EGP outperforms 94.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.24 |
ROIC/WACC0.57
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.32 indicates that EGP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.32, EGP is doing worse than 85.16% of the companies in the same industry.
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.
EGP's Quick ratio of 0.32 is on the low side compared to the rest of the industry. EGP is outperformed by 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
EGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.65%.
Measured over the past 5 years, EGP shows a small growth in Earnings Per Share. The EPS has been growing by 7.49% on average per year.
The Revenue has grown by 11.61% 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)-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
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 Y6.79%
EPS Next 2Y7.87%
EPS Next 3Y8.99%
EPS Next 5Y7.27%
Revenue Next Year11.9%
Revenue Next 2Y10.58%
Revenue Next 3Y10.54%
Revenue Next 5Y11.63%
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 37.79 indicates a quite expensive valuation of EGP.
Compared to the rest of the industry, the Price/Earnings ratio of EGP indicates a somewhat cheap valuation: EGP is cheaper than 60.94% of the companies listed in the same industry.
EGP is valuated rather expensively when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 33.25.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EGP to the average of the S&P500 Index (34.42), we can say EGP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.79 | ||
| Fwd PE | 33.25 |
4.2 Price Multiples
EGP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EGP is more expensive than 86.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.6 |
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)5.56
PEG (5Y)5.04
EPS Next 2Y7.87%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.53%, EGP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.59, EGP is paying slightly less dividend.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of EGP is nicely growing with an annual growth rate of 11.97%!
EGP has paid a dividend for at least 10 years, which is 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 116.28% 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.
DP116.28%
EPS Next 2Y7.87%
EPS Next 3Y8.99%
179.9
+0.11 (+0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.31%
Inst Owner Change2.12%
Ins Owners0.88%
Ins Owner Change0.22%
Market Cap9.59B
Revenue(TTM)697.91M
Net Income(TTM)248.31M
Analysts79.2
Price Target196.92 (9.46%)
Short Float %3%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP116.28%
Div Incr Years13
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.4%
Min EPS beat(2)1.98%
Max EPS beat(2)2.82%
EPS beat(4)4
Avg EPS beat(4)1.71%
Min EPS beat(4)0.2%
Max EPS beat(4)2.82%
EPS beat(8)7
Avg EPS beat(8)6.11%
EPS beat(12)11
Avg EPS beat(12)6.48%
EPS beat(16)14
Avg EPS beat(16)15.04%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)0.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)1.57%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)8
Avg Revenue beat(12)0.26%
Revenue beat(16)11
Avg Revenue beat(16)0.41%
PT rev (1m)2.56%
PT rev (3m)2.82%
EPS NQ rev (1m)3.97%
EPS NQ rev (3m)5.79%
EPS NY rev (1m)3.73%
EPS NY rev (3m)4.52%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.79 | ||
| Fwd PE | 33.25 | ||
| P/S | 13.75 | ||
| P/FCF | N/A | ||
| P/OCF | 20.42 | ||
| P/B | 2.73 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 22.6 |
EPS(TTM)4.76
EY2.65%
EPS(NY)5.41
Fwd EY3.01%
FCF(TTM)-5.19
FCFYN/A
OCF(TTM)8.81
OCFY4.9%
SpS13.09
BVpS65.79
TBVpS62.91
PEG (NY)5.56
PEG (5Y)5.04
Graham Number83.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 7.08% | ||
| ROCE | 5.61% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 4.59% | ||
| OM | 39.91% | ||
| PM (TTM) | 35.58% | ||
| GM | 73.3% | ||
| 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%
ROICexgc growth 3Y4.65%
ROICexgc 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 356.79% | ||
| Cap/Sales | 107.01% | ||
| Interest Coverage | 8.67 | ||
| Cash Conversion | 96.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3.24 |
F-Score5
WACC7.73%
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)-1.65%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%11.5%
EPS Next Y6.79%
EPS Next 2Y7.87%
EPS Next 3Y8.99%
EPS Next 5Y7.27%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%11.82%
Revenue Next Year11.9%
Revenue Next 2Y10.58%
Revenue Next 3Y10.54%
Revenue Next 5Y11.63%
EBIT growth 1Y11.88%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year74.3%
EBIT Next 3Y28.26%
EBIT Next 5Y23.71%
FCF growth 1Y-50.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.18%
OCF growth 3Y17.55%
OCF growth 5Y16.29%
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 for 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 37.79 and the Price/Book (PB) ratio is 2.73.
Can you provide the expected EPS growth for EGP stock?
The Earnings per Share (EPS) of EASTGROUP PROPERTIES INC (EGP) is expected to grow by 6.79% in the next year.