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 129 industry peers in the Diversified REITs industry. While EGP has a great profitability rating, there are quite some 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.
Each year in the past 5 years EGP has been profitable.
Each year in the past 5 years EGP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EGP (4.89%) is better than 91.27% of its industry peers.
EGP's Return On Equity of 8.21% is amongst the best of the industry. EGP outperforms 83.33% of its industry peers.
The Return On Invested Capital of EGP (4.50%) is better than 87.30% 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 3.11%.
The last Return On Invested Capital (4.50%) for EGP is above the 3 year average (3.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.21% | ||
| ROIC | 4.5% |
ROA(3y)4.65%
ROA(5y)4.54%
ROE(3y)9.08%
ROE(5y)9.19%
ROIC(3y)3.94%
ROIC(5y)3.89%
1.3 Margins
EGP has a better Profit Margin (37.19%) than 88.89% of its industry peers.
EGP's Profit Margin has improved in the last couple of years.
EGP's Operating Margin of 39.81% is amongst the best of the industry. EGP outperforms 86.51% of its industry peers.
In the last couple of years the Operating Margin of EGP has grown nicely.
Looking at the Gross Margin, with a value of 72.75%, EGP is in the better half of the industry, outperforming 65.08% 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 | 39.81% | ||
| PM (TTM) | 37.19% | ||
| GM | 72.75% |
OM growth 3Y4.22%
OM growth 5Y2.04%
PM growth 3Y5.57%
PM growth 5Y3.59%
GM growth 3Y0.68%
GM growth 5Y0.49%
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.
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 2.76. This is not the best score and indicates that EGP is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.76, EGP belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
EGP has a Debt/Equity ratio of 0.53. This is a neutral value indicating EGP is somewhat dependend on debt financing.
EGP's Debt to Equity ratio of 0.53 is amongst the best of the industry. EGP outperforms 86.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.76 |
ROIC/WACC0.57
WACC7.96%
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.
EGP has a worse Current ratio (0.32) than 92.86% of its industry peers.
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 91.27% 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 has grown by an impressive 22.53% over the past year.
Measured over the past years, EGP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.24% on average per year.
Looking at the last year, EGP shows a quite strong growth in Revenue. The Revenue has grown by 13.43% in the last year.
Measured over the past years, EGP shows a quite strong growth in Revenue. The Revenue has been growing by 13.69% on average per year.
EPS 1Y (TTM)22.53%
EPS 3Y16.91%
EPS 5Y15.24%
EPS Q2Q%5.61%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y16.27%
Revenue growth 5Y13.69%
Sales Q2Q%11.16%
3.2 Future
Based on estimates for the next years, EGP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.38% on average per year.
EGP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.91% yearly.
EPS Next Y6.32%
EPS Next 2Y4.96%
EPS Next 3Y6.91%
EPS Next 5Y8.38%
Revenue Next Year12.92%
Revenue Next 2Y11.83%
Revenue Next 3Y11.22%
Revenue Next 5Y13.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EGP is valuated quite expensively with a Price/Earnings ratio of 35.17.
EGP's Price/Earnings ratio is in line with the industry average.
EGP is valuated rather expensively when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.04, which means the current valuation is very expensive for EGP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGP indicates a somewhat cheap valuation: EGP is cheaper than 71.43% of the companies listed in the same industry.
EGP is valuated cheaply when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 35.04 |
4.2 Price Multiples
90.48% of the companies in the same industry are cheaper than EGP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.13 |
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)5.56
PEG (5Y)2.31
EPS Next 2Y4.96%
EPS Next 3Y6.91%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.30%.
EGP's Dividend Yield is slightly below the industry average, which is at 18.24.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
The dividend of EGP is nicely growing with an annual growth rate of 19.84%!
EGP has paid a dividend for at least 10 years, which is 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)19.84%
Div Incr Years12
Div Non Decr Years32
5.3 Sustainability
EGP pays out 104.36% 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.
DP104.36%
EPS Next 2Y4.96%
EPS Next 3Y6.91%
EASTGROUP PROPERTIES INC
NYSE:EGP (1/30/2025, 8:21:10 PM)
After market: 170.23 0 (0%)170.23
+2.07 (+1.23%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner Change0.02%
Ins Owners0.9%
Ins Owner Change-1.57%
Market Cap8.43B
Analysts78.33
Price Target200.83 (17.98%)
Short Float %2.79%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend4.94
Dividend Growth(5Y)19.84%
DP104.36%
Div Incr Years12
Div Non Decr Years32
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.96%
Min EPS beat(2)-1.17%
Max EPS beat(2)3.08%
EPS beat(4)3
Avg EPS beat(4)10.5%
Min EPS beat(4)-1.17%
Max EPS beat(4)24.59%
EPS beat(8)7
Avg EPS beat(8)8.86%
EPS beat(12)10
Avg EPS beat(12)19.48%
EPS beat(16)14
Avg EPS beat(16)19.34%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.57%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)0.57%
Revenue beat(8)6
Avg Revenue beat(8)0.56%
Revenue beat(12)9
Avg Revenue beat(12)0.66%
Revenue beat(16)12
Avg Revenue beat(16)0.74%
PT rev (1m)-0.35%
PT rev (3m)-0.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 35.04 | ||
| P/S | 13.48 | ||
| P/FCF | N/A | ||
| P/OCF | 21.03 | ||
| P/B | 2.98 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 23.13 |
EPS(TTM)4.84
EY2.84%
EPS(NY)4.86
Fwd EY2.85%
FCF(TTM)-3.28
FCFYN/A
OCF(TTM)8.1
OCFY4.76%
SpS12.63
BVpS57.21
TBVpS54.54
PEG (NY)5.56
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 8.21% | ||
| ROCE | 5.7% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.52% | ||
| ROICexgc | 4.68% | ||
| OM | 39.81% | ||
| PM (TTM) | 37.19% | ||
| GM | 72.75% | ||
| FCFM | N/A |
ROA(3y)4.65%
ROA(5y)4.54%
ROE(3y)9.08%
ROE(5y)9.19%
ROIC(3y)3.94%
ROIC(5y)3.89%
ROICexc(3y)3.95%
ROICexc(5y)3.9%
ROICexgc(3y)4.1%
ROICexgc(5y)4.03%
ROCE(3y)4.99%
ROCE(5y)4.94%
ROICexcg growth 3Y3.2%
ROICexcg growth 5Y0.09%
ROICexc growth 3Y2.96%
ROICexc growth 5Y0.07%
OM growth 3Y4.22%
OM growth 5Y2.04%
PM growth 3Y5.57%
PM growth 5Y3.59%
GM growth 3Y0.68%
GM growth 5Y0.49%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 304.32% | ||
| Cap/Sales | 90.03% | ||
| Interest Coverage | 6.39 | ||
| Cash Conversion | 92.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 2.76 |
F-Score6
WACC7.96%
ROIC/WACC0.57
Cap/Depr(3y)382.1%
Cap/Depr(5y)372.28%
Cap/Sales(3y)117.95%
Cap/Sales(5y)116.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.53%
EPS 3Y16.91%
EPS 5Y15.24%
EPS Q2Q%5.61%
EPS Next Y6.32%
EPS Next 2Y4.96%
EPS Next 3Y6.91%
EPS Next 5Y8.38%
Revenue 1Y (TTM)13.43%
Revenue growth 3Y16.27%
Revenue growth 5Y13.69%
Sales Q2Q%11.16%
Revenue Next Year12.92%
Revenue Next 2Y11.83%
Revenue Next 3Y11.22%
Revenue Next 5Y13.91%
EBIT growth 1Y14.45%
EBIT growth 3Y21.18%
EBIT growth 5Y16%
EBIT Next Year96.48%
EBIT Next 3Y34.95%
EBIT Next 5Y28.71%
FCF growth 1Y57.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.32%
OCF growth 3Y19.88%
OCF growth 5Y15.48%