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%)
Overall EGP gets a fundamental rating of 5 out of 10. We evaluated EGP against 125 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. EGP is valied quite expensively at the moment, while 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.
- EGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of EGP (4.64%) is better than 89.60% of its industry peers.
- EGP has a Return On Equity of 7.08%. This is in the better half of the industry: EGP outperforms 77.60% of its industry peers.
- With an excellent Return On Invested Capital value of 4.43%, EGP belongs to the best of the industry, outperforming 85.60% 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 3.07%.
- The 3 year average ROIC (4.12%) for EGP is below the current ROIC(4.43%), indicating increased profibility in the last year.
| 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
- The Profit Margin of EGP (35.58%) is better than 89.60% of its industry peers.
- EGP's Profit Margin has been stable in the last couple of years.
- EGP's Operating Margin of 39.91% is amongst the best of the industry. EGP outperforms 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.
- EGP's Gross Margin has been stable in the last couple of years.
| 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
- EGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 3.27. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.27, EGP belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
- 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 94.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.27 |
ROIC/WACC0.56
WACC7.89%
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 85.60% 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.
- EGP's Quick ratio of 0.32 is on the low side compared to the rest of the industry. EGP is outperformed by 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.
- EGP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
- Looking at the last year, EGP shows a quite strong growth in Revenue. The Revenue has grown by 11.61% in the last year.
- 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
- EGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
- The Revenue is expected to grow by 11.35% on average over the next years. This is quite good.
EPS Next Y6.39%
EPS Next 2Y6.2%
EPS Next 3Y4.56%
EPS Next 5Y7.76%
Revenue Next Year11.84%
Revenue Next 2Y10.26%
Revenue Next 3Y10.16%
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.
- The rest of the industry has a similar Price/Earnings ratio as EGP.
- EGP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 34.54, the valuation of EGP can be described as expensive.
- Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than 72.80% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EGP to the average of the S&P500 Index (24.26), we can say EGP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.06 | ||
| Fwd PE | 34.54 |
4.2 Price Multiples
- EGP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EGP is more expensive than 85.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.75 |
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)5.95
PEG (5Y)5.08
EPS Next 2Y6.2%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.45%, EGP has a reasonable but not impressive dividend return.
- EGP's Dividend Yield is slightly below the industry average, which is at 6.71.
- EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
- On average, the dividend of EGP grows each year by 11.97%, which is quite nice.
- 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)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 2Y6.2%
EPS Next 3Y4.56%
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.