EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
NYSE:EGP - New York Stock Exchange, Inc. - US2772761019 - REIT - Currency: USD
Taking everything into account, EGP scores 5 out of 10 in our fundamental rating. EGP was compared to 129 industry peers in the Diversified REITs industry. EGP scores excellent on profitability, but 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
In the past year EGP was profitable.
In the past year EGP had a positive cash flow from operations.
In the past 5 years EGP has always been profitable.
Each year in the past 5 years EGP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.49%, EGP belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
The Return On Equity of EGP (6.92%) is better than 82.95% of its industry peers.
EGP has a better Return On Invested Capital (4.29%) than 86.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EGP is in line with the industry average of 3.15%.
The 3 year average ROIC (4.07%) for EGP is below the current ROIC(4.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 6.92% | ||
| ROIC | 4.29% |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.07%
ROIC(5y)3.99%
1.3 Margins
EGP has a better Profit Margin (35.57%) than 87.60% of its industry peers.
In the last couple of years the Profit Margin of EGP has remained more or less at the same level.
EGP has a Operating Margin of 39.86%. This is amongst the best in the industry. EGP outperforms 86.82% of its industry peers.
EGP's Operating Margin has improved in the last couple of years.
The Gross Margin of EGP (72.79%) is better than 67.44% 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 | 39.86% | ||
| PM (TTM) | 35.57% | ||
| GM | 72.79% |
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.
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 3.24 indicates that EGP is not in any danger for bankruptcy at the moment.
The Altman-Z score of EGP (3.24) is better than 96.90% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that EGP is not too dependend on debt financing.
EGP has a better Debt to Equity ratio (0.46) than 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.24 |
ROIC/WACC0.54
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.34 indicates that EGP may have some problems paying its short term obligations.
EGP has a Current ratio of 0.34. This is amonst the worse of the industry: EGP underperforms 88.37% of its industry peers.
EGP has a Quick Ratio of 0.34. 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 0.34 is on the low side compared to the rest of the industry. EGP is outperformed by 86.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.44% over the past year.
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 12.21% in the past year. This is quite good.
EGP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.08% yearly.
EPS 1Y (TTM)5.44%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-14.07%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%9.99%
3.2 Future
EGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
EGP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.72% yearly.
EPS Next Y4.83%
EPS Next 2Y8.43%
EPS Next 3Y13.15%
EPS Next 5Y7.98%
Revenue Next Year10.74%
Revenue Next 2Y10.38%
Revenue Next 3Y13.36%
Revenue Next 5Y12.72%
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.
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
Based on the Price/Earnings ratio of 39.90, the valuation of EGP can be described as expensive.
EGP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.71, EGP is valued a bit more expensive.
EGP is valuated quite expensively with a Price/Forward Earnings ratio of 38.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGP indicates a somewhat cheap valuation: EGP is cheaper than 72.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.34. EGP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.9 | ||
| Fwd PE | 38.07 |
4.2 Price Multiples
EGP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EGP is more expensive than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EGP may justify a higher PE ratio.
EGP's earnings are expected to grow with 13.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.26
PEG (5Y)5.33
EPS Next 2Y8.43%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.11%.
EGP's Dividend Yield is slightly below the industry average, which is at 19.25.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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 Years12
Div Non Decr Years32
5.3 Sustainability
111.00% of the earnings are spent on dividend by EGP. 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.
DP111%
EPS Next 2Y8.43%
EPS Next 3Y13.15%
185.55
-1.91 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.92%
Inst Owner Change8.66%
Ins Owners0.87%
Ins Owner Change0.81%
Market Cap9.19B
Analysts79.2
Price Target198.95 (7.22%)
Short Float %2.79%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend5.08
Dividend Growth(5Y)11.97%
DP111%
Div Incr Years12
Div Non Decr Years32
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.48%
Min EPS beat(2)-1.17%
Max EPS beat(2)0.2%
EPS beat(4)3
Avg EPS beat(4)4.41%
Min EPS beat(4)-1.17%
Max EPS beat(4)15.51%
EPS beat(8)7
Avg EPS beat(8)8.81%
EPS beat(12)10
Avg EPS beat(12)9.52%
EPS beat(16)14
Avg EPS beat(16)16.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-0.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)9
Avg Revenue beat(12)0.47%
Revenue beat(16)12
Avg Revenue beat(16)0.68%
PT rev (1m)0.1%
PT rev (3m)-1.62%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)1.55%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.9 | ||
| Fwd PE | 38.07 | ||
| P/S | 14.35 | ||
| P/FCF | N/A | ||
| P/OCF | 22.05 | ||
| P/B | 2.79 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 24.22 |
EPS(TTM)4.65
EY2.51%
EPS(NY)4.87
Fwd EY2.63%
FCF(TTM)-5.61
FCFYN/A
OCF(TTM)8.41
OCFY4.53%
SpS12.93
BVpS66.5
TBVpS63.46
PEG (NY)8.26
PEG (5Y)5.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 6.92% | ||
| ROCE | 5.43% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 4.47% | ||
| OM | 39.86% | ||
| PM (TTM) | 35.57% | ||
| GM | 72.79% | ||
| FCFM | N/A |
ROA(3y)4.51%
ROA(5y)4.48%
ROE(3y)8.05%
ROE(5y)8.54%
ROIC(3y)4.07%
ROIC(5y)3.99%
ROICexc(3y)4.09%
ROICexc(5y)4.01%
ROICexgc(3y)4.25%
ROICexgc(5y)4.15%
ROCE(3y)5.15%
ROCE(5y)5.06%
ROICexcg growth 3Y3.51%
ROICexcg growth 5Y2.84%
ROICexc growth 3Y3.33%
ROICexc growth 5Y2.72%
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 | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 366.57% | ||
| Cap/Sales | 108.45% | ||
| Interest Coverage | 6.86 | ||
| Cash Conversion | 93.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 3.24 |
F-Score5
WACC7.88%
ROIC/WACC0.54
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)5.44%
EPS 3Y6.13%
EPS 5Y7.49%
EPS Q2Q%-14.07%
EPS Next Y4.83%
EPS Next 2Y8.43%
EPS Next 3Y13.15%
EPS Next 5Y7.98%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y16.07%
Revenue growth 5Y14.08%
Sales Q2Q%9.99%
Revenue Next Year10.74%
Revenue Next 2Y10.38%
Revenue Next 3Y13.36%
Revenue Next 5Y12.72%
EBIT growth 1Y11.86%
EBIT growth 3Y19.14%
EBIT growth 5Y16.96%
EBIT Next Year74.57%
EBIT Next 3Y29.35%
EBIT Next 5YN/A
FCF growth 1Y-4.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.18%
OCF growth 3Y17.55%
OCF growth 5Y16.29%