EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EGP - US2772761019 - REIT
178.56 USD
+0.92 (+0.52%)
178.56 USD
0 (0%)
Taking everything into account, EGP scores 5 out of 10 in our fundamental rating. EGP was compared to 124 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- EGP had positive earnings in the past year.
- EGP had a positive operating cash flow in the past year.
- 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
- EGP has a Return On Assets of 4.64%. This is amongst the best in the industry. EGP outperforms 90.32% of its industry peers.
- With a decent Return On Equity value of 7.08%, EGP is doing good in the industry, outperforming 78.23% of the companies in the same industry.
- EGP has a Return On Invested Capital of 4.43%. This is amongst the best in the industry. EGP outperforms 85.48% of its industry peers.
- 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 3.05%.
- 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
- With an excellent Profit Margin value of 35.58%, EGP belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
- 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 39.91%. This is amongst the best in the industry. EGP outperforms 86.29% of its industry peers.
- EGP's Operating Margin has improved in the last couple of years.
- The Gross Margin of EGP (73.30%) is better than 66.13% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EGP is destroying value.
- Compared to 1 year ago, EGP has more shares outstanding
- Compared to 5 years ago, EGP has more shares outstanding
- EGP has a better debt/assets ratio than last year.
2.2 Solvency
- EGP has an Altman-Z score of 3.21. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.21, EGP belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
- A Debt/Equity ratio of 0.39 indicates that EGP is not too dependend on debt financing.
- The Debt to Equity ratio of EGP (0.39) is better than 94.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.21 |
ROIC/WACC0.56
WACC7.86%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that EGP may have some problems paying its short term obligations.
- EGP has a worse Current ratio (0.32) than 85.48% of its industry peers.
- A Quick Ratio of 0.32 indicates that EGP may have some problems paying its short term obligations.
- The Quick ratio of EGP (0.32) is worse than 84.68% 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%.
- The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
- EGP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.61%.
- 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 7.76% on average per year.
- 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.
- 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 37.51, the valuation of EGP can be described as expensive.
- EGP's Price/Earnings ratio is in line with the industry average.
- EGP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.87.
- With a Price/Forward Earnings ratio of 34.05, EGP can be considered very expensive at the moment.
- 72.58% of the companies in the same industry are more expensive than EGP, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. EGP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.51 | ||
| Fwd PE | 34.05 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGP indicates a rather expensive valuation: EGP more expensive than 84.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.37 |
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)5.87
PEG (5Y)5.01
EPS Next 2Y6.2%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
- EGP has a Yearly Dividend Yield of 3.45%.
- EGP's Dividend Yield is slightly below the industry average, which is at 6.82.
- EGP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 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.
- EGP's earnings are growing slower than its dividend. 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 37.51 and the Price/Book (PB) ratio is 2.72.
Can you provide the financial health for EGP stock?
The financial health rating of EASTGROUP PROPERTIES INC (EGP) is 3 / 10.