EASTGROUP PROPERTIES INC (EGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EGP - US2772761019 - REIT
179.45 USD
-1.09 (-0.6%)
179.69 USD
+0.24 (+0.13%)
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. EGP is valied quite expensively at the moment, while 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.
In the past 5 years EGP has always been profitable.
EGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EGP's Return On Assets of 4.64% is amongst the best of the industry. EGP outperforms 92.97% of its industry peers.
Looking at the Return On Equity, with a value of 7.08%, EGP belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
EGP's Return On Invested Capital of 4.43% is amongst the best of the industry. EGP outperforms 85.94% 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 3.06%.
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
EGP has a better Profit Margin (35.58%) than 89.06% 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 85.94% of its industry peers.
EGP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 73.30%, EGP is in the better half of 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.
EGP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EGP has more shares outstanding
The debt/assets ratio for EGP has been reduced compared to a year ago.
2.2 Solvency
EGP has an Altman-Z score of 3.26. This indicates that EGP is financially healthy and has little risk of bankruptcy at the moment.
EGP has a Altman-Z score of 3.26. This is amongst the best in the industry. EGP outperforms 98.44% 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 | 3.26 |
ROIC/WACC0.57
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.32 indicates that EGP may have some problems paying its short term obligations.
EGP has a Current ratio of 0.32. This is amonst the worse of the industry: EGP underperforms 85.16% of its industry peers.
A Quick Ratio of 0.32 indicates that EGP may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, EGP is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
| 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.
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)-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.
Based on estimates for the next years, EGP will show a quite strong growth in Revenue. The Revenue will grow by 11.35% on average per year.
EPS Next Y6.79%
EPS Next 2Y7.87%
EPS Next 3Y8.99%
EPS Next 5Y7.76%
Revenue Next Year11.9%
Revenue Next 2Y10.58%
Revenue Next 3Y10.54%
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
EGP is valuated quite expensively with a Price/Earnings ratio of 37.70.
60.16% of the companies in the same industry are more expensive than EGP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EGP to the average of the S&P500 Index (26.15), we can say EGP is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 33.17, the valuation of EGP can be described as expensive.
Based on the Price/Forward Earnings ratio, EGP is valued a bit cheaper than 73.44% of the companies in the same industry.
EGP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.7 | ||
| Fwd PE | 33.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGP is valued expensively inside the industry as 87.50% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.68 |
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)5.55
PEG (5Y)5.03
EPS Next 2Y7.87%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
EGP has a Yearly Dividend Yield of 3.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.34, EGP is paying slightly less dividend.
EGP's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
On average, the dividend of EGP grows each year by 11.97%, which is quite nice.
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 Years13
Div Non Decr Years33
5.3 Sustainability
116.28% of the earnings are spent on dividend by EGP. 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 2Y7.87%
EPS Next 3Y8.99%
179.45
-1.09 (-0.6%)
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 Change-0.22%
Market Cap9.57B
Revenue(TTM)697.91M
Net Income(TTM)248.31M
Analysts79.2
Price Target196.92 (9.74%)
Short Float %2.97%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)0.49%
PT rev (3m)2.82%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)5.08%
EPS NY rev (1m)3.73%
EPS NY rev (3m)4.52%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.7 | ||
| Fwd PE | 33.17 | ||
| P/S | 13.72 | ||
| P/FCF | N/A | ||
| P/OCF | 20.37 | ||
| P/B | 2.73 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 22.68 |
EPS(TTM)4.76
EY2.65%
EPS(NY)5.41
Fwd EY3.01%
FCF(TTM)-5.19
FCFYN/A
OCF(TTM)8.81
OCFY4.91%
SpS13.08
BVpS65.77
TBVpS62.88
PEG (NY)5.55
PEG (5Y)5.03
Graham Number83.93
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 | 3.26 |
F-Score5
WACC7.75%
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 5Y7.76%
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 5Y11.35%
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 37.7 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.