EPR PROPERTIES (EPR) Stock Fundamental Analysis
NYSE:EPR - New York Stock Exchange, Inc. - US26884U1097 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to EPR. EPR was compared to 30 industry peers in the Specialized REITs industry. While EPR is still in line with the averages on profitability rating, there are concerns on its financial health. EPR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EPR had positive earnings in the past year.
EPR had a positive operating cash flow in the past year.
EPR had positive earnings in 4 of the past 5 years.
In the past 5 years EPR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.26%, EPR is in line with its industry, outperforming 53.33% of the companies in the same industry.
With a Return On Equity value of 5.39%, EPR perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.66%, EPR is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
EPR had an Average Return On Invested Capital over the past 3 years of 5.38%. This is in line with the industry average of 5.28%.
The 3 year average ROIC (5.38%) for EPR is below the current ROIC(5.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 5.39% | ||
| ROIC | 5.66% |
ROA(3y)2.47%
ROA(5y)1.28%
ROE(3y)5.77%
ROE(5y)2.85%
ROIC(3y)5.38%
ROIC(5y)4.15%
1.3 Margins
With a Profit Margin value of 17.71%, EPR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
EPR's Profit Margin has declined in the last couple of years.
EPR has a better Operating Margin (52.66%) than 83.33% of its industry peers.
EPR's Operating Margin has improved in the last couple of years.
EPR's Gross Margin of 95.33% is amongst the best of the industry. EPR outperforms 90.00% of its industry peers.
In the last couple of years the Gross Margin of EPR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.66% | ||
| PM (TTM) | 17.71% | ||
| GM | 95.33% |
OM growth 3Y8.75%
OM growth 5Y3%
PM growth 3Y7.63%
PM growth 5Y-8.57%
GM growth 3Y0.59%
GM growth 5Y0.18%
2. Health
2.1 Basic Checks
EPR 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 EPR has been increased compared to 1 year ago.
The number of shares outstanding for EPR has been reduced compared to 5 years ago.
The debt/assets ratio for EPR is higher compared to a year ago.
2.2 Solvency
EPR has an Altman-Z score of 0.81. This is a bad value and indicates that EPR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.81, EPR is doing worse than 60.00% of the companies in the same industry.
EPR has a debt to FCF ratio of 9.88. This is a negative value and a sign of low solvency as EPR would need 9.88 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.88, EPR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that EPR has dependencies on debt financing.
EPR has a Debt to Equity ratio of 1.20. This is comparable to the rest of the industry: EPR outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 9.88 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.76
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.43 indicates that EPR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.43, EPR is doing worse than 66.67% of the companies in the same industry.
EPR has a Quick Ratio of 0.43. This is a bad value and indicates that EPR is not financially healthy enough and could expect problems in meeting its short term obligations.
EPR has a Quick ratio of 0.43. This is in the lower half of the industry: EPR underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for EPR have decreased strongly by -37.79% in the last year.
The earnings per share for EPR have been decreasing by -10.07% on average. This is quite bad
EPR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.62%.
EPR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.39% yearly.
EPS 1Y (TTM)-37.79%
EPS 3Y17.35%
EPS 5Y-10.07%
EPS Q2Q%4%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y9.5%
Revenue growth 5Y1.39%
Sales Q2Q%4.66%
3.2 Future
EPR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.11% yearly.
EPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
EPS Next Y85.48%
EPS Next 2Y36.79%
EPS Next 3Y26.11%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y5.59%
Revenue Next 3Y1.86%
Revenue Next 5Y3.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.50, which means the current valuation is very expensive for EPR.
The rest of the industry has a similar Price/Earnings ratio as EPR.
The average S&P500 Price/Earnings ratio is at 27.45. EPR is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 19.88, EPR is valued on the expensive side.
Based on the Price/Forward Earnings ratio, EPR is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. EPR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.5 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than EPR, based on the Enterprise Value to EBITDA ratio.
EPR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EPR is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EPR may justify a higher PE ratio.
A more expensive valuation may be justified as EPR's earnings are expected to grow with 26.11% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y36.79%
EPS Next 3Y26.11%
5. Dividend
5.1 Amount
EPR has a Yearly Dividend Yield of 5.95%, which is a nice return.
EPR's Dividend Yield is a higher than the industry average which is at 5.78.
Compared to an average S&P500 Dividend Yield of 2.38, EPR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
5.2 History
The dividend of EPR decreases each year by -5.07%.
EPR has been paying a dividend for at least 10 years, so it has a reliable track record.
EPR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.07%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EPR pays out 225.96% of its income as dividend. This is not a sustainable payout ratio.
DP225.96%
EPS Next 2Y36.79%
EPS Next 3Y26.11%
59.5
+0.48 (+0.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.68%
Inst Owner Change-49.5%
Ins Owners2.16%
Ins Owner Change17.38%
Market Cap4.53B
Analysts72.94
Price Target56 (-5.88%)
Short Float %4.83%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
Yearly Dividend3.71
Dividend Growth(5Y)-5.07%
DP225.96%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-52.49%
Min EPS beat(2)-129.26%
Max EPS beat(2)24.27%
EPS beat(4)1
Avg EPS beat(4)-37.99%
Min EPS beat(4)-129.26%
Max EPS beat(4)24.27%
EPS beat(8)3
Avg EPS beat(8)-19.05%
EPS beat(12)5
Avg EPS beat(12)-14.07%
EPS beat(16)9
Avg EPS beat(16)357.28%
Revenue beat(2)2
Avg Revenue beat(2)5.33%
Min Revenue beat(2)4.67%
Max Revenue beat(2)5.99%
Revenue beat(4)4
Avg Revenue beat(4)4.65%
Min Revenue beat(4)3.12%
Max Revenue beat(4)5.99%
Revenue beat(8)7
Avg Revenue beat(8)5.54%
Revenue beat(12)11
Avg Revenue beat(12)8.55%
Revenue beat(16)15
Avg Revenue beat(16)9.69%
PT rev (1m)5.58%
PT rev (3m)5.58%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)2.65%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.5 | ||
| Fwd PE | 19.88 | ||
| P/S | 6.41 | ||
| P/FCF | 16.02 | ||
| P/OCF | 11.52 | ||
| P/B | 1.95 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 13.56 |
EPS(TTM)1.63
EY2.74%
EPS(NY)2.99
Fwd EY5.03%
FCF(TTM)3.71
FCFY6.24%
OCF(TTM)5.17
OCFY8.68%
SpS9.28
BVpS30.51
TBVpS30.07
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 5.39% | ||
| ROCE | 7.16% | ||
| ROIC | 5.66% | ||
| ROICexc | 5.68% | ||
| ROICexgc | 5.72% | ||
| OM | 52.66% | ||
| PM (TTM) | 17.71% | ||
| GM | 95.33% | ||
| FCFM | 40.03% |
ROA(3y)2.47%
ROA(5y)1.28%
ROE(3y)5.77%
ROE(5y)2.85%
ROIC(3y)5.38%
ROIC(5y)4.15%
ROICexc(3y)5.45%
ROICexc(5y)4.28%
ROICexgc(3y)5.51%
ROICexgc(5y)4.33%
ROCE(3y)6.81%
ROCE(5y)5.25%
ROICexcg growth 3Y19.26%
ROICexcg growth 5Y6.31%
ROICexc growth 3Y18.72%
ROICexc growth 5Y6.03%
OM growth 3Y8.75%
OM growth 5Y3%
PM growth 3Y7.63%
PM growth 5Y-8.57%
GM growth 3Y0.59%
GM growth 5Y0.18%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 9.88 | ||
| Debt/EBITDA | 5.19 | ||
| Cap/Depr | 66.37% | ||
| Cap/Sales | 15.64% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 73.04% | ||
| Profit Quality | 226.02% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.81 |
F-Score5
WACC7.49%
ROIC/WACC0.76
Cap/Depr(3y)110.86%
Cap/Depr(5y)86.3%
Cap/Sales(3y)26.92%
Cap/Sales(5y)23.2%
Profit Quality(3y)175.09%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.79%
EPS 3Y17.35%
EPS 5Y-10.07%
EPS Q2Q%4%
EPS Next Y85.48%
EPS Next 2Y36.79%
EPS Next 3Y26.11%
EPS Next 5YN/A
Revenue 1Y (TTM)0.62%
Revenue growth 3Y9.5%
Revenue growth 5Y1.39%
Sales Q2Q%4.66%
Revenue Next Year8.49%
Revenue Next 2Y5.59%
Revenue Next 3Y1.86%
Revenue Next 5Y3.99%
EBIT growth 1Y0.6%
EBIT growth 3Y19.08%
EBIT growth 5Y4.44%
EBIT Next Year56.01%
EBIT Next 3Y19.18%
EBIT Next 5YN/A
FCF growth 1Y89.04%
FCF growth 3Y3.51%
FCF growth 5YN/A
OCF growth 1Y-9.7%
OCF growth 3Y8.6%
OCF growth 5Y-2.2%