ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPRT - US29670E1073 - REIT
29.47 USD
-0.46 (-1.54%)
29.47 USD
0 (0%)
Taking everything into account, EPRT scores 6 out of 10 in our fundamental rating. EPRT was compared to 127 industry peers in the Diversified REITs industry. While EPRT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EPRT 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 EPRT was profitable.
In the past year EPRT had a positive cash flow from operations.
In the past 5 years EPRT has always been profitable.
In the past 5 years EPRT always reported a positive cash flow from operatings.
1.2 Ratios
EPRT has a better Return On Assets (3.62%) than 79.53% of its industry peers.
EPRT's Return On Equity of 6.24% is fine compared to the rest of the industry. EPRT outperforms 73.23% of its industry peers.
EPRT has a Return On Invested Capital of 4.10%. This is in the better half of the industry: EPRT outperforms 79.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EPRT is in line with the industry average of 3.06%.
The 3 year average ROIC (3.68%) for EPRT is below the current ROIC(4.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.24% | ||
| ROIC | 4.1% |
ROA(3y)3.61%
ROA(5y)3.08%
ROE(3y)5.82%
ROE(5y)4.96%
ROIC(3y)3.68%
ROIC(5y)3.33%
1.3 Margins
EPRT's Profit Margin of 45.10% is amongst the best of the industry. EPRT outperforms 94.49% of its industry peers.
In the last couple of years the Profit Margin of EPRT has grown nicely.
The Operating Margin of EPRT (63.61%) is better than 98.43% of its industry peers.
EPRT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 98.70%, EPRT belongs to the best of the industry, outperforming 98.43% of the companies in the same industry.
EPRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.61% | ||
| PM (TTM) | 45.1% | ||
| GM | 98.7% |
OM growth 3Y3.86%
OM growth 5Y4.39%
PM growth 3Y2.82%
PM growth 5Y8.69%
GM growth 3Y0.46%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EPRT is destroying value.
Compared to 1 year ago, EPRT has more shares outstanding
The number of shares outstanding for EPRT has been increased compared to 5 years ago.
EPRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EPRT (1.51) is better than 92.13% of its industry peers.
EPRT has a Debt/Equity ratio of 0.69. This is a neutral value indicating EPRT is somewhat dependend on debt financing.
EPRT has a better Debt to Equity ratio (0.69) than 83.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.55
WACC7.41%
2.3 Liquidity
EPRT has a Current Ratio of 2.12. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EPRT (2.12) is better than 85.04% of its industry peers.
A Quick Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.12, EPRT belongs to the best of the industry, outperforming 85.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
EPRT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.83%.
EPRT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.89% yearly.
Looking at the last year, EPRT shows a very strong growth in Revenue. The Revenue has grown by 24.19%.
Measured over the past years, EPRT shows a very strong growth in Revenue. The Revenue has been growing by 26.39% on average per year.
EPS 1Y (TTM)7.83%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%22.22%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
3.2 Future
The Earnings Per Share is expected to grow by 6.48% on average over the next years.
The Revenue is expected to grow by 14.90% on average over the next years. This is quite good.
EPS Next Y11.84%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
EPS Next 5Y6.48%
Revenue Next Year24.13%
Revenue Next 2Y20.53%
Revenue Next 3Y18.8%
Revenue Next 5Y14.9%
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 decreasing.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.77, which indicates a rather expensive current valuation of EPRT.
EPRT's Price/Earnings ratio is a bit cheaper when compared to the industry. EPRT is cheaper than 75.59% of the companies in the same industry.
EPRT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.85, the valuation of EPRT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaper than 90.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, EPRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPRT indicates a slightly more expensive valuation: EPRT is more expensive than 70.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPRT does not grow enough to justify the current Price/Earnings ratio.
EPRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)2.18
EPS Next 2Y8.76%
EPS Next 3Y7.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, EPRT is a good candidate for dividend investing.
EPRT's Dividend Yield is slightly below the industry average, which is at 6.85.
Compared to an average S&P500 Dividend Yield of 1.90, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of EPRT has a limited annual growth rate of 2.50%.
EPRT has been paying a dividend for over 5 years, so it has already some track record.
As EPRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
EPRT pays out 94.03% of its income as dividend. This is not a sustainable payout ratio.
EPRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP94.03%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
29.47
-0.46 (-1.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.43%
Inst Owner Change0%
Ins Owners0.54%
Ins Owner Change0.58%
Market Cap5.84B
Revenue(TTM)531.06M
Net Income(TTM)239.51M
Analysts82.31
Price Target36.72 (24.6%)
Short Float %7.7%
Short Ratio8.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP94.03%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.72%
Min EPS beat(2)1.75%
Max EPS beat(2)3.7%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.51%
Max EPS beat(4)3.7%
EPS beat(8)3
Avg EPS beat(8)-0.42%
EPS beat(12)7
Avg EPS beat(12)6.58%
EPS beat(16)10
Avg EPS beat(16)6%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)2.1%
Max Revenue beat(2)2.53%
Revenue beat(4)3
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.55%
Revenue beat(8)7
Avg Revenue beat(8)1.22%
Revenue beat(12)9
Avg Revenue beat(12)0.99%
Revenue beat(16)11
Avg Revenue beat(16)0.66%
PT rev (1m)0%
PT rev (3m)0.58%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 21.85 | ||
| P/S | 11 | ||
| P/FCF | N/A | ||
| P/OCF | 16.09 | ||
| P/B | 1.52 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)1.24
EY4.21%
EPS(NY)1.35
Fwd EY4.58%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)1.83
OCFY6.22%
SpS2.68
BVpS19.36
TBVpS19.36
PEG (NY)2.01
PEG (5Y)2.18
Graham Number23.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.24% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.12% | ||
| OM | 63.61% | ||
| PM (TTM) | 45.1% | ||
| GM | 98.7% | ||
| FCFM | N/A |
ROA(3y)3.61%
ROA(5y)3.08%
ROE(3y)5.82%
ROE(5y)4.96%
ROIC(3y)3.68%
ROIC(5y)3.33%
ROICexc(3y)3.71%
ROICexc(5y)3.37%
ROICexgc(3y)3.74%
ROICexgc(5y)3.42%
ROCE(3y)4.65%
ROCE(5y)4.22%
ROICexgc growth 3Y6.53%
ROICexgc growth 5Y5.81%
ROICexc growth 3Y7.01%
ROICexc growth 5Y6.37%
OM growth 3Y3.86%
OM growth 5Y4.39%
PM growth 3Y2.82%
PM growth 5Y8.69%
GM growth 3Y0.46%
GM growth 5Y0.23%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 850.04% | ||
| Cap/Sales | 232.72% | ||
| Interest Coverage | 3.68 | ||
| Cash Conversion | 75.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 1.51 |
F-Score6
WACC7.41%
ROIC/WACC0.55
Cap/Depr(3y)916.8%
Cap/Depr(5y)983.03%
Cap/Sales(3y)264.22%
Cap/Sales(5y)300.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.83%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%22.22%
EPS Next Y11.84%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
EPS Next 5Y6.48%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
Revenue Next Year24.13%
Revenue Next 2Y20.53%
Revenue Next 3Y18.8%
Revenue Next 5Y14.9%
EBIT growth 1Y24.37%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year83.71%
EBIT Next 3Y35.99%
EBIT Next 5Y22.07%
FCF growth 1Y-20.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.27%
OCF growth 3Y22.6%
OCF growth 5Y28.34%
ESSENTIAL PROPERTIES REALTY / EPRT FAQ
What is the fundamental rating for EPRT stock?
ChartMill assigns a fundamental rating of 6 / 10 to EPRT.
What is the valuation status of ESSENTIAL PROPERTIES REALTY (EPRT) stock?
ChartMill assigns a valuation rating of 3 / 10 to ESSENTIAL PROPERTIES REALTY (EPRT). This can be considered as Overvalued.
What is the profitability of EPRT stock?
ESSENTIAL PROPERTIES REALTY (EPRT) has a profitability rating of 8 / 10.
What is the valuation of ESSENTIAL PROPERTIES REALTY based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSENTIAL PROPERTIES REALTY (EPRT) is 23.77 and the Price/Book (PB) ratio is 1.52.
How financially healthy is ESSENTIAL PROPERTIES REALTY?
The financial health rating of ESSENTIAL PROPERTIES REALTY (EPRT) is 5 / 10.