ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - NYSE:EPRT - US29670E1073 - REIT
29.57 USD
-0.52 (-1.73%)
29.57 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EPRT. EPRT was compared to 127 industry peers in the Diversified REITs industry. While EPRT has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, EPRT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EPRT had positive earnings in the past year.
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
With an excellent Return On Assets value of 3.62%, EPRT belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
The Return On Equity of EPRT (6.24%) is better than 73.23% of its industry peers.
EPRT's Return On Invested Capital of 4.10% is fine compared to the rest of the industry. EPRT outperforms 75.59% 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 3.07%.
The last Return On Invested Capital (4.10%) for EPRT is above the 3 year average (3.68%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 45.10%. This is amongst the best in the industry. EPRT outperforms 95.28% of its industry peers.
EPRT's Profit Margin has improved in the last couple of years.
The Operating Margin of EPRT (63.61%) is better than 98.43% of its industry peers.
In the last couple of years the Operating Margin of EPRT has grown nicely.
With an excellent Gross Margin value of 98.70%, EPRT belongs to the best of the industry, outperforming 99.21% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EPRT is destroying value.
The number of shares outstanding for EPRT has been increased compared to 1 year ago.
EPRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EPRT has a worse debt to assets ratio.
2.2 Solvency
EPRT has an Altman-Z score of 1.53. This is a bad value and indicates that EPRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.53, EPRT belongs to the top of the industry, outperforming 91.34% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that EPRT is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.69, EPRT belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.56
WACC7.38%
2.3 Liquidity
A Current Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.12, EPRT belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
A Quick Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
EPRT's Quick ratio of 2.12 is amongst the best of the industry. EPRT outperforms 82.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.83% over the past year.
EPRT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.89% yearly.
The Revenue has grown by 24.19% in the past year. This is a very strong growth!
The Revenue has been growing by 26.39% on average over the past years. This is a very strong growth!
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
EPRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.91% yearly.
The Revenue is expected to grow by 16.28% on average over the next years. This is quite good.
EPS Next Y11.31%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
EPS Next 5Y4.91%
Revenue Next Year22.68%
Revenue Next 2Y19.56%
Revenue Next 3Y17.86%
Revenue Next 5Y16.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.85, the valuation of EPRT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EPRT indicates a somewhat cheap valuation: EPRT is cheaper than 73.23% of the companies listed in the same industry.
EPRT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 22.00, which indicates a rather expensive current valuation of EPRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPRT indicates a rather cheap valuation: EPRT is cheaper than 88.98% of the companies listed in the same industry.
EPRT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 22 |
4.2 Price Multiples
EPRT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EPRT is more expensive than 78.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.73 |
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 EPRT may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)2.19
EPS Next 2Y8.59%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 4.01%, which is a nice return.
Compared to an average industry Dividend Yield of 6.33, EPRT is paying slightly less dividend.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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.
EPRT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
94.03% of the earnings are spent on dividend by EPRT. This is not a sustainable payout ratio.
The dividend of EPRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP94.03%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
29.57
-0.52 (-1.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners112.56%
Inst Owner Change-0.16%
Ins Owners0.61%
Ins Owner Change1.17%
Market Cap5.86B
Revenue(TTM)531.06M
Net Income(TTM)239.51M
Analysts81.67
Price Target36.72 (24.18%)
Short Float %6.61%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP94.03%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)0.78%
PT rev (3m)0.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 22 | ||
| P/S | 11.03 | ||
| P/FCF | N/A | ||
| P/OCF | 16.14 | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 17.73 |
EPS(TTM)1.24
EY4.19%
EPS(NY)1.34
Fwd EY4.55%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)1.83
OCFY6.2%
SpS2.68
BVpS19.36
TBVpS19.36
PEG (NY)2.11
PEG (5Y)2.19
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 | 1.53 |
F-Score6
WACC7.38%
ROIC/WACC0.56
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 Y11.31%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
EPS Next 5Y4.91%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
Revenue Next Year22.68%
Revenue Next 2Y19.56%
Revenue Next 3Y17.86%
Revenue Next 5Y16.28%
EBIT growth 1Y24.37%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year82.62%
EBIT Next 3Y35.08%
EBIT Next 5Y29.16%
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.
Can you provide the valuation status for ESSENTIAL PROPERTIES REALTY?
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 financial health of ESSENTIAL PROPERTIES REALTY (EPRT) stock?
The financial health rating of ESSENTIAL PROPERTIES REALTY (EPRT) is 5 / 10.
What is the expected EPS growth for ESSENTIAL PROPERTIES REALTY (EPRT) stock?
The Earnings per Share (EPS) of ESSENTIAL PROPERTIES REALTY (EPRT) is expected to grow by 11.31% in the next year.