ESSENTIAL PROPERTIES REALTY (EPRT)
US29670E1073 - REIT
We assign a fundamental rating of 6 out of 10 to EPRT. EPRT was compared to 129 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.
EPRT had a positive operating cash flow in the past year.
In the past 5 years EPRT has always been profitable.
EPRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.55%, EPRT belongs to the best of the industry, outperforming 85.04% of the companies in the same industry.
EPRT's Return On Equity of 6.15% is fine compared to the rest of the industry. EPRT outperforms 77.95% of its industry peers.
EPRT has a Return On Invested Capital of 3.94%. This is in the better half of the industry: EPRT outperforms 77.95% of its industry peers.
EPRT had an Average Return On Invested Capital over the past 3 years of 3.42%. This is in line with the industry average of 3.08%.
The last Return On Invested Capital (3.94%) for EPRT is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.15% | ||
| ROIC | 3.94% |
ROA(3y)3.41%
ROA(5y)2.8%
ROE(3y)5.48%
ROE(5y)4.52%
ROIC(3y)3.42%
ROIC(5y)3.12%
1.3 Margins
EPRT's Profit Margin of 45.90% is amongst the best of the industry. EPRT outperforms 94.49% of its industry peers.
EPRT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 63.51%, EPRT belongs to the best of the industry, outperforming 98.43% of the companies in the same industry.
EPRT's Operating Margin has improved in the last couple of years.
The Gross Margin of EPRT (98.83%) is better than 100.00% of its industry peers.
EPRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.51% | ||
| PM (TTM) | 45.9% | ||
| GM | 98.83% |
OM growth 3Y10.35%
OM growth 5Y3.85%
PM growth 3Y27.47%
PM growth 5Y27.18%
GM growth 3Y0.37%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EPRT is destroying value.
Compared to 1 year ago, EPRT has more shares outstanding
Compared to 5 years ago, EPRT has more shares outstanding
Compared to 1 year ago, EPRT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.74, EPRT belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
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 Debt to Equity ratio of 0.69. This is in the better half of the industry: EPRT outperforms 76.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.51
WACC7.69%
2.3 Liquidity
EPRT has a Current Ratio of 2.06. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT has a Current ratio of 2.06. This is in the better half of the industry: EPRT outperforms 77.17% of its industry peers.
EPRT has a Quick Ratio of 2.06. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT has a better Quick ratio (2.06) than 77.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
EPRT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.54%.
The Earnings Per Share has been growing by 37.84% on average over the past years. This is a very strong growth
Looking at the last year, EPRT shows a very strong growth in Revenue. The Revenue has grown by 27.22%.
EPRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.18% yearly.
EPS 1Y (TTM)-2.54%
EPS 3Y41.25%
EPS 5Y37.84%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)27.22%
Revenue growth 3Y29.91%
Revenue growth 5Y30.18%
Sales Q2Q%27.79%
3.2 Future
EPRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.81% yearly.
Based on estimates for the next years, EPRT will show a quite strong growth in Revenue. The Revenue will grow by 17.02% on average per year.
EPS Next Y-2.52%
EPS Next 2Y2.21%
EPS Next 3Y2.39%
EPS Next 5Y1.81%
Revenue Next Year25.98%
Revenue Next 2Y22.32%
Revenue Next 3Y18.72%
Revenue Next 5Y17.02%
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
Based on the Price/Earnings ratio of 29.13, the valuation of EPRT can be described as expensive.
Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than the industry average as 70.87% of the companies are valued more expensively.
EPRT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
The Price/Forward Earnings ratio is 25.86, which means the current valuation is very expensive for EPRT.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaply inside the industry as 86.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, EPRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 25.86 |
4.2 Price Multiples
EPRT's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EPRT is more expensive than 85.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.7 |
4.3 Compensation for Growth
The excellent profitability rating of EPRT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y2.21%
EPS Next 3Y2.39%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.55%.
Compared to an average industry Dividend Yield of 6.55, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.23, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of EPRT is nicely growing with an annual growth rate of 6.90%!
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)6.9%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
EPRT pays out 98.06% of its income as dividend. This is not a sustainable payout ratio.
EPRT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP98.06%
EPS Next 2Y2.21%
EPS Next 3Y2.39%
ESSENTIAL PROPERTIES REALTY
NYSE:EPRT (11/21/2024, 8:24:55 PM)
After market: 32.98 -0.52 (-1.55%)33.5
-0.06 (-0.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 25.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 63.51% | ||
| PM (TTM) | 45.9% | ||
| GM | 98.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.54%
EPS 3Y41.25%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.22%
Revenue growth 3Y29.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y