ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPRT - US29670E1073 - REIT
31.47 USD
+0.03 (+0.1%)
31.47 USD
0 (0%)
EPRT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. While EPRT has a great profitability rating, there are some minor concerns on its financial health. EPRT is quite expensive at the moment. It does show a decent growth rate.
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.
EPRT had positive earnings in each of the past 5 years.
EPRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EPRT (3.62%) is better than 83.59% of its industry peers.
EPRT has a Return On Equity of 6.24%. This is in the better half of the industry: EPRT outperforms 75.78% of its industry peers.
EPRT has a better Return On Invested Capital (4.10%) than 76.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPRT is in line with the industry average of 3.06%.
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's Profit Margin of 45.10% is amongst the best of the industry. EPRT outperforms 94.53% of its industry peers.
In the last couple of years the Profit Margin of EPRT has grown nicely.
EPRT's Operating Margin of 63.61% is amongst the best of the industry. EPRT outperforms 98.44% of its industry peers.
EPRT's Operating Margin has improved in the last couple of years.
The Gross Margin of EPRT (98.70%) is better than 97.66% of its industry peers.
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.
EPRT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EPRT has been increased compared to 5 years ago.
The debt/assets ratio for EPRT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.59, EPRT belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that EPRT is somewhat dependend on debt financing.
EPRT has a better Debt to Equity ratio (0.69) than 83.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.56
WACC7.34%
2.3 Liquidity
A Current Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
EPRT's Current ratio of 2.12 is amongst the best of the industry. EPRT outperforms 83.59% of its industry peers.
A Quick Ratio of 2.12 indicates that EPRT has no problem at all paying its short term obligations.
EPRT has a better Quick ratio (2.12) than 83.59% 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
Based on estimates for the next years, EPRT will show a small growth in Earnings Per Share. The EPS will grow by 4.91% on average per year.
Based on estimates for the next years, EPRT will show a quite strong growth in Revenue. The Revenue will grow by 14.61% on average per year.
EPS Next Y11.31%
EPS Next 2Y8.59%
EPS Next 3Y7.09%
EPS Next 5Y4.91%
Revenue Next Year23.14%
Revenue Next 2Y20.15%
Revenue Next 3Y18.2%
Revenue Next 5Y14.61%
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
With a Price/Earnings ratio of 25.38, EPRT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of EPRT indicates a somewhat cheap valuation: EPRT is cheaper than 75.00% 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 26.15.
Based on the Price/Forward Earnings ratio of 23.41, the valuation of EPRT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPRT indicates a rather cheap valuation: EPRT is cheaper than 89.84% of the companies listed in the same industry.
EPRT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 23.41 |
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 78.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EPRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)2.33
EPS Next 2Y8.59%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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
EPRT pays out 94.03% of its income as dividend. 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%
31.47
+0.03 (+0.1%)
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 Change0.02%
Ins Owners0.61%
Ins Owner Change-0.22%
Market Cap6.24B
Revenue(TTM)531.06M
Net Income(TTM)239.51M
Analysts82.31
Price Target36.67 (16.52%)
Short Float %7.04%
Short Ratio7.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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)0.44%
PT rev (3m)0.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 23.41 | ||
| P/S | 11.74 | ||
| P/FCF | N/A | ||
| P/OCF | 17.18 | ||
| P/B | 1.63 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 18.3 |
EPS(TTM)1.24
EY3.94%
EPS(NY)1.34
Fwd EY4.27%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)1.83
OCFY5.82%
SpS2.68
BVpS19.36
TBVpS19.36
PEG (NY)2.24
PEG (5Y)2.33
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 | 1.59 |
F-Score6
WACC7.34%
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 Year23.14%
Revenue Next 2Y20.15%
Revenue Next 3Y18.2%
Revenue Next 5Y14.61%
EBIT growth 1Y24.37%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year82.62%
EBIT Next 3Y35.08%
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.
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.