ESSENTIAL PROPERTIES REALTY (EPRT)
US29670E1073 - REIT
EPRT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. EPRT has an excellent profitability rating, but 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
In the past year EPRT was profitable.
EPRT had a positive operating cash flow in the past year.
EPRT had positive earnings in each of the past 5 years.
Each year in the past 5 years EPRT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EPRT (3.55%) is better than 85.16% of its industry peers.
The Return On Equity of EPRT (6.15%) is better than 76.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.94%, EPRT is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPRT is in line with the industry average of 3.08%.
The 3 year average ROIC (3.42%) for EPRT is below the current ROIC(3.94%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (45.90%) than 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 63.51% is amongst the best of the industry. EPRT outperforms 98.44% of its industry peers.
In the last couple of years the Operating Margin of EPRT has grown nicely.
EPRT has a better Gross Margin (98.83%) 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
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
EPRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EPRT has an improved debt to assets ratio.
2.2 Solvency
EPRT has an Altman-Z score of 1.65. 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 1.65, EPRT belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that EPRT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, EPRT is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC0.51
WACC7.71%
2.3 Liquidity
A Current Ratio of 2.06 indicates that EPRT has no problem at all paying its short term obligations.
The Current ratio of EPRT (2.06) is better than 76.56% 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.
The Quick ratio of EPRT (2.06) is better than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The earnings per share for EPRT have decreased by -2.54% in the last year.
The Earnings Per Share has been growing by 37.84% on average over the past years. This is a very strong growth
The Revenue has grown by 27.22% in the past year. This is a very strong growth!
The Revenue has been growing by 30.18% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 3.30% on average over the next years.
The Revenue is expected to grow by 18.24% on average over the next years. This is quite good.
EPS Next Y-4.99%
EPS Next 2Y2.21%
EPS Next 3Y2.26%
EPS Next 5Y3.3%
Revenue Next Year26.21%
Revenue Next 2Y22.63%
Revenue Next 3Y19.91%
Revenue Next 5Y18.24%
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
The Price/Earnings ratio is 27.42, which means the current valuation is very expensive for EPRT.
EPRT's Price/Earnings ratio is a bit cheaper when compared to the industry. EPRT is cheaper than 70.31% 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 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.34, the valuation of EPRT can be described as rather expensive.
EPRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EPRT is cheaper than 85.16% of the companies in the same industry.
EPRT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 24.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPRT is valued expensively inside the industry as 82.81% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.81 |
4.3 Compensation for Growth
EPRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y2.21%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 16.05, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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.
As EPRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.9%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
98.06% of the earnings are spent on dividend by EPRT. This is not a sustainable payout ratio.
The dividend of EPRT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP98.06%
EPS Next 2Y2.21%
EPS Next 3Y2.26%
ESSENTIAL PROPERTIES REALTY
NYSE:EPRT (12/20/2024, 8:07:20 PM)
After market: 31.53 0 (0%)31.53
+0.71 (+2.3%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners112.15%
Inst Owner Change3.72%
Ins Owners0.66%
Ins Owner Change-8.64%
Market Cap5.53B
Analysts83.64
Price Target36.31 (15.16%)
Short Float %11.66%
Short Ratio19.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Dividend Growth(5Y)6.9%
DP98.06%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8%
Min EPS beat(2)-13.21%
Max EPS beat(2)-2.8%
EPS beat(4)1
Avg EPS beat(4)-0.25%
Min EPS beat(4)-13.21%
Max EPS beat(4)15.78%
EPS beat(8)5
Avg EPS beat(8)10.16%
EPS beat(12)8
Avg EPS beat(12)8.2%
EPS beat(16)11
Avg EPS beat(16)6.4%
Revenue beat(2)2
Avg Revenue beat(2)0.91%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.53%
Revenue beat(4)4
Avg Revenue beat(4)1.15%
Min Revenue beat(4)0.3%
Max Revenue beat(4)2.35%
Revenue beat(8)6
Avg Revenue beat(8)0.84%
Revenue beat(12)8
Avg Revenue beat(12)0.46%
Revenue beat(16)11
Avg Revenue beat(16)0.96%
PT rev (1m)3.5%
PT rev (3m)9.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)-2.53%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 24.34 | ||
| P/S | 12.93 | ||
| P/FCF | N/A | ||
| P/OCF | 18.8 | ||
| P/B | 1.73 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 19.81 |
EPS(TTM)1.15
EY3.65%
EPS(NY)1.3
Fwd EY4.11%
FCF(TTM)-4.48
FCFYN/A
OCF(TTM)1.68
OCFY5.32%
SpS2.44
BVpS18.21
TBVpS18.21
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.15% | ||
| ROCE | 4.98% | ||
| ROIC | 3.94% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 3.97% | ||
| OM | 63.51% | ||
| PM (TTM) | 45.9% | ||
| GM | 98.83% | ||
| FCFM | N/A |
ROA(3y)3.41%
ROA(5y)2.8%
ROE(3y)5.48%
ROE(5y)4.52%
ROIC(3y)3.42%
ROIC(5y)3.12%
ROICexc(3y)3.47%
ROICexc(5y)3.16%
ROICexgc(3y)3.51%
ROICexgc(5y)3.22%
ROCE(3y)4.33%
ROCE(5y)3.96%
ROICexcg growth 3Y14.66%
ROICexcg growth 5Y5.03%
ROICexc growth 3Y15.31%
ROICexc growth 5Y5.7%
OM growth 3Y10.35%
OM growth 5Y3.85%
PM growth 3Y27.47%
PM growth 5Y27.18%
GM growth 3Y0.37%
GM growth 5Y0.16%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.66 | ||
| Cap/Depr | 925.16% | ||
| Cap/Sales | 252.58% | ||
| Interest Coverage | 4.13 | ||
| Cash Conversion | 75.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 1.65 |
F-Score6
WACC7.71%
ROIC/WACC0.51
Cap/Depr(3y)1029.4%
Cap/Depr(5y)1080.11%
Cap/Sales(3y)306.48%
Cap/Sales(5y)336%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.54%
EPS 3Y41.25%
EPS 5Y37.84%
EPS Q2Q%-6.9%
EPS Next Y-4.99%
EPS Next 2Y2.21%
EPS Next 3Y2.26%
EPS Next 5Y3.3%
Revenue 1Y (TTM)27.22%
Revenue growth 3Y29.91%
Revenue growth 5Y30.18%
Sales Q2Q%27.79%
Revenue Next Year26.21%
Revenue Next 2Y22.63%
Revenue Next 3Y19.91%
Revenue Next 5Y18.24%
EBIT growth 1Y33.55%
EBIT growth 3Y43.36%
EBIT growth 5Y35.19%
EBIT Next Year82.89%
EBIT Next 3Y37.11%
EBIT Next 5Y30.47%
FCF growth 1Y-36.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.37%
OCF growth 3Y36.82%
OCF growth 5Y40.86%