ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPRT - US29670E1073 - REIT
30.18 USD
-0.15 (-0.49%)
30.18 USD
0 (0%)
Taking everything into account, EPRT scores 6 out of 10 in our fundamental rating. EPRT was compared to 124 industry peers in the Diversified REITs industry. EPRT scores excellent on profitability, 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.
- EPRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EPRT's Return On Assets of 3.62% is fine compared to the rest of the industry. EPRT outperforms 79.84% of its industry peers.
- EPRT has a better Return On Equity (6.24%) than 73.39% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.10%, EPRT is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
- EPRT had an Average Return On Invested Capital over the past 3 years of 3.68%. This is in line with the industry average of 3.05%.
- 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 better Profit Margin (45.10%) than 95.16% of its industry peers.
- In the last couple of years the Profit Margin of EPRT has grown nicely.
- EPRT has a better Operating Margin (63.61%) than 99.19% of its industry peers.
- In the last couple of years the Operating Margin of EPRT has grown nicely.
- The Gross Margin of EPRT (98.70%) is better than 98.39% 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
- EPRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for EPRT has been increased compared to 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
- EPRT has an Altman-Z score of 1.54. This is a bad value and indicates that EPRT is not financially healthy and even has some risk of bankruptcy.
- EPRT's Altman-Z score of 1.54 is amongst the best of the industry. EPRT outperforms 91.13% 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.
- The Debt to Equity ratio of EPRT (0.69) is better than 84.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC0.55
WACC7.47%
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.
- EPRT has a better Current ratio (2.12) than 84.68% of its industry peers.
- EPRT has a Quick Ratio of 2.12. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of EPRT (2.12) is better than 84.68% 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.
- The Earnings Per Share has been growing by 10.89% on average over the past years. This is quite good.
- EPRT shows a strong growth in Revenue. In the last year, 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
- Based on estimates for the next years, EPRT will show a small growth in Earnings Per Share. The EPS will grow by 6.48% on average per year.
- The Revenue is expected to grow by 14.90% on average over the next years. This is quite good.
EPS Next Y12.51%
EPS Next 2Y9.8%
EPS Next 3Y7.93%
EPS Next 5Y6.48%
Revenue Next Year24.36%
Revenue Next 2Y20.91%
Revenue Next 3Y19.35%
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.
- 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
- A Price/Earnings ratio of 24.34 indicates a rather expensive valuation of EPRT.
- Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than 75.81% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. EPRT is around the same levels.
- EPRT is valuated rather expensively with a Price/Forward Earnings ratio of 21.96.
- 91.13% of the companies in the same industry are more expensive than EPRT, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. EPRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.34 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
- 72.58% of the companies in the same industry are cheaper than EPRT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.83 |
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)1.95
PEG (5Y)2.24
EPS Next 2Y9.8%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.09%, EPRT is a good candidate for dividend investing.
- EPRT's Dividend Yield is slightly below the industry average, which is at 6.82.
- EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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 2Y9.8%
EPS Next 3Y7.93%
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 24.34 and the Price/Book (PB) ratio is 1.56.
How financially healthy is ESSENTIAL PROPERTIES REALTY?
The financial health rating of ESSENTIAL PROPERTIES REALTY (EPRT) is 5 / 10.