ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - NYSE:EPRT - US29670E1073 - REIT
30.19 USD
+0.27 (+0.9%)
30.19 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to EPRT. EPRT was compared to 130 industry peers in the Diversified REITs industry. While EPRT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EPRT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EPRT was profitable.
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
EPRT has a better Return On Assets (3.55%) than 83.85% of its industry peers.
EPRT's Return On Equity of 5.83% is fine compared to the rest of the industry. EPRT outperforms 70.00% of its industry peers.
EPRT's Return On Invested Capital of 4.08% is fine compared to the rest of the industry. EPRT outperforms 75.38% 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 3.05%.
The 3 year average ROIC (3.68%) for EPRT is below the current ROIC(4.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.83% | ||
| ROIC | 4.08% |
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
With an excellent Profit Margin value of 44.34%, EPRT belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
In the last couple of years the Profit Margin of EPRT has grown nicely.
EPRT has a Operating Margin of 63.55%. This is amongst the best in the industry. EPRT outperforms 98.46% of its industry peers.
EPRT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 98.69%, EPRT belongs to the top of the industry, outperforming 99.23% of the companies in the same industry.
In the last couple of years the Gross Margin of EPRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.55% | ||
| PM (TTM) | 44.34% | ||
| GM | 98.69% |
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.
Compared to 1 year ago, EPRT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
EPRT has a better Altman-Z score (1.69) than 92.31% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that EPRT is somewhat dependend on debt financing.
EPRT's Debt to Equity ratio of 0.61 is amongst the best of the industry. EPRT outperforms 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC0.55
WACC7.35%
2.3 Liquidity
EPRT has a Current Ratio of 2.01. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT has a Current ratio of 2.01. This is amongst the best in the industry. EPRT outperforms 80.77% of its industry peers.
EPRT has a Quick Ratio of 2.01. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT's Quick ratio of 2.01 is amongst the best of the industry. EPRT outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.85% over the past year.
Measured over the past years, EPRT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.89% on average per year.
The Revenue has grown by 25.14% in the past year. This is a very strong growth!
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)0.85%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%10.34%
Revenue 1Y (TTM)25.14%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%25.44%
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 5.05% on average per year.
EPRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.66% yearly.
EPS Next Y12.74%
EPS Next 2Y9.25%
EPS Next 3Y7.41%
EPS Next 5Y5.05%
Revenue Next Year22.55%
Revenue Next 2Y19.6%
Revenue Next 3Y18.27%
Revenue Next 5Y16.66%
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
EPRT is valuated quite expensively with a Price/Earnings ratio of 25.58.
Compared to the rest of the industry, the Price/Earnings ratio of EPRT indicates a somewhat cheap valuation: EPRT is cheaper than 71.54% of the companies listed in the same industry.
EPRT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.19 indicates a rather expensive valuation of EPRT.
90.77% 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 22.88. EPRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 22.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPRT is valued a bit more expensive than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18 |
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)2.01
PEG (5Y)2.35
EPS Next 2Y9.25%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, EPRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
97.03% of the earnings are spent on dividend by EPRT. This is not a sustainable payout ratio.
EPRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.03%
EPS Next 2Y9.25%
EPS Next 3Y7.41%
30.19
+0.27 (+0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.62%
Inst Owner Change1.09%
Ins Owners0.61%
Ins Owner Change-3.58%
Market Cap5.98B
Analysts81.67
Price Target36.44 (20.7%)
Short Float %5.9%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP97.03%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.77%
Min EPS beat(2)-3.29%
Max EPS beat(2)1.75%
EPS beat(4)1
Avg EPS beat(4)-4.82%
Min EPS beat(4)-13.21%
Max EPS beat(4)1.75%
EPS beat(8)3
Avg EPS beat(8)0.03%
EPS beat(12)7
Avg EPS beat(12)6.79%
EPS beat(16)10
Avg EPS beat(16)7.35%
Revenue beat(2)2
Avg Revenue beat(2)2.33%
Min Revenue beat(2)2.1%
Max Revenue beat(2)2.55%
Revenue beat(4)3
Avg Revenue beat(4)1.04%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.55%
Revenue beat(8)6
Avg Revenue beat(8)0.89%
Revenue beat(12)8
Avg Revenue beat(12)0.27%
Revenue beat(16)11
Avg Revenue beat(16)0.76%
PT rev (1m)-0.23%
PT rev (3m)-0.81%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0.53%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 22.19 | ||
| P/S | 11.89 | ||
| P/FCF | N/A | ||
| P/OCF | 17.72 | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 18 |
EPS(TTM)1.18
EY3.91%
EPS(NY)1.36
Fwd EY4.51%
FCF(TTM)-4.28
FCFYN/A
OCF(TTM)1.7
OCFY5.64%
SpS2.54
BVpS19.33
TBVpS19.33
PEG (NY)2.01
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.83% | ||
| ROCE | 5.16% | ||
| ROIC | 4.08% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 4.1% | ||
| OM | 63.55% | ||
| PM (TTM) | 44.34% | ||
| GM | 98.69% | ||
| 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%
ROICexcg growth 3Y6.53%
ROICexcg 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-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.07 | ||
| Cap/Depr | 864.26% | ||
| Cap/Sales | 235.77% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 73.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 1.69 |
F-Score5
WACC7.35%
ROIC/WACC0.55
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)0.85%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%10.34%
EPS Next Y12.74%
EPS Next 2Y9.25%
EPS Next 3Y7.41%
EPS Next 5Y5.05%
Revenue 1Y (TTM)25.14%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%25.44%
Revenue Next Year22.55%
Revenue Next 2Y19.6%
Revenue Next 3Y18.27%
Revenue Next 5Y16.66%
EBIT growth 1Y26.55%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year81.7%
EBIT Next 3Y35.01%
EBIT Next 5Y29.16%
FCF growth 1Y-22.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.98%
OCF growth 3Y22.6%
OCF growth 5Y28.34%