ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPRT - US29670E1073 - REIT
31.01 USD
+0.36 (+1.17%)
31.3 USD
+0.29 (+0.94%)
Overall EPRT gets a fundamental rating of 6 out of 10. We evaluated EPRT against 128 industry peers in the Diversified REITs industry. EPRT has an excellent profitability rating, but 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
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.
EPRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.62%, EPRT is doing good in the industry, outperforming 79.69% of the companies in the same industry.
EPRT has a better Return On Equity (6.24%) than 72.66% of its industry peers.
EPRT has a better Return On Invested Capital (4.10%) than 79.69% 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 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
Looking at the Profit Margin, with a value of 45.10%, EPRT belongs to the top of the industry, outperforming 94.53% of the companies in the same industry.
In the last couple of years the Profit Margin of EPRT has grown nicely.
Looking at the Operating Margin, with a value of 63.61%, EPRT belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
In the last couple of years the Operating Margin of EPRT has grown nicely.
Looking at the Gross Margin, with a value of 98.70%, EPRT belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
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.
Compared to 1 year ago, EPRT has more shares outstanding
The number of shares outstanding for EPRT has been increased compared to 5 years ago.
EPRT has a worse debt/assets ratio than last year.
2.2 Solvency
EPRT has an Altman-Z score of 1.56. 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 1.56, EPRT belongs to the top of the industry, outperforming 91.41% 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.
Looking at the Debt to Equity ratio, with a value of 0.69, EPRT belongs to the top of the industry, outperforming 83.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.55
WACC7.44%
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.
The Current ratio of EPRT (2.12) is better than 83.59% 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.
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
EPRT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.83%.
The Earnings Per Share has been growing by 10.89% on average over the past years. This is quite good.
The Revenue has grown by 24.19% in the past year. This is a very strong growth!
EPRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.39% yearly.
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 Y11.84%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
EPS Next 5Y6.48%
Revenue Next Year23.38%
Revenue Next 2Y20.37%
Revenue Next 3Y18.52%
Revenue Next 5Y14.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 25.01, 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 71.09% 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 26.34.
With a Price/Forward Earnings ratio of 23.00, EPRT is valued on the expensive side.
89.06% 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 23.56. EPRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 23 |
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 78.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of EPRT may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)2.3
EPS Next 2Y8.76%
EPS Next 3Y7.02%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 6.59, EPRT is paying slightly less dividend.
EPRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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.
As EPRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
94.03% 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.
DP94.03%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
31.01
+0.36 (+1.17%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners113.22%
Inst Owner Change0.03%
Ins Owners0.61%
Ins Owner Change-0.22%
Market Cap6.14B
Revenue(TTM)531.06M
Net Income(TTM)239.51M
Analysts82.31
Price Target36.72 (18.41%)
Short Float %7.4%
Short Ratio7.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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%
PT rev (3m)0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 23 | ||
| P/S | 11.57 | ||
| P/FCF | N/A | ||
| P/OCF | 16.93 | ||
| P/B | 1.6 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 17.96 |
EPS(TTM)1.24
EY4%
EPS(NY)1.35
Fwd EY4.35%
FCF(TTM)-4.41
FCFYN/A
OCF(TTM)1.83
OCFY5.91%
SpS2.68
BVpS19.36
TBVpS19.36
PEG (NY)2.11
PEG (5Y)2.3
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 | 1.56 |
F-Score6
WACC7.44%
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)7.83%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%22.22%
EPS Next Y11.84%
EPS Next 2Y8.76%
EPS Next 3Y7.02%
EPS Next 5Y6.48%
Revenue 1Y (TTM)24.19%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%23.74%
Revenue Next Year23.38%
Revenue Next 2Y20.37%
Revenue Next 3Y18.52%
Revenue Next 5Y14.9%
EBIT growth 1Y24.37%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year83.45%
EBIT Next 3Y35.44%
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 11.84% in the next year.