ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
NYSE:EPRT - New York Stock Exchange, Inc. - US29670E1073 - REIT - Currency: USD
Overall EPRT gets a fundamental rating of 6 out of 10. We evaluated EPRT against 130 industry peers in the Diversified REITs industry. While EPRT has a great profitability rating, 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
EPRT had positive earnings in the past year.
EPRT had a positive operating cash flow in the past year.
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
EPRT has a Return On Assets of 3.49%. This is amongst the best in the industry. EPRT outperforms 84.62% of its industry peers.
The Return On Equity of EPRT (5.55%) is better than 72.31% of its industry peers.
EPRT has a better Return On Invested Capital (4.01%) than 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 3.16%.
The 3 year average ROIC (3.68%) for EPRT is below the current ROIC(4.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 5.55% | ||
| ROIC | 4.01% |
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 44.50%, EPRT belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
EPRT's Profit Margin has improved in the last couple of years.
EPRT's Operating Margin of 63.72% is amongst the best of 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 98.68%, EPRT belongs to the top of the industry, outperforming 99.23% 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 | 63.72% | ||
| PM (TTM) | 44.5% | ||
| GM | 98.68% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
EPRT has a worse debt/assets ratio than last year.
2.2 Solvency
EPRT has an Altman-Z score of 1.93. This is not the best score and indicates that EPRT is in the grey zone with still only limited risk for bankruptcy at the moment.
EPRT has a better Altman-Z score (1.93) than 95.38% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that EPRT is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.56, EPRT belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.48
WACC8.41%
2.3 Liquidity
EPRT has a Current Ratio of 2.38. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.38, EPRT belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
EPRT has a Quick Ratio of 2.38. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT's Quick ratio of 2.38 is amongst the best of the industry. EPRT outperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The earnings per share for EPRT have decreased by -6.50% in the last 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.
Looking at the last year, EPRT shows a very strong growth in Revenue. The Revenue has grown by 25.31%.
EPRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.39% yearly.
EPS 1Y (TTM)-6.5%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%3.57%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.98%
3.2 Future
The Earnings Per Share is expected to grow by 5.63% on average over the next years.
Based on estimates for the next years, EPRT will show a quite strong growth in Revenue. The Revenue will grow by 16.62% on average per year.
EPS Next Y12.14%
EPS Next 2Y9.56%
EPS Next 3Y7.54%
EPS Next 5Y5.63%
Revenue Next Year21.73%
Revenue Next 2Y19.35%
Revenue Next 3Y16.55%
Revenue Next 5Y16.62%
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 27.75, EPRT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EPRT is valued a bit cheaper than 68.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. EPRT is around the same levels.
A Price/Forward Earnings ratio of 23.32 indicates a rather expensive valuation of EPRT.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaper than 83.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, EPRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 23.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPRT is valued expensively inside the industry as 83.08% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.41 |
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)2.29
PEG (5Y)2.55
EPS Next 2Y9.56%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.73%, EPRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.64, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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
98.36% of the earnings are spent on dividend by EPRT. This is not a sustainable payout ratio.
The dividend of EPRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.36%
EPS Next 2Y9.56%
EPS Next 3Y7.54%
31.91
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.68%
Inst Owner Change7.72%
Ins Owners0.62%
Ins Owner Change1.33%
Market Cap6.30B
Analysts82.4
Price Target36.73 (15.1%)
Short Float %7.19%
Short Ratio8.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP98.36%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.9%
Min EPS beat(2)-4.51%
Max EPS beat(2)-3.29%
EPS beat(4)0
Avg EPS beat(4)-5.95%
Min EPS beat(4)-13.21%
Max EPS beat(4)-2.8%
EPS beat(8)3
Avg EPS beat(8)4.47%
EPS beat(12)7
Avg EPS beat(12)7.13%
EPS beat(16)10
Avg EPS beat(16)8.2%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)2.55%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)2.55%
Revenue beat(8)6
Avg Revenue beat(8)0.64%
Revenue beat(12)7
Avg Revenue beat(12)-0.12%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)0.59%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)1.21%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 23.32 | ||
| P/S | 13.26 | ||
| P/FCF | N/A | ||
| P/OCF | 19.76 | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 19.41 |
EPS(TTM)1.15
EY3.6%
EPS(NY)1.37
Fwd EY4.29%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)1.61
OCFY5.06%
SpS2.41
BVpS19.32
TBVpS19.32
PEG (NY)2.29
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 5.55% | ||
| ROCE | 5.07% | ||
| ROIC | 4.01% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.05% | ||
| OM | 63.72% | ||
| PM (TTM) | 44.5% | ||
| GM | 98.68% | ||
| 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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 899.47% | ||
| Cap/Sales | 243.34% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 73.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 1.93 |
F-Score4
WACC8.41%
ROIC/WACC0.48
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)-6.5%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%3.57%
EPS Next Y12.14%
EPS Next 2Y9.56%
EPS Next 3Y7.54%
EPS Next 5Y5.63%
Revenue 1Y (TTM)25.31%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%24.98%
Revenue Next Year21.73%
Revenue Next 2Y19.35%
Revenue Next 3Y16.55%
Revenue Next 5Y16.62%
EBIT growth 1Y28.22%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year80.1%
EBIT Next 3Y34.46%
EBIT Next 5Y27.79%
FCF growth 1Y-45.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.56%
OCF growth 3Y22.6%
OCF growth 5Y28.34%