ESSENTIAL PROPERTIES REALTY (EPRT) Stock Fundamental Analysis
NYSE:EPRT - New York Stock Exchange, Inc. - US29670E1073 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to EPRT. EPRT was compared to 128 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. 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.
In the past year EPRT had a positive cash flow from operations.
Each year in the past 5 years EPRT has been profitable.
In the past 5 years EPRT always reported a positive cash flow from operatings.
1.2 Ratios
EPRT has a Return On Assets of 3.49%. This is amongst the best in the industry. EPRT outperforms 84.80% of its industry peers.
With a decent Return On Equity value of 5.68%, EPRT is doing good in the industry, outperforming 75.20% of the companies in the same industry.
EPRT's Return On Invested Capital of 3.97% is fine compared to the rest of the industry. EPRT outperforms 78.40% 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 3.13%.
The last Return On Invested Capital (3.97%) for EPRT is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 5.68% | ||
| ROIC | 3.97% |
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 45.05%, EPRT belongs to the top of the industry, outperforming 94.40% of the companies in the same industry.
In the last couple of years the Profit Margin of EPRT has grown nicely.
With an excellent Operating Margin value of 63.85%, EPRT belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
EPRT's Operating Margin has improved in the last couple of years.
EPRT has a better Gross Margin (98.89%) 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 | 63.85% | ||
| PM (TTM) | 45.05% | ||
| GM | 98.89% |
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 1.73, we must say that EPRT is in the distress zone and has some risk of bankruptcy.
EPRT has a better Altman-Z score (1.73) than 94.40% of its industry peers.
EPRT has a Debt/Equity ratio of 0.59. This is a neutral value indicating EPRT is somewhat dependend on debt financing.
EPRT has a better Debt to Equity ratio (0.59) than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC0.53
WACC7.55%
2.3 Liquidity
EPRT has a Current Ratio of 2.03. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.03, EPRT is doing good in the industry, outperforming 76.80% of the companies in the same industry.
EPRT has a Quick Ratio of 2.03. This indicates that EPRT is financially healthy and has no problem in meeting its short term obligations.
EPRT has a Quick ratio of 2.03. This is in the better half of the industry: EPRT outperforms 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
EPRT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.06%.
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 25.03% in the past year. This is a very strong growth!
The Revenue has been growing by 26.39% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-8.06%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%-3.23%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%22.48%
3.2 Future
EPRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.20% yearly.
EPRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.16% yearly.
EPS Next Y14.71%
EPS Next 2Y9.19%
EPS Next 3Y7.28%
EPS Next 5Y6.2%
Revenue Next Year19.73%
Revenue Next 2Y17.79%
Revenue Next 3Y18.05%
Revenue Next 5Y16.16%
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
A Price/Earnings ratio of 27.96 indicates a quite expensive valuation of EPRT.
66.40% of the companies in the same industry are more expensive than EPRT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EPRT to the average of the S&P500 Index (29.62), we can say EPRT is valued inline with the index average.
A Price/Forward Earnings ratio of 24.38 indicates a rather expensive valuation of EPRT.
Based on the Price/Forward Earnings ratio, EPRT is valued cheaper than 83.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EPRT to the average of the S&P500 Index (22.70), we can say EPRT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 24.38 |
4.2 Price Multiples
EPRT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EPRT is more expensive than 78.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.73 |
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)1.9
PEG (5Y)2.57
EPS Next 2Y9.19%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 18.31, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.27, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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 98.58% 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.
DP98.58%
EPS Next 2Y9.19%
EPS Next 3Y7.28%
31.88
+0.07 (+0.22%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners111.39%
Inst Owner Change-91.07%
Ins Owners0.7%
Ins Owner Change4.95%
Market Cap5.59B
Analysts83.33
Price Target36.22 (13.61%)
Short Float %6.2%
Short Ratio10.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.13
Dividend Growth(5Y)2.5%
DP98.58%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.86%
Min EPS beat(2)-13.21%
Max EPS beat(2)-4.51%
EPS beat(4)0
Avg EPS beat(4)-5.32%
Min EPS beat(4)-13.21%
Max EPS beat(4)-0.78%
EPS beat(8)4
Avg EPS beat(8)8.17%
EPS beat(12)7
Avg EPS beat(12)7.24%
EPS beat(16)11
Avg EPS beat(16)10.33%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)1.53%
Revenue beat(4)3
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)1.53%
Revenue beat(8)6
Avg Revenue beat(8)0.88%
Revenue beat(12)7
Avg Revenue beat(12)-0.01%
Revenue beat(16)11
Avg Revenue beat(16)1.37%
PT rev (1m)-1.11%
PT rev (3m)0.17%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0.94%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 24.38 | ||
| P/S | 12.43 | ||
| P/FCF | N/A | ||
| P/OCF | 18.12 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 18.73 |
EPS(TTM)1.14
EY3.58%
EPS(NY)1.31
Fwd EY4.1%
FCF(TTM)-4.45
FCFYN/A
OCF(TTM)1.76
OCFY5.52%
SpS2.56
BVpS20.33
TBVpS20.33
PEG (NY)1.9
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 5.68% | ||
| ROCE | 5.03% | ||
| ROIC | 3.97% | ||
| ROICexc | 4% | ||
| ROICexgc | 4.02% | ||
| OM | 63.85% | ||
| PM (TTM) | 45.05% | ||
| GM | 98.89% | ||
| 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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 891.43% | ||
| Cap/Sales | 242.21% | ||
| Interest Coverage | 3.89 | ||
| Cash Conversion | 75.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 1.73 |
F-Score6
WACC7.55%
ROIC/WACC0.53
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)-8.06%
EPS 3Y12.07%
EPS 5Y10.89%
EPS Q2Q%-3.23%
EPS Next Y14.71%
EPS Next 2Y9.19%
EPS Next 3Y7.28%
EPS Next 5Y6.2%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y25%
Revenue growth 5Y26.39%
Sales Q2Q%22.48%
Revenue Next Year19.73%
Revenue Next 2Y17.79%
Revenue Next 3Y18.05%
Revenue Next 5Y16.16%
EBIT growth 1Y29.24%
EBIT growth 3Y29.82%
EBIT growth 5Y31.94%
EBIT Next Year81.77%
EBIT Next 3Y33.12%
EBIT Next 5YN/A
FCF growth 1Y-4.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.18%
OCF growth 3Y22.6%
OCF growth 5Y28.34%