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 129 industry peers in the Diversified REITs industry. EPRT has an excellent profitability rating, but 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.
Each year in the past 5 years EPRT has been profitable.
Each year in the past 5 years EPRT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EPRT (3.55%) is better than 84.92% of its industry peers.
Looking at the Return On Equity, with a value of 6.15%, EPRT is in the better half of the industry, outperforming 76.98% of the companies in the same industry.
EPRT has a Return On Invested Capital of 3.94%. This is in the better half of the industry: EPRT outperforms 77.78% 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 3.11%.
The 3 year average ROIC (3.42%) for EPRT is below the current ROIC(3.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.15% | ||
| ROIC | 3.94% |
ROA(3y)3.41%
ROA(5y)2.8%
ROE(3y)5.48%
ROE(5y)4.52%
ROIC(3y)3.42%
ROIC(5y)3.12%
1.3 Margins
The Profit Margin of EPRT (45.90%) is better than 94.44% of its industry peers.
In the last couple of years the Profit Margin of EPRT has grown nicely.
Looking at the Operating Margin, with a value of 63.51%, EPRT belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
EPRT's Operating Margin has improved in the last couple of years.
EPRT's Gross Margin of 98.83% is amongst the best of the industry. EPRT outperforms 100.00% of its industry peers.
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 | 63.51% | ||
| PM (TTM) | 45.9% | ||
| GM | 98.83% |
OM growth 3Y10.35%
OM growth 5Y3.85%
PM growth 3Y27.47%
PM growth 5Y27.18%
GM growth 3Y0.37%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EPRT is destroying value.
EPRT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EPRT has been increased compared to 5 years ago.
EPRT has a better debt/assets ratio than last year.
2.2 Solvency
EPRT has an Altman-Z score of 1.64. This is a bad value and indicates that EPRT is not financially healthy and even has some risk of bankruptcy.
EPRT has a better Altman-Z score (1.64) than 91.27% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that EPRT is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.69, EPRT is doing good in the industry, outperforming 76.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.64 |
ROIC/WACC0.5
WACC7.81%
2.3 Liquidity
A Current Ratio of 2.06 indicates that EPRT has no problem at all paying its short term obligations.
EPRT's Current ratio of 2.06 is fine compared to the rest of the industry. EPRT outperforms 76.98% of its industry peers.
A Quick Ratio of 2.06 indicates that EPRT has no problem at all paying its short term obligations.
EPRT's Quick ratio of 2.06 is fine compared to the rest of the industry. EPRT outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
EPRT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.54%.
EPRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.84% yearly.
The Revenue has grown by 27.22% 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 30.18% on average per year.
EPS 1Y (TTM)-2.54%
EPS 3Y41.25%
EPS 5Y37.84%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)27.22%
Revenue growth 3Y29.91%
Revenue growth 5Y30.18%
Sales Q2Q%27.79%
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 3.30% on average per year.
EPRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.24% yearly.
EPS Next Y-4.99%
EPS Next 2Y2.21%
EPS Next 3Y2.26%
EPS Next 5Y3.3%
Revenue Next Year26.32%
Revenue Next 2Y22.82%
Revenue Next 3Y20.3%
Revenue Next 5Y18.24%
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
With a Price/Earnings ratio of 27.31, EPRT can be considered very expensive at the moment.
73.02% of the companies in the same industry are more expensive than EPRT, based on the Price/Earnings ratio.
EPRT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.25, the valuation of EPRT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPRT indicates a rather cheap valuation: EPRT is cheaper than 84.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.51. EPRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.31 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
EPRT's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. EPRT is more expensive than 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.69 |
4.3 Compensation for Growth
EPRT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y2.21%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
EPRT has a Yearly Dividend Yield of 3.71%.
Compared to an average industry Dividend Yield of 18.51, EPRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, EPRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
On average, the dividend of EPRT grows each year by 6.90%, which is quite nice.
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)6.9%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
EPRT pays out 98.06% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EPRT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP98.06%
EPS Next 2Y2.21%
EPS Next 3Y2.26%
ESSENTIAL PROPERTIES REALTY
NYSE:EPRT (1/24/2025, 5:05:00 PM)
After market: 31.41 0 (0%)31.41
+0.14 (+0.45%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners112.15%
Inst Owner Change-0.04%
Ins Owners0.66%
Ins Owner Change-6.47%
Market Cap5.51B
Analysts83.48
Price Target36.63 (16.62%)
Short Float %7.03%
Short Ratio9.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.1
Dividend Growth(5Y)6.9%
DP98.06%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8%
Min EPS beat(2)-13.21%
Max EPS beat(2)-2.8%
EPS beat(4)1
Avg EPS beat(4)-0.25%
Min EPS beat(4)-13.21%
Max EPS beat(4)15.78%
EPS beat(8)5
Avg EPS beat(8)10.16%
EPS beat(12)8
Avg EPS beat(12)8.2%
EPS beat(16)11
Avg EPS beat(16)6.4%
Revenue beat(2)2
Avg Revenue beat(2)0.91%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.53%
Revenue beat(4)4
Avg Revenue beat(4)1.15%
Min Revenue beat(4)0.3%
Max Revenue beat(4)2.35%
Revenue beat(8)6
Avg Revenue beat(8)0.84%
Revenue beat(12)8
Avg Revenue beat(12)0.46%
Revenue beat(16)11
Avg Revenue beat(16)0.96%
PT rev (1m)0.89%
PT rev (3m)7.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.31 | ||
| Fwd PE | 24.25 | ||
| P/S | 12.88 | ||
| P/FCF | N/A | ||
| P/OCF | 18.73 | ||
| P/B | 1.72 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 19.69 |
EPS(TTM)1.15
EY3.66%
EPS(NY)1.3
Fwd EY4.12%
FCF(TTM)-4.48
FCFYN/A
OCF(TTM)1.68
OCFY5.34%
SpS2.44
BVpS18.21
TBVpS18.21
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.15% | ||
| ROCE | 4.98% | ||
| ROIC | 3.94% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 3.97% | ||
| OM | 63.51% | ||
| PM (TTM) | 45.9% | ||
| GM | 98.83% | ||
| FCFM | N/A |
ROA(3y)3.41%
ROA(5y)2.8%
ROE(3y)5.48%
ROE(5y)4.52%
ROIC(3y)3.42%
ROIC(5y)3.12%
ROICexc(3y)3.47%
ROICexc(5y)3.16%
ROICexgc(3y)3.51%
ROICexgc(5y)3.22%
ROCE(3y)4.33%
ROCE(5y)3.96%
ROICexcg growth 3Y14.66%
ROICexcg growth 5Y5.03%
ROICexc growth 3Y15.31%
ROICexc growth 5Y5.7%
OM growth 3Y10.35%
OM growth 5Y3.85%
PM growth 3Y27.47%
PM growth 5Y27.18%
GM growth 3Y0.37%
GM growth 5Y0.16%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.66 | ||
| Cap/Depr | 925.16% | ||
| Cap/Sales | 252.58% | ||
| Interest Coverage | 4.13 | ||
| Cash Conversion | 75.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 1.64 |
F-Score6
WACC7.81%
ROIC/WACC0.5
Cap/Depr(3y)1029.4%
Cap/Depr(5y)1080.11%
Cap/Sales(3y)306.48%
Cap/Sales(5y)336%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.54%
EPS 3Y41.25%
EPS 5Y37.84%
EPS Q2Q%-6.9%
EPS Next Y-4.99%
EPS Next 2Y2.21%
EPS Next 3Y2.26%
EPS Next 5Y3.3%
Revenue 1Y (TTM)27.22%
Revenue growth 3Y29.91%
Revenue growth 5Y30.18%
Sales Q2Q%27.79%
Revenue Next Year26.32%
Revenue Next 2Y22.82%
Revenue Next 3Y20.3%
Revenue Next 5Y18.24%
EBIT growth 1Y33.55%
EBIT growth 3Y43.36%
EBIT growth 5Y35.19%
EBIT Next Year83.66%
EBIT Next 3Y37.32%
EBIT Next 5Y30.47%
FCF growth 1Y-36.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.37%
OCF growth 3Y36.82%
OCF growth 5Y40.86%