EMPIRE STATE REALTY TRUST-A (ESRT) Stock Fundamental Analysis
NYSE:ESRT - New York Stock Exchange, Inc. - US2921041065 - REIT - Currency: USD
Overall ESRT gets a fundamental rating of 4 out of 10. We evaluated ESRT against 129 industry peers in the Diversified REITs industry. Both the profitability and the financial health of ESRT get a neutral evaluation. Nothing too spectacular is happening here. ESRT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ESRT was profitable.
ESRT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ESRT reported negative net income in multiple years.
Each year in the past 5 years ESRT had a positive operating cash flow.
1.2 Ratios
ESRT's Return On Assets of 1.24% is in line compared to the rest of the industry. ESRT outperforms 58.91% of its industry peers.
ESRT has a better Return On Equity (4.80%) than 67.44% of its industry peers.
ESRT has a Return On Invested Capital of 3.09%. This is comparable to the rest of the industry: ESRT outperforms 59.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESRT is in line with the industry average of 3.15%.
The 3 year average ROIC (2.75%) for ESRT is below the current ROIC(3.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 4.8% | ||
| ROIC | 3.09% |
ROA(3y)1.03%
ROA(5y)0.49%
ROE(3y)4.33%
ROE(5y)2.08%
ROIC(3y)2.75%
ROIC(5y)2.24%
1.3 Margins
ESRT has a Profit Margin (6.65%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ESRT has declined.
Looking at the Operating Margin, with a value of 20.01%, ESRT is in line with its industry, outperforming 45.74% of the companies in the same industry.
In the last couple of years the Operating Margin of ESRT has remained more or less at the same level.
ESRT's Gross Margin of 54.97% is on the low side compared to the rest of the industry. ESRT is outperformed by 73.64% of its industry peers.
In the last couple of years the Gross Margin of ESRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.01% | ||
| PM (TTM) | 6.65% | ||
| GM | 54.97% |
OM growth 3Y14.11%
OM growth 5Y-0.46%
PM growth 3YN/A
PM growth 5Y-1.77%
GM growth 3Y-0.96%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESRT is destroying value.
ESRT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ESRT has been reduced compared to 5 years ago.
ESRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that ESRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ESRT (0.64) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.94 is on the high side and indicates that ESRT has dependencies on debt financing.
The Debt to Equity ratio of ESRT (1.94) is worse than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.48
WACC6.39%
2.3 Liquidity
A Current Ratio of 2.46 indicates that ESRT has no problem at all paying its short term obligations.
The Current ratio of ESRT (2.46) is better than 86.05% of its industry peers.
ESRT has a Quick Ratio of 2.46. This indicates that ESRT is financially healthy and has no problem in meeting its short term obligations.
ESRT has a Quick ratio of 2.46. This is amongst the best in the industry. ESRT outperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
The earnings per share for ESRT have decreased strongly by -37.11% in the last year.
Measured over the past years, ESRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.83% on average per year.
The Revenue has been growing slightly by 1.42% in the past year.
ESRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)-37.11%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%0.43%
3.2 Future
The Earnings Per Share is expected to decrease by -33.55% on average over the next years. This is quite bad
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue Next Year2.48%
Revenue Next 2Y2.52%
Revenue Next 3Y2.12%
Revenue Next 5Y2.17%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.44, the valuation of ESRT can be described as correct.
Based on the Price/Earnings ratio, ESRT is valued cheaper than 90.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESRT to the average of the S&P500 Index (27.30), we can say ESRT is valued rather cheaply.
ESRT is valuated quite expensively with a Price/Forward Earnings ratio of 100.49.
ESRT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ESRT to the average of the S&P500 Index (21.76), we can say ESRT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 100.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESRT is valued cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
ESRT's earnings are expected to decrease with -51.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
5. Dividend
5.1 Amount
ESRT has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.68, ESRT pays less dividend than the industry average, which is at 6.43. 86.82% of the companies listed in the same industry pay a better dividend than ESRT!
ESRT's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of ESRT decreases each year by -17.38%.
ESRT has paid a dividend for at least 10 years, which is a reliable track record.
ESRT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.38%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
ESRT pays out 53.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ESRT has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP53.99%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
8.2
-0.04 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.55%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner Change-0.14%
Market Cap1.38B
Analysts75
Price Target9.65 (17.68%)
Short Float %2.78%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.17
Dividend Growth(5Y)-17.38%
DP53.99%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1066.67%
Min EPS beat(2)370.59%
Max EPS beat(2)1762.75%
EPS beat(4)4
Avg EPS beat(4)583.82%
Min EPS beat(4)56.86%
Max EPS beat(4)1762.75%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-19.08%
Min Revenue beat(2)-21.46%
Max Revenue beat(2)-16.69%
Revenue beat(4)1
Avg Revenue beat(4)-9.75%
Min Revenue beat(4)-21.46%
Max Revenue beat(4)1.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.47%
PT rev (3m)-12.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 100.49 | ||
| P/S | 1.8 | ||
| P/FCF | N/A | ||
| P/OCF | 5.06 | ||
| P/B | 1.3 | ||
| P/tB | 5.33 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)0.61
EY7.44%
EPS(NY)0.08
Fwd EY1%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)1.62
OCFY19.77%
SpS4.55
BVpS6.3
TBVpS1.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 4.8% | ||
| ROCE | 3.91% | ||
| ROIC | 3.09% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 4.13% | ||
| OM | 20.01% | ||
| PM (TTM) | 6.65% | ||
| GM | 54.97% | ||
| FCFM | N/A |
ROA(3y)1.03%
ROA(5y)0.49%
ROE(3y)4.33%
ROE(5y)2.08%
ROIC(3y)2.75%
ROIC(5y)2.24%
ROICexc(3y)2.99%
ROICexc(5y)2.46%
ROICexgc(3y)3.81%
ROICexgc(5y)3.15%
ROCE(3y)3.48%
ROCE(5y)2.83%
ROICexcg growth 3Y18.9%
ROICexcg growth 5Y-2.68%
ROICexc growth 3Y19.87%
ROICexc growth 5Y-1.77%
OM growth 3Y14.11%
OM growth 5Y-0.46%
PM growth 3YN/A
PM growth 5Y-1.77%
GM growth 3Y-0.96%
GM growth 5Y-0.19%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.04 | ||
| Cap/Depr | 181.75% | ||
| Cap/Sales | 44.45% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 0.64 |
F-Score6
WACC6.39%
ROIC/WACC0.48
Cap/Depr(3y)133.09%
Cap/Depr(5y)115.91%
Cap/Sales(3y)34.64%
Cap/Sales(5y)32.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.11%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%-9.52%
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%0.43%
Revenue Next Year2.48%
Revenue Next 2Y2.52%
Revenue Next 3Y2.12%
Revenue Next 5Y2.17%
EBIT growth 1Y-4.3%
EBIT growth 3Y22.28%
EBIT growth 5Y0.51%
EBIT Next Year130.9%
EBIT Next 3Y34.88%
EBIT Next 5Y20.79%
FCF growth 1Y-258.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.8%
OCF growth 3Y7.08%
OCF growth 5Y2.32%