EMPIRE STATE REALTY TRUST-A (ESRT) Stock Fundamental Analysis
NYSE:ESRT - New York Stock Exchange, Inc. - US2921041065 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to ESRT. ESRT was compared to 130 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
ESRT had positive earnings in the past year.
In the past year ESRT had a positive cash flow from operations.
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 has a Return On Assets of 1.05%. This is comparable to the rest of the industry: ESRT outperforms 59.23% of its industry peers.
With a decent Return On Equity value of 4.47%, ESRT is doing good in the industry, outperforming 68.46% of the companies in the same industry.
ESRT has a Return On Invested Capital of 2.90%. This is comparable to the rest of the industry: ESRT outperforms 58.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESRT is in line with the industry average of 3.19%.
The 3 year average ROIC (2.75%) for ESRT is below the current ROIC(2.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 4.47% | ||
| ROIC | 2.9% |
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
With a Profit Margin value of 6.18%, ESRT perfoms like the industry average, outperforming 54.62% of the companies in the same industry.
ESRT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 20.67%, ESRT perfoms like the industry average, outperforming 47.69% of the companies in the same industry.
ESRT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 55.10%, ESRT is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
ESRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.67% | ||
| PM (TTM) | 6.18% | ||
| GM | 55.1% |
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.
The number of shares outstanding for ESRT has been increased compared to 1 year ago.
The number of shares outstanding for ESRT has been reduced compared to 5 years ago.
The debt/assets ratio for ESRT is higher compared to a year ago.
2.2 Solvency
ESRT has an Altman-Z score of 0.60. This is a bad value and indicates that ESRT is not financially healthy and even has some risk of bankruptcy.
ESRT has a Altman-Z score of 0.60. This is comparable to the rest of the industry: ESRT outperforms 56.15% of its industry peers.
A Debt/Equity ratio of 2.32 is on the high side and indicates that ESRT has dependencies on debt financing.
The Debt to Equity ratio of ESRT (2.32) is worse than 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.6 |
ROIC/WACC0.46
WACC6.34%
2.3 Liquidity
ESRT has a Current Ratio of 3.49. This indicates that ESRT is financially healthy and has no problem in meeting its short term obligations.
ESRT's Current ratio of 3.49 is amongst the best of the industry. ESRT outperforms 91.54% of its industry peers.
A Quick Ratio of 3.49 indicates that ESRT has no problem at all paying its short term obligations.
ESRT's Quick ratio of 3.49 is amongst the best of the industry. ESRT outperforms 91.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.49 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
ESRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.52%.
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.
Looking at the last year, ESRT shows a small growth in Revenue. The Revenue has grown by 3.85% in the last 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)-31.52%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%-4%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%2.62%
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 Year2.94%
Revenue Next 2Y2.96%
Revenue Next 3Y-5.33%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ESRT is valuated reasonably with a Price/Earnings ratio of 11.16.
90.77% of the companies in the same industry are more expensive than ESRT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.63. ESRT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 76.58, ESRT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESRT is on the same level as its industry peers.
ESRT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 76.58 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than ESRT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
A cheap valuation may be justified as ESRT's earnings are expected to decrease with -51.61% in the coming years.
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 1.97%. Purely for dividend investing, there may be better candidates out there.
The stock price of ESRT dropped by -26.85% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 16.87, ESRT's dividend is way lower than its industry peers. On top of this 87.69% 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of ESRT decreases each year by -17.38%.
ESRT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ESRT decreased in the last 3 years.
Dividend Growth(5Y)-17.38%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ESRT pays out 57.80% 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.
DP57.8%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
7.03
-0.08 (-1.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.47%
Inst Owner Change0.02%
Ins Owners0.1%
Ins Owner Change0.15%
Market Cap1.18B
Analysts75
Price Target11.02 (56.76%)
Short Float %2.31%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.17
Dividend Growth(5Y)-17.38%
DP57.8%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)213.73%
Min EPS beat(2)56.86%
Max EPS beat(2)370.59%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)-10.22%
Min Revenue beat(2)-21.46%
Max Revenue beat(2)1.03%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-6.09%
PT rev (3m)-8.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)50%
EPS NY rev (3m)-21.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 76.58 | ||
| P/S | 1.53 | ||
| P/FCF | N/A | ||
| P/OCF | 4.51 | ||
| P/B | 1.11 | ||
| P/tB | 4.6 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)0.63
EY8.96%
EPS(NY)0.09
Fwd EY1.31%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)1.56
OCFY22.18%
SpS4.59
BVpS6.34
TBVpS1.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 4.47% | ||
| ROCE | 3.67% | ||
| ROIC | 2.9% | ||
| ROICexc | 3.19% | ||
| ROICexgc | 4.01% | ||
| OM | 20.67% | ||
| PM (TTM) | 6.18% | ||
| GM | 55.1% | ||
| 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-Score3
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.15 | ||
| Cap/Depr | 200.2% | ||
| Cap/Sales | 48.18% | ||
| Interest Coverage | 1.68 | ||
| Cash Conversion | 75.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.49 | ||
| Quick Ratio | 3.49 | ||
| Altman-Z | 0.6 |
F-Score3
WACC6.34%
ROIC/WACC0.46
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)-31.52%
EPS 3YN/A
EPS 5Y-8.83%
EPS Q2Q%-4%
EPS Next Y-85.43%
EPS Next 2Y-64.01%
EPS Next 3Y-51.61%
EPS Next 5Y-33.55%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y7.16%
Revenue growth 5Y0.98%
Sales Q2Q%2.62%
Revenue Next Year2.94%
Revenue Next 2Y2.96%
Revenue Next 3Y-5.33%
Revenue Next 5Y2.17%
EBIT growth 1Y8.13%
EBIT growth 3Y22.28%
EBIT growth 5Y0.51%
EBIT Next Year136.07%
EBIT Next 3Y34.88%
EBIT Next 5Y20.79%
FCF growth 1Y-264.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.22%
OCF growth 3Y7.08%
OCF growth 5Y2.32%