ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
251.02 USD
-5.93 (-2.31%)
251.02 USD
0 (0%)
Taking everything into account, ESS scores 5 out of 10 in our fundamental rating. ESS was compared to 20 industry peers in the Residential REITs industry. ESS has an excellent profitability rating, but there are concerns on its financial health. ESS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ESS had positive earnings in the past year.
ESS had a positive operating cash flow in the past year.
Each year in the past 5 years ESS has been profitable.
In the past 5 years ESS always reported a positive cash flow from operatings.
1.2 Ratios
ESS has a better Return On Assets (6.44%) than 85.00% of its industry peers.
ESS has a better Return On Equity (15.03%) than 90.00% of its industry peers.
ESS has a Return On Invested Capital of 3.60%. This is amongst the best in the industry. ESS outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ESS is in line with the industry average of 2.59%.
The 3 year average ROIC (3.38%) for ESS is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 15.03% | ||
| ROIC | 3.6% |
ROA(3y)4.11%
ROA(5y)4.1%
ROE(3y)9.34%
ROE(5y)9.13%
ROIC(3y)3.38%
ROIC(5y)3.06%
1.3 Margins
Looking at the Profit Margin, with a value of 45.46%, ESS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESS has grown nicely.
Looking at the Operating Margin, with a value of 30.96%, ESS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ESS has declined.
The Gross Margin of ESS (70.42%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of ESS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.96% | ||
| PM (TTM) | 45.46% | ||
| GM | 70.42% |
OM growth 3Y3.42%
OM growth 5Y-2.45%
PM growth 3Y7.21%
PM growth 5Y6.79%
GM growth 3Y0.78%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESS is destroying value.
ESS has about the same amout of shares outstanding than it did 1 year ago.
ESS has less shares outstanding than it did 5 years ago.
ESS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that ESS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.44, ESS is doing good in the industry, outperforming 70.00% of the companies in the same industry.
ESS has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.18, ESS is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.51
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.59 indicates that ESS may have some problems paying its short term obligations.
With a Current ratio value of 0.59, ESS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that ESS may have some problems paying its short term obligations.
ESS has a Quick ratio of 0.32. This is comparable to the rest of the industry: ESS outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
ESS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.85%, which is quite impressive.
ESS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.66% yearly.
ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.92%.
ESS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.98% yearly.
EPS 1Y (TTM)21.85%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%39.13%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
3.2 Future
The Earnings Per Share is expected to decrease by -3.11% on average over the next years.
ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y21.52%
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
EPS Next 5Y-3.11%
Revenue Next Year6.52%
Revenue Next 2Y5.04%
Revenue Next 3Y4.6%
Revenue Next 5Y4.42%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ESS is valuated rather expensively with a Price/Earnings ratio of 24.07.
ESS's Price/Earnings ratio is a bit cheaper when compared to the industry. ESS is cheaper than 80.00% of the companies in the same industry.
ESS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 41.40, which means the current valuation is very expensive for ESS.
75.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.92. ESS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 41.4 |
4.2 Price Multiples
ESS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ESS is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ESS may justify a higher PE ratio.
ESS's earnings are expected to decrease with -9.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.12
PEG (5Y)4.25
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, ESS is a good candidate for dividend investing.
ESS's Dividend Yield is slightly below the industry average, which is at 32.52.
Compared to an average S&P500 Dividend Yield of 1.92, ESS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
The dividend of ESS has a limited annual growth rate of 4.65%.
ESS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ESS decreased recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
76.31% of the earnings are spent on dividend by ESS. This is not a sustainable payout ratio.
The Dividend Rate of ESS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP76.31%
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
251.02
-5.93 (-2.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.27%
Inst Owner Change0.03%
Ins Owners1.16%
Ins Owner Change3.82%
Market Cap16.17B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts65.16
Price Target288.22 (14.82%)
Short Float %3.27%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP76.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.54%
Min EPS beat(2)73.1%
Max EPS beat(2)129.99%
EPS beat(4)3
Avg EPS beat(4)79.27%
Min EPS beat(4)-9.12%
Max EPS beat(4)129.99%
EPS beat(8)6
Avg EPS beat(8)68.85%
EPS beat(12)9
Avg EPS beat(12)61.22%
EPS beat(16)11
Avg EPS beat(16)49.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.4%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.27%
PT rev (1m)-0.73%
PT rev (3m)-3.92%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)10.97%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 41.4 | ||
| P/S | 8.68 | ||
| P/FCF | N/A | ||
| P/OCF | 15.27 | ||
| P/B | 2.87 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 19.3 |
EPS(TTM)10.43
EY4.16%
EPS(NY)6.06
Fwd EY2.42%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.55%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)1.12
PEG (5Y)4.25
Graham Number143.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 15.03% | ||
| ROCE | 4.56% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 3.62% | ||
| OM | 30.96% | ||
| PM (TTM) | 45.46% | ||
| GM | 70.42% | ||
| FCFM | N/A |
ROA(3y)4.11%
ROA(5y)4.1%
ROE(3y)9.34%
ROE(5y)9.13%
ROIC(3y)3.38%
ROIC(5y)3.06%
ROICexc(3y)3.43%
ROICexc(5y)3.09%
ROICexgc(3y)3.43%
ROICexgc(5y)3.09%
ROCE(3y)4.28%
ROCE(5y)3.87%
ROICexgc growth 3Y11.24%
ROICexgc growth 5Y1.13%
ROICexc growth 3Y11.22%
ROICexc growth 5Y1.11%
OM growth 3Y3.42%
OM growth 5Y-2.45%
PM growth 3Y7.21%
PM growth 5Y6.79%
GM growth 3Y0.78%
GM growth 5Y-0.57%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.65 | ||
| Cap/Depr | 199.48% | ||
| Cap/Sales | 64.56% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 89.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.44 |
F-Score6
WACC7.1%
ROIC/WACC0.51
Cap/Depr(3y)100.16%
Cap/Depr(5y)101.9%
Cap/Sales(3y)32.94%
Cap/Sales(5y)34.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.85%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%39.13%
EPS Next Y21.52%
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
EPS Next 5Y-3.11%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
Revenue Next Year6.52%
Revenue Next 2Y5.04%
Revenue Next 3Y4.6%
Revenue Next 5Y4.42%
EBIT growth 1Y8.93%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year136.36%
EBIT Next 3Y35.47%
EBIT Next 5Y26.96%
FCF growth 1Y-121.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.22%
OCF growth 3Y5.68%
OCF growth 5Y3.05%
ESSEX PROPERTY TRUST INC / ESS FAQ
What is the fundamental rating for ESS stock?
ChartMill assigns a fundamental rating of 4 / 10 to ESS.
What is the valuation status for ESS stock?
ChartMill assigns a valuation rating of 3 / 10 to ESSEX PROPERTY TRUST INC (ESS). This can be considered as Overvalued.
How profitable is ESSEX PROPERTY TRUST INC (ESS) stock?
ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for ESS stock?
The Earnings per Share (EPS) of ESSEX PROPERTY TRUST INC (ESS) is expected to grow by 21.52% in the next year.
Is the dividend of ESSEX PROPERTY TRUST INC sustainable?
The dividend rating of ESSEX PROPERTY TRUST INC (ESS) is 4 / 10 and the dividend payout ratio is 76.31%.