ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
257.62 USD
-0.51 (-0.2%)
257.62 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ESS. ESS was compared to 20 industry peers in the Residential REITs industry. ESS scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, ESS is valued expensive at the moment.
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.
ESS had positive earnings in each of the past 5 years.
In the past 5 years ESS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.44%, ESS belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Return On Equity of ESS (15.03%) is better than 90.00% of its industry peers.
ESS has a better Return On Invested Capital (3.60%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESS is in line with the industry average of 2.59%.
The last Return On Invested Capital (3.60%) for ESS is above the 3 year average (3.38%), which is a sign of increasing profitability.
| 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
ESS has a Profit Margin of 45.46%. This is amongst the best in the industry. ESS outperforms 95.00% of its industry peers.
In the last couple of years the Profit Margin of ESS has grown nicely.
ESS has a Operating Margin of 30.96%. This is amongst the best in the industry. ESS outperforms 95.00% of its industry peers.
ESS's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 70.42%, ESS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ESS's Gross Margin has been stable in the last couple of years.
| 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
ESS 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 ESS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ESS has less shares outstanding
ESS has a worse debt/assets ratio than last year.
2.2 Solvency
ESS has an Altman-Z score of 1.48. This is a bad value and indicates that ESS is not financially healthy and even has some risk of bankruptcy.
ESS has a Altman-Z score of 1.48. This is in the better half of the industry: ESS outperforms 70.00% of its industry peers.
ESS has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
ESS has a Debt to Equity ratio (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.5
WACC7.14%
2.3 Liquidity
ESS has a Current Ratio of 0.59. This is a bad value and indicates that ESS is not financially healthy enough and could expect problems in meeting its short term obligations.
ESS has a Current ratio of 0.59. This is comparable to the rest of the industry: ESS outperforms 55.00% of its industry peers.
A Quick Ratio of 0.32 indicates that ESS may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, ESS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.85% over the past year.
The Earnings Per Share has been growing slightly by 5.66% on average over the past years.
The Revenue has been growing slightly by 6.92% in the past year.
The Revenue has been growing slightly by 3.98% on average over the past years.
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.
Based on estimates for the next years, ESS will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
EPS Next Y21.59%
EPS Next 2Y-16.56%
EPS Next 3Y-9.17%
EPS Next 5Y-3.11%
Revenue Next Year6.35%
Revenue Next 2Y4.96%
Revenue Next 3Y4.5%
Revenue Next 5Y3.92%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.70 indicates a rather expensive valuation of ESS.
Based on the Price/Earnings ratio, ESS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
ESS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
ESS is valuated quite expensively with a Price/Forward Earnings ratio of 42.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ESS to the average of the S&P500 Index (23.79), we can say ESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
ESS's 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 -9.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.14
PEG (5Y)4.36
EPS Next 2Y-16.56%
EPS Next 3Y-9.17%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
ESS's Dividend Yield is slightly below the industry average, which is at 7.21.
Compared to an average S&P500 Dividend Yield of 1.87, ESS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of ESS has a limited annual growth rate of 4.65%.
ESS has paid a dividend for at least 10 years, which is a reliable track record.
ESS has decreased its dividend recently.
Dividend Growth(5Y)4.65%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ESS pays out 76.31% of its income as dividend. 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-16.56%
EPS Next 3Y-9.17%
257.62
-0.51 (-0.2%)
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 Change2.34%
Ins Owners1.14%
Ins Owner Change-0.05%
Market Cap16.59B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target290.33 (12.7%)
Short Float %3.64%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)-2.27%
PT rev (3m)-3.22%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)11.15%
EPS NY rev (3m)17.04%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 42 | ||
| P/S | 8.91 | ||
| P/FCF | N/A | ||
| P/OCF | 15.67 | ||
| P/B | 2.95 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 19.66 |
EPS(TTM)10.43
EY4.05%
EPS(NY)6.13
Fwd EY2.38%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.38%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)1.14
PEG (5Y)4.36
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 | 1.48 |
F-Score6
WACC7.14%
ROIC/WACC0.5
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 Y21.59%
EPS Next 2Y-16.56%
EPS Next 3Y-9.17%
EPS Next 5Y-3.11%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
Revenue Next Year6.35%
Revenue Next 2Y4.96%
Revenue Next 3Y4.5%
Revenue Next 5Y3.92%
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.
Can you provide the valuation status for ESSEX PROPERTY TRUST INC?
ChartMill assigns a valuation rating of 3 / 10 to ESSEX PROPERTY TRUST INC (ESS). This can be considered as Overvalued.
Can you provide the profitability details for ESSEX PROPERTY TRUST INC?
ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.
What is the financial health of ESSEX PROPERTY TRUST INC (ESS) stock?
The financial health rating of ESSEX PROPERTY TRUST INC (ESS) is 2 / 10.
What is the expected EPS growth for ESSEX PROPERTY TRUST INC (ESS) stock?
The Earnings per Share (EPS) of ESSEX PROPERTY TRUST INC (ESS) is expected to grow by 21.59% in the next year.