ESSEX PROPERTY TRUST INC (ESS) Fundamental Analysis & Valuation

NYSE:ESS • US2971781057

Current stock price

263.35 USD
+0.14 (+0.05%)
At close:
263.35 USD
0 (0%)
After Hours:

This ESS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ESS Profitability Analysis

1.1 Basic Checks

  • In the past year ESS was profitable.
  • In the past year ESS had a positive cash flow from operations.
  • 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.
ESS Yearly Net Income VS EBIT VS OCF VS FCFESS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • ESS has a Return On Assets of 5.09%. This is in the better half of the industry: ESS outperforms 80.00% of its industry peers.
  • ESS has a Return On Equity of 12.08%. This is amongst the best in the industry. ESS outperforms 85.00% of its industry peers.
  • ESS has a Return On Invested Capital of 3.73%. This is amongst the best in the industry. ESS outperforms 90.00% of its industry peers.
  • ESS had an Average Return On Invested Capital over the past 3 years of 3.52%. This is in line with the industry average of 2.73%.
  • The 3 year average ROIC (3.52%) for ESS is below the current ROIC(3.73%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.09%
ROE 12.08%
ROIC 3.73%
ROA(3y)4.7%
ROA(5y)4.23%
ROE(3y)10.99%
ROE(5y)9.65%
ROIC(3y)3.52%
ROIC(5y)3.26%
ESS Yearly ROA, ROE, ROICESS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 35.48%, ESS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ESS has remained more or less at the same level.
  • ESS has a Operating Margin of 31.78%. This is amongst the best in the industry. ESS outperforms 95.00% of its industry peers.
  • In the last couple of years the Operating Margin of ESS has grown nicely.
  • Looking at the Gross Margin, with a value of 70.38%, ESS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ESS has remained more or less at the same level.
Industry RankSector Rank
OM 31.78%
PM (TTM) 35.48%
GM 70.38%
OM growth 3Y0.51%
OM growth 5Y2.03%
PM growth 3Y11.77%
PM growth 5Y-1.38%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
ESS Yearly Profit, Operating, Gross MarginsESS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. ESS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESS is destroying value.
  • Compared to 1 year ago, ESS has more shares outstanding
  • The number of shares outstanding for ESS has been reduced compared to 5 years ago.
  • The debt/assets ratio for ESS is higher compared to a year ago.
ESS Yearly Shares OutstandingESS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
ESS Yearly Total Debt VS Total AssetsESS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • ESS has an Altman-Z score of 1.50. This is a bad value and indicates that ESS is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.50, ESS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • ESS has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
  • ESS's Debt to Equity ratio of 1.23 is in line compared to the rest of the industry. ESS outperforms 45.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 1.5
ROIC/WACC0.51
WACC7.32%
ESS Yearly LT Debt VS Equity VS FCFESS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • ESS has a Current Ratio of 0.73. 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 better Current ratio (0.73) than 65.00% of its industry peers.
  • A Quick Ratio of 0.39 indicates that ESS may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.39, ESS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.39
ESS Yearly Current Assets VS Current LiabilitesESS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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4

3. ESS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 46.50% over the past year.
  • ESS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.00% yearly.
  • The Revenue has been growing slightly by 6.36% in the past year.
  • Measured over the past years, ESS shows a small growth in Revenue. The Revenue has been growing by 4.76% on average per year.
EPS 1Y (TTM)46.5%
EPS 3Y18.35%
EPS 5Y13%
EPS Q2Q%28.48%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y5.51%
Revenue growth 5Y4.76%
Sales Q2Q%4.91%

3.2 Future

  • Based on estimates for the next years, ESS will show a decrease in Earnings Per Share. The EPS will decrease by -6.39% on average per year.
  • ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y-44.14%
EPS Next 2Y-23.43%
EPS Next 3Y-13.67%
EPS Next 5Y-6.39%
Revenue Next Year4.07%
Revenue Next 2Y3.71%
Revenue Next 3Y3.88%
Revenue Next 5Y2.99%

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 decreasing: in the next years the growth will be less than in the last years.
ESS Yearly Revenue VS EstimatesESS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B
ESS Yearly EPS VS EstimatesESS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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2

4. ESS Valuation Analysis

4.1 Price/Earnings Ratio

  • ESS is valuated rather expensively with a Price/Earnings ratio of 23.28.
  • 80.00% of the companies in the same industry are more expensive than ESS, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ESS to the average of the S&P500 Index (26.64), we can say ESS is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 43.15, the valuation of ESS can be described as expensive.
  • 65.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, ESS is valued quite expensively.
Industry RankSector Rank
PE 23.28
Fwd PE 43.15
ESS Price Earnings VS Forward Price EarningsESS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.62
ESS Per share dataESS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The excellent profitability rating of ESS may justify a higher PE ratio.
  • ESS's earnings are expected to decrease with -13.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.79
EPS Next 2Y-23.43%
EPS Next 3Y-13.67%

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3

5. ESS Dividend Analysis

5.1 Amount

  • ESS has a Yearly Dividend Yield of 3.91%.
  • Compared to an average industry Dividend Yield of 9.15, ESS is paying slightly less dividend.
  • ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.91%

5.2 History

  • The dividend of ESS has a limited annual growth rate of 4.42%.
  • 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)4.42%
Div Incr Years1
Div Non Decr Years1
ESS Yearly Dividends per shareESS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • ESS pays out 97.67% 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.
DP97.67%
EPS Next 2Y-23.43%
EPS Next 3Y-13.67%
ESS Yearly Income VS Free CF VS DividendESS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M
ESS Dividend Payout.ESS Dividend Payout, showing the Payout Ratio.ESS Dividend Payout.PayoutRetained Earnings

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ESS Fundamentals: All Metrics, Ratios and Statistics

ESSEX PROPERTY TRUST INC

NYSE:ESS (5/1/2026, 8:24:07 PM)

After market: 263.35 0 (0%)

263.35

+0.14 (+0.05%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Industry Strength25.47
Industry Growth35.4
Earnings (Last)04-28
Earnings (Next)07-27
Inst Owners102.69%
Inst Owner Change0.02%
Ins Owners0.7%
Ins Owner Change3.42%
Market Cap16.98B
Revenue(TTM)1.89B
Net Income(TTM)669.67M
Analysts64.52
Price Target283.14 (7.51%)
Short Float %2.74%
Short Ratio3.77
Dividend
Industry RankSector Rank
Dividend Yield 3.91%
Yearly Dividend10.16
Dividend Growth(5Y)4.42%
DP97.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.36%
Min EPS beat(2)-16.38%
Max EPS beat(2)73.1%
EPS beat(4)3
Avg EPS beat(4)77.46%
Min EPS beat(4)-16.38%
Max EPS beat(4)129.99%
EPS beat(8)6
Avg EPS beat(8)70.63%
EPS beat(12)8
Avg EPS beat(12)51.95%
EPS beat(16)10
Avg EPS beat(16)42.55%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.34%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)-0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)2
Avg Revenue beat(12)-0.59%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.58%
PT rev (3m)-1.32%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-5.03%
EPS NY rev (1m)-3.3%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.51%
Valuation
Industry RankSector Rank
PE 23.28
Fwd PE 43.15
P/S 9
P/FCF N/A
P/OCF 15.8
P/B 3.06
P/tB 3.06
EV/EBITDA 19.62
EPS(TTM)11.31
EY4.29%
EPS(NY)6.1
Fwd EY2.32%
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)16.66
OCFY6.33%
SpS29.27
BVpS85.94
TBVpS85.94
PEG (NY)N/A
PEG (5Y)1.79
Graham Number147.883 (-43.85%)
Profitability
Industry RankSector Rank
ROA 5.09%
ROE 12.08%
ROCE 4.73%
ROIC 3.73%
ROICexc 3.76%
ROICexgc 3.76%
OM 31.78%
PM (TTM) 35.48%
GM 70.38%
FCFM N/A
ROA(3y)4.7%
ROA(5y)4.23%
ROE(3y)10.99%
ROE(5y)9.65%
ROIC(3y)3.52%
ROIC(5y)3.26%
ROICexc(3y)3.57%
ROICexc(5y)3.3%
ROICexgc(3y)3.58%
ROICexgc(5y)3.3%
ROCE(3y)4.45%
ROCE(5y)4.13%
ROICexgc growth 3Y4.14%
ROICexgc growth 5Y6.66%
ROICexc growth 3Y4.14%
ROICexc growth 5Y6.65%
OM growth 3Y0.51%
OM growth 5Y2.03%
PM growth 3Y11.77%
PM growth 5Y-1.38%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
F-Score5
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Debt/EBITDA 5.63
Cap/Depr 183.61%
Cap/Sales 59.1%
Interest Coverage 2.37
Cash Conversion 88.99%
Profit Quality N/A
Current Ratio 0.73
Quick Ratio 0.39
Altman-Z 1.5
F-Score5
WACC7.32%
ROIC/WACC0.51
Cap/Depr(3y)142.23%
Cap/Depr(5y)111.67%
Cap/Sales(3y)46.22%
Cap/Sales(5y)36.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.5%
EPS 3Y18.35%
EPS 5Y13%
EPS Q2Q%28.48%
EPS Next Y-44.14%
EPS Next 2Y-23.43%
EPS Next 3Y-13.67%
EPS Next 5Y-6.39%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y5.51%
Revenue growth 5Y4.76%
Sales Q2Q%4.91%
Revenue Next Year4.07%
Revenue Next 2Y3.71%
Revenue Next 3Y3.88%
Revenue Next 5Y2.99%
EBIT growth 1Y13.66%
EBIT growth 3Y6.05%
EBIT growth 5Y6.89%
EBIT Next Year108.69%
EBIT Next 3Y30.91%
EBIT Next 5Y22.52%
FCF growth 1Y49.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.57%
OCF growth 3Y3.27%
OCF growth 5Y5.99%

ESSEX PROPERTY TRUST INC / ESS Fundamental Analysis 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 2 / 10 to ESSEX PROPERTY TRUST INC (ESS). This can be considered as Overvalued.


What is the profitability of ESS stock?

ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.


What is the valuation of ESSEX PROPERTY TRUST INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ESSEX PROPERTY TRUST INC (ESS) is 23.28 and the Price/Book (PB) ratio is 3.06.


Can you provide the financial health for ESS stock?

The financial health rating of ESSEX PROPERTY TRUST INC (ESS) is 2 / 10.