ESSEX PROPERTY TRUST INC (ESS)
US2971781057 - REIT
ESS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While ESS belongs to the best of the industry regarding profitability, there are concerns on its financial health. ESS is not valued too expensively and it also shows 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.
Each year in the past 5 years ESS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ESS (4.34%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.11%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
ESS's Return On Invested Capital of 3.44% is fine compared to the rest of the industry. ESS outperforms 80.00% 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 2.61%.
The last Return On Invested Capital (3.44%) for ESS is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.11% | ||
| ROIC | 3.44% |
ROA(3y)3.45%
ROA(5y)3.64%
ROE(3y)7.59%
ROE(5y)7.86%
ROIC(3y)3.08%
ROIC(5y)3.02%
1.3 Margins
Looking at the Profit Margin, with a value of 31.55%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESS has declined.
With a decent Operating Margin value of 30.39%, ESS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ESS's Operating Margin has been stable in the last couple of years.
ESS has a better Gross Margin (70.83%) than 95.00% of its industry peers.
ESS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.39% | ||
| PM (TTM) | 31.55% | ||
| GM | 70.83% |
OM growth 3Y3.12%
OM growth 5Y-0.4%
PM growth 3Y-13.86%
PM growth 5Y-2.7%
GM growth 3Y0.17%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESS is destroying value.
Compared to 1 year ago, ESS has less shares outstanding
ESS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ESS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that ESS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ESS (1.59) is better than 75.00% of its industry peers.
The Debt to FCF ratio of ESS is 42.01, which is on the high side as it means it would take ESS, 42.01 years of fcf income to pay off all of its debts.
ESS has a Debt to FCF ratio (42.01) which is comparable to the rest of the industry.
ESS has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
ESS has a Debt to Equity ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 42.01 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.46
WACC7.42%
2.3 Liquidity
A Current Ratio of 0.40 indicates that ESS may have some problems paying its short term obligations.
ESS's Current ratio of 0.40 is in line compared to the rest of the industry. ESS outperforms 45.00% of its industry peers.
ESS has a Quick Ratio of 0.40. This is a bad value and indicates that ESS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.35, ESS perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.43% over the past year.
Measured over the past 5 years, ESS shows a small growth in Earnings Per Share. The EPS has been growing by 1.42% on average per year.
The Revenue has been growing slightly by 4.74% in the past year.
Measured over the past years, ESS shows a small growth in Revenue. The Revenue has been growing by 3.58% on average per year.
EPS 1Y (TTM)30.43%
EPS 3Y3.75%
EPS 5Y1.42%
EPS Q2Q%187.5%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y3.73%
Revenue growth 5Y3.58%
Sales Q2Q%7.52%
3.2 Future
The Earnings Per Share is expected to grow by 2.01% 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 2.55% on average per year.
EPS Next Y34.97%
EPS Next 2Y-1.67%
EPS Next 3Y1.12%
EPS Next 5Y2.01%
Revenue Next Year5.42%
Revenue Next 2Y4.91%
Revenue Next 3Y4.64%
Revenue Next 5Y2.55%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ESS is valuated quite expensively with a Price/Earnings ratio of 26.40.
Compared to the rest of the industry, the Price/Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 75.00% of the companies listed in the same industry.
ESS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 45.99, the valuation of ESS can be described as expensive.
Based on the Price/Forward Earnings ratio, ESS is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ESS to the average of the S&P500 Index (23.28), we can say ESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.4 | ||
| Fwd PE | 45.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESS indicates a slightly more expensive valuation: ESS is more expensive than 70.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ESS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.01 | ||
| EV/EBITDA | 21.92 |
4.3 Compensation for Growth
ESS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ESS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)18.57
EPS Next 2Y-1.67%
EPS Next 3Y1.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, ESS has a reasonable but not impressive dividend return.
ESS's Dividend Yield is slightly below the industry average, which is at 4.05.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of ESS has a limited annual growth rate of 3.57%.
ESS has been paying a dividend for at least 10 years, so it has a reliable track record.
ESS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.57%
Div Incr Years29
Div Non Decr Years29
5.3 Sustainability
ESS pays out 111.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ESS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP111.25%
EPS Next 2Y-1.67%
EPS Next 3Y1.12%
ESSEX PROPERTY TRUST INC
NYSE:ESS (11/4/2024, 8:05:50 PM)
After market: 280.61 0 (0%)280.61
+3.64 (+1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.4 | ||
| Fwd PE | 45.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.75
PEG (5Y)18.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.39% | ||
| PM (TTM) | 31.55% | ||
| GM | 70.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.43%
EPS 3Y3.75%
EPS 5Y
EPS Q2Q%
EPS Next Y34.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.74%
Revenue growth 3Y3.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y