ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
NYSE:ESS - New York Stock Exchange, Inc. - US2971781057 - REIT
Overall ESS gets a fundamental rating of 5 out of 10. We evaluated ESS against 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
In the past year ESS was profitable.
In the past year ESS had a positive cash flow from operations.
ESS had positive earnings in each of the past 5 years.
ESS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESS has a better Return On Assets (4.34%) than 80.00% of its industry peers.
ESS has a better Return On Equity (10.11%) than 90.00% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for ESS is in line with the industry average of 2.61%.
The 3 year average ROIC (3.08%) for ESS is below the current ROIC(3.44%), indicating increased profibility in the last year.
| 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 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESS has declined.
ESS has a Operating Margin of 30.39%. This is in the better half of the industry: ESS outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of ESS has remained more or less at the same level.
ESS has a better Gross Margin (70.83%) than 95.00% 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 | 30.39% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESS is destroying value.
The number of shares outstanding for ESS has been reduced compared to 1 year ago.
Compared to 5 years ago, ESS has less shares outstanding
The debt/assets ratio for ESS is higher compared to a year ago.
2.2 Solvency
ESS has an Altman-Z score of 1.62. This is a bad value and indicates that ESS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ESS (1.62) is better than 70.00% of its industry peers.
ESS has a debt to FCF ratio of 42.01. This is a negative value and a sign of low solvency as ESS would need 42.01 years to pay back of all of its debts.
ESS has a Debt to FCF ratio of 42.01. This is comparable to the rest of the industry: ESS outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that ESS has dependencies on debt financing.
ESS has a Debt to Equity ratio (1.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 42.01 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.45
WACC7.61%
2.3 Liquidity
ESS has a Current 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.
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.
A Quick Ratio of 0.35 indicates that ESS may have some problems paying its short term obligations.
The Quick ratio of ESS (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.03% 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.
Looking at the last year, ESS shows a small growth in Revenue. The Revenue has grown by 4.74% in the last year.
The Revenue has been growing slightly by 3.58% on average over the past years.
EPS 1Y (TTM)5.03%
EPS 3Y3.75%
EPS 5Y1.42%
EPS Q2Q%35.29%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y3.73%
Revenue growth 5Y3.58%
Sales Q2Q%6.91%
3.2 Future
ESS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.25% yearly.
Based on estimates for the next years, ESS will show a small growth in Revenue. The Revenue will grow by 4.29% on average per year.
EPS Next Y37.49%
EPS Next 2Y-2.03%
EPS Next 3Y0.58%
EPS Next 5Y3.25%
Revenue Next Year5.89%
Revenue Next 2Y5.48%
Revenue Next 3Y4.91%
Revenue Next 5Y4.29%
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.
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
With a Price/Earnings ratio of 33.32, ESS can be considered very expensive at the moment.
ESS's Price/Earnings ratio is a bit cheaper when compared to the industry. ESS is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. ESS is around the same levels.
The Price/Forward Earnings ratio is 47.10, which means the current valuation is very expensive for ESS.
70.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
ESS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 47.1 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than ESS, based on the Enterprise Value to EBITDA ratio.
ESS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.97 | ||
| EV/EBITDA | 22.29 |
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)0.89
PEG (5Y)23.44
EPS Next 2Y-2.03%
EPS Next 3Y0.58%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 4.29, ESS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, ESS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
111.25% of the earnings are spent on dividend by ESS. 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-2.03%
EPS Next 3Y0.58%
ESSEX PROPERTY TRUST INC
NYSE:ESS (1/21/2025, 8:04:00 PM)
After market: 285.24 0 (0%)285.24
+1.83 (+0.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.44%
Inst Owner Change-0.69%
Ins Owners1.11%
Ins Owner Change0.87%
Market Cap18.33B
Analysts65.33
Price Target312.83 (9.67%)
Short Float %1.39%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend9.11
Dividend Growth(5Y)3.57%
DP111.25%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.58%
Min EPS beat(2)6.19%
Max EPS beat(2)32.98%
EPS beat(4)3
Avg EPS beat(4)58.42%
Min EPS beat(4)-30.66%
Max EPS beat(4)225.19%
EPS beat(8)6
Avg EPS beat(8)52.2%
EPS beat(12)8
Avg EPS beat(12)39.52%
EPS beat(16)12
Avg EPS beat(16)48.69%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)1.43%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)1.43%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)6
Avg Revenue beat(16)-0.22%
PT rev (1m)0.62%
PT rev (3m)2.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 47.1 | ||
| P/S | 10.53 | ||
| P/FCF | 120.97 | ||
| P/OCF | 17.4 | ||
| P/B | 3.37 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 22.29 |
EPS(TTM)8.56
EY3%
EPS(NY)6.06
Fwd EY2.12%
FCF(TTM)2.36
FCFY0.83%
OCF(TTM)16.39
OCFY5.75%
SpS27.1
BVpS84.55
TBVpS84.55
PEG (NY)0.89
PEG (5Y)23.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.11% | ||
| ROCE | 4.35% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.46% | ||
| ROICexgc | 3.46% | ||
| OM | 30.39% | ||
| PM (TTM) | 31.55% | ||
| GM | 70.83% | ||
| FCFM | 8.7% |
ROA(3y)3.45%
ROA(5y)3.64%
ROE(3y)7.59%
ROE(5y)7.86%
ROIC(3y)3.08%
ROIC(5y)3.02%
ROICexc(3y)3.12%
ROICexc(5y)3.06%
ROICexgc(3y)3.13%
ROICexgc(5y)3.06%
ROCE(3y)3.9%
ROCE(5y)3.82%
ROICexcg growth 3Y9.75%
ROICexcg growth 5Y3.86%
ROICexc growth 3Y9.73%
ROICexc growth 5Y3.85%
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%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 42.01 | ||
| Debt/EBITDA | 5.79 | ||
| Cap/Depr | 158.32% | ||
| Cap/Sales | 51.79% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 95.87% | ||
| Profit Quality | 27.58% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.62 |
F-Score5
WACC7.61%
ROIC/WACC0.45
Cap/Depr(3y)58.82%
Cap/Depr(5y)81.43%
Cap/Sales(3y)20.27%
Cap/Sales(5y)27.99%
Profit Quality(3y)150.1%
Profit Quality(5y)114.11%
High Growth Momentum
Growth
EPS 1Y (TTM)5.03%
EPS 3Y3.75%
EPS 5Y1.42%
EPS Q2Q%35.29%
EPS Next Y37.49%
EPS Next 2Y-2.03%
EPS Next 3Y0.58%
EPS Next 5Y3.25%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y3.73%
Revenue growth 5Y3.58%
Sales Q2Q%6.91%
Revenue Next Year5.89%
Revenue Next 2Y5.48%
Revenue Next 3Y4.91%
Revenue Next 5Y4.29%
EBIT growth 1Y-0.37%
EBIT growth 3Y6.97%
EBIT growth 5Y3.16%
EBIT Next Year114.29%
EBIT Next 3Y32.02%
EBIT Next 5Y19.92%
FCF growth 1Y-77.69%
FCF growth 3Y97.84%
FCF growth 5Y9.15%
OCF growth 1Y3.9%
OCF growth 3Y6.86%
OCF growth 5Y3.46%