ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ESS • US2971781057
248.61 USD
-1.27 (-0.51%)
Last: Jan 30, 2026, 10:18 AM
Overall ESS gets a fundamental rating of 5 out of 10. We evaluated ESS against 20 industry peers in the Residential REITs industry. While ESS has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, ESS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year ESS was profitable.
- ESS had a positive operating cash flow in the past year.
- In the past 5 years ESS has always been profitable.
- In the past 5 years ESS always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.44%, ESS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- With an excellent Return On Equity value of 15.03%, ESS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- 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.
- ESS had an Average Return On Invested Capital over the past 3 years of 3.38%. This 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
- With an excellent Profit Margin value of 45.46%, ESS belongs to the best 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.
- ESS's Operating Margin of 30.96% is amongst the best of the industry. ESS outperforms 95.00% of its industry peers.
- ESS's Operating Margin has declined in the last couple of years.
- ESS's Gross Margin of 70.42% is amongst the best of the industry. ESS outperforms 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.
- Compared to 1 year ago, ESS has about the same amount of shares outstanding.
- Compared to 5 years ago, ESS has less shares outstanding
- 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.
- The Altman-Z score of ESS (1.44) is better than 70.00% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that ESS has dependencies on debt financing.
- ESS has a Debt to Equity ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.5
WACC7.15%
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 (0.59) which is comparable to the rest of the industry.
- A Quick Ratio of 0.32 indicates that ESS may have some problems paying its short term obligations.
- ESS's Quick ratio of 0.32 is in line compared 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
- 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.
- Looking at the last year, ESS shows a small growth in Revenue. The Revenue has grown by 6.92% in the last 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.
- ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y21.48%
EPS Next 2Y-17.11%
EPS Next 3Y-9.49%
EPS Next 5Y-3.11%
Revenue Next Year6.46%
Revenue Next 2Y4.99%
Revenue Next 3Y4.53%
Revenue Next 5Y4.42%
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 decreasing.
- 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 23.84.
- 80.00% of the companies in the same industry are more expensive than ESS, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ESS is valued at the same level.
- The Price/Forward Earnings ratio is 41.07, which means the current valuation is very expensive for ESS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 80.00% 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 (25.72), we can say ESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 41.07 |
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 | 19.24 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ESS has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as ESS's earnings are expected to decrease with -9.49% in the coming years.
PEG (NY)1.11
PEG (5Y)4.21
EPS Next 2Y-17.11%
EPS Next 3Y-9.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.06%, ESS is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 32.02, 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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.
- ESS has decreased its dividend 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-17.11%
EPS Next 3Y-9.49%
ESSEX PROPERTY TRUST INC / ESS FAQ
What is the fundamental rating for ESS stock?
ChartMill assigns a fundamental rating of 5 / 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 21.48% in the next year.
Is the dividend of ESSEX PROPERTY TRUST INC sustainable?
The dividend rating of ESSEX PROPERTY TRUST INC (ESS) is 5 / 10 and the dividend payout ratio is 76.31%.