ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - NYSE:ESS - US2971781057 - REIT
268.36 USD
+2.13 (+0.8%)
Overall ESS gets a fundamental rating of 4 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 quite expensive at the moment. 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.
In the past 5 years ESS always reported a positive cash flow from operatings.
1.2 Ratios
ESS has a Return On Assets of 6.07%. This is amongst the best in the industry. ESS outperforms 90.00% of its industry peers.
The Return On Equity of ESS (14.20%) is better than 90.00% of its industry peers.
ESS has a Return On Invested Capital of 3.46%. This is amongst the best in the industry. ESS outperforms 85.00% 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 (3.46%) for ESS is above the 3 year average (3.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 14.2% | ||
| ROIC | 3.46% |
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
The Profit Margin of ESS (43.51%) is better than 95.00% of its industry peers.
ESS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 30.29%, ESS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ESS has declined.
The Gross Margin of ESS (70.55%) is better than 100.00% of its industry peers.
ESS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.29% | ||
| PM (TTM) | 43.51% | ||
| GM | 70.55% |
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.
ESS has about the same amout of shares outstanding than it did 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
Based on the Altman-Z score of 1.52, we must say that ESS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.52, ESS is doing good in the industry, outperforming 70.00% of the companies in the same industry.
ESS has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
ESS's Debt to Equity ratio of 1.20 is in line compared to the rest of the industry. ESS outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.49
WACC7.07%
2.3 Liquidity
ESS has a Current Ratio of 0.71. 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 (0.71) than 65.00% of its industry peers.
A Quick Ratio of 0.36 indicates that ESS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.36, ESS is in line with its industry, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.17% over the past year.
ESS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.66% yearly.
ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.56%.
Measured over the past years, ESS shows a small growth in Revenue. The Revenue has been growing by 3.98% on average per year.
EPS 1Y (TTM)20.17%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%137.24%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.71%
3.2 Future
ESS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.22% yearly.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y3.89%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
EPS Next 5Y-4.22%
Revenue Next Year6.46%
Revenue Next 2Y5.1%
Revenue Next 3Y4.62%
Revenue Next 5Y3.98%
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
A Price/Earnings ratio of 27.64 indicates a quite expensive valuation of ESS.
Compared to the rest of the industry, the Price/Earnings ratio of ESS indicates a rather cheap valuation: ESS is cheaper than 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ESS is valued at the same level.
A Price/Forward Earnings ratio of 44.78 indicates a quite expensive valuation of ESS.
ESS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESS is cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ESS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 44.78 |
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 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESS does not grow enough to justify the current Price/Earnings ratio.
ESS has an outstanding profitability rating, which may justify a higher PE ratio.
ESS's earnings are expected to decrease with -9.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)7.11
PEG (5Y)4.88
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, ESS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.68, ESS is paying slightly less dividend.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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
79.64% 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.
DP79.64%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
NYSE:ESS (9/18/2025, 10:09:05 AM)
268.36
+2.13 (+0.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change-0.59%
Ins Owners1.14%
Ins Owner Change4.31%
Market Cap17.28B
Analysts66.67
Price Target300 (11.79%)
Short Float %2.09%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP79.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)126.56%
Min EPS beat(2)123.13%
Max EPS beat(2)129.99%
EPS beat(4)3
Avg EPS beat(4)69.24%
Min EPS beat(4)-9.12%
Max EPS beat(4)129.99%
EPS beat(8)5
Avg EPS beat(8)59.09%
EPS beat(12)9
Avg EPS beat(12)55.58%
EPS beat(16)11
Avg EPS beat(16)49.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.32%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)-3.76%
PT rev (3m)-5.2%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)19.89%
EPS NY rev (3m)41.7%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 44.78 | ||
| P/S | 9.39 | ||
| P/FCF | N/A | ||
| P/OCF | 16.75 | ||
| P/B | 3.07 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 20.64 |
EPS(TTM)9.71
EY3.62%
EPS(NY)5.99
Fwd EY2.23%
FCF(TTM)-3.69
FCFYN/A
OCF(TTM)16.02
OCFY5.97%
SpS28.56
BVpS87.5
TBVpS87.5
PEG (NY)7.11
PEG (5Y)4.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 14.2% | ||
| ROCE | 4.37% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 3.47% | ||
| OM | 30.29% | ||
| PM (TTM) | 43.51% | ||
| GM | 70.55% | ||
| 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%
ROICexcg growth 3Y11.24%
ROICexcg 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 | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.85 | ||
| Cap/Depr | 212.3% | ||
| Cap/Sales | 69.02% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 89.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.52 |
F-Score6
WACC7.07%
ROIC/WACC0.49
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)20.17%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%137.24%
EPS Next Y3.89%
EPS Next 2Y-17.53%
EPS Next 3Y-9.64%
EPS Next 5Y-4.22%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.71%
Revenue Next Year6.46%
Revenue Next 2Y5.1%
Revenue Next 3Y4.62%
Revenue Next 5Y3.98%
EBIT growth 1Y4.68%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year136%
EBIT Next 3Y35.6%
EBIT Next 5Y27.49%
FCF growth 1Y-137.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.12%
OCF growth 3Y5.68%
OCF growth 5Y3.05%