ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - NYSE:ESS - US2971781057 - REIT
255.73 USD
+1.1 (+0.43%)
255.73 USD
0 (0%)
Overall ESS gets a fundamental rating of 4 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. 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.
ESS had a positive operating cash flow in the past year.
In the past 5 years ESS has always been profitable.
ESS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESS has a Return On Assets of 6.44%. This is amongst the best in the industry. ESS outperforms 85.00% of its industry peers.
The Return On Equity of ESS (15.03%) is better than 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.60%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESS is in line with the industry average of 2.59%.
The last Return On Invested Capital (3.60%) for ESS is above the 3 year average (3.38%), which is a sign of increasing profitability.
| 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
The Profit Margin of ESS (45.46%) 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 30.96%, ESS belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
ESS's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 70.42%, ESS belongs to the best 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 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
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
ESS has an Altman-Z score of 1.46. This is a bad value and indicates that ESS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.46, ESS is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC0.51
WACC7.09%
2.3 Liquidity
A Current Ratio of 0.59 indicates that ESS may have some problems paying its short term obligations.
ESS has a Current ratio of 0.59. This is comparable to the rest of the industry: ESS outperforms 50.00% of its industry peers.
ESS has a Quick 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.
The Quick ratio of ESS (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
ESS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.85%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.66% on average over the past years.
ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.92%.
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 3.92% yearly.
EPS Next Y9.39%
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
EPS Next 5Y-3.11%
Revenue Next Year6.58%
Revenue Next 2Y5.18%
Revenue Next 3Y4.67%
Revenue Next 5Y3.92%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 24.52, ESS is valued on the expensive side.
Based on the Price/Earnings ratio, ESS is valued a bit cheaper than 80.00% of the companies in the same industry.
ESS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 42.33, ESS can be considered very expensive at the moment.
70.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.08. ESS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 42.33 |
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 | 19.5 |
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 -9.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.61
PEG (5Y)4.33
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, ESS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.21, ESS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, ESS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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
ESS pays out 76.31% of its income as dividend. This is not a sustainable payout ratio.
ESS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP76.31%
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
255.73
+1.1 (+0.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.51%
Inst Owner Change2.32%
Ins Owners1.14%
Ins Owner Change3.62%
Market Cap16.47B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target297.06 (16.16%)
Short Float %3.43%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP76.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.54%
Min EPS beat(2)73.1%
Max EPS beat(2)129.99%
EPS beat(4)3
Avg EPS beat(4)79.27%
Min EPS beat(4)-9.12%
Max EPS beat(4)129.99%
EPS beat(8)6
Avg EPS beat(8)68.85%
EPS beat(12)9
Avg EPS beat(12)61.22%
EPS beat(16)11
Avg EPS beat(16)49.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.4%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.27%
PT rev (1m)-0.98%
PT rev (3m)-4.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)26.24%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 42.33 | ||
| P/S | 8.84 | ||
| P/FCF | N/A | ||
| P/OCF | 15.56 | ||
| P/B | 2.92 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 19.5 |
EPS(TTM)10.43
EY4.08%
EPS(NY)6.04
Fwd EY2.36%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.43%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)2.61
PEG (5Y)4.33
Graham Number143.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 15.03% | ||
| ROCE | 4.56% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 3.62% | ||
| OM | 30.96% | ||
| PM (TTM) | 45.46% | ||
| GM | 70.42% | ||
| 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%
ROICexgc growth 3Y11.24%
ROICexgc 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 | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.65 | ||
| Cap/Depr | 199.48% | ||
| Cap/Sales | 64.56% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 89.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.46 |
F-Score6
WACC7.09%
ROIC/WACC0.51
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)21.85%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%39.13%
EPS Next Y9.39%
EPS Next 2Y-17.19%
EPS Next 3Y-9.79%
EPS Next 5Y-3.11%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
Revenue Next Year6.58%
Revenue Next 2Y5.18%
Revenue Next 3Y4.67%
Revenue Next 5Y3.92%
EBIT growth 1Y8.93%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year134.72%
EBIT Next 3Y35.64%
EBIT Next 5Y28.81%
FCF growth 1Y-121.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.22%
OCF growth 3Y5.68%
OCF growth 5Y3.05%
ESSEX PROPERTY TRUST INC / ESS FAQ
What is the fundamental rating for ESS stock?
ChartMill assigns a fundamental rating of 4 / 10 to ESS.
Can you provide the valuation status for ESSEX PROPERTY TRUST INC?
ChartMill assigns a valuation rating of 2 / 10 to ESSEX PROPERTY TRUST INC (ESS). This can be considered as Overvalued.
Can you provide the profitability details for ESSEX PROPERTY TRUST INC?
ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.
What is the financial health of ESSEX PROPERTY TRUST INC (ESS) stock?
The financial health rating of ESSEX PROPERTY TRUST INC (ESS) is 2 / 10.
What is the expected EPS growth for ESSEX PROPERTY TRUST INC (ESS) stock?
The Earnings per Share (EPS) of ESSEX PROPERTY TRUST INC (ESS) is expected to grow by 9.39% in the next year.