ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
262.16 USD
+1.04 (+0.4%)
262.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ESS. ESS was compared to 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. While showing a medium growth rate, ESS is valued expensive at the moment.
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.
In the past 5 years ESS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.44%, ESS belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
ESS has a Return On Equity of 15.03%. This is amongst the best in the industry. ESS outperforms 90.00% of its industry peers.
ESS's Return On Invested Capital of 3.60% is amongst the best of the industry. ESS outperforms 90.00% 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 (3.60%) 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.
ESS has a better Operating Margin (30.96%) than 95.00% of its industry peers.
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.
ESS's Gross Margin has been stable in the last couple of years.
| 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
Compared to 1 year ago, ESS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that ESS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ESS (1.50) 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 of 1.18. This is comparable to the rest of the industry: ESS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.51
WACC7.12%
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.
Looking at the Quick ratio, with a value of 0.32, ESS is in line with its industry, outperforming 55.00% of the companies in the same industry.
| 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.
ESS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.66% yearly.
The Revenue has been growing slightly by 6.92% in the past year.
ESS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.98% yearly.
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 Y21.52%
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
EPS Next 5Y-3.11%
Revenue Next Year6.52%
Revenue Next 2Y5.04%
Revenue Next 3Y4.6%
Revenue Next 5Y3.92%
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
With a Price/Earnings ratio of 25.14, ESS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ESS is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ESS is valued at the same level.
Based on the Price/Forward Earnings ratio of 43.24, the valuation of ESS can be described as expensive.
75.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
ESS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 43.24 |
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 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.91 |
4.3 Compensation for Growth
ESS's 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 -9.39% in the coming years.
PEG (NY)1.17
PEG (5Y)4.44
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.48, ESS is paying slightly less dividend.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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
76.31% of the earnings are spent on dividend by ESS. 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-17.04%
EPS Next 3Y-9.39%
262.16
+1.04 (+0.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.27%
Inst Owner Change2.34%
Ins Owners1.14%
Ins Owner Change4.38%
Market Cap16.88B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target288.22 (9.94%)
Short Float %3.56%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)-1.12%
PT rev (3m)-3.92%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)11.09%
EPS NY rev (3m)10.97%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 43.24 | ||
| P/S | 9.07 | ||
| P/FCF | N/A | ||
| P/OCF | 15.95 | ||
| P/B | 3 | ||
| P/tB | 3 | ||
| EV/EBITDA | 19.91 |
EPS(TTM)10.43
EY3.98%
EPS(NY)6.06
Fwd EY2.31%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.27%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)1.17
PEG (5Y)4.44
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 | 1.5 |
F-Score6
WACC7.12%
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 Y21.52%
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
EPS Next 5Y-3.11%
Revenue 1Y (TTM)6.92%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.62%
Revenue Next Year6.52%
Revenue Next 2Y5.04%
Revenue Next 3Y4.6%
Revenue Next 5Y3.92%
EBIT growth 1Y8.93%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year136.36%
EBIT Next 3Y35.47%
EBIT Next 5Y26.96%
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 3 / 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 21.52% in the next year.