ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - NYSE:ESS - US2971781057 - REIT
254.59 USD
+0.98 (+0.39%)
254.59 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. 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
ESS had positive earnings in the past year.
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
The Return On Assets of ESS (6.44%) is better than 90.00% of its industry peers.
The Return On Equity of ESS (15.03%) is better than 95.00% of its industry peers.
The Return On Invested Capital of ESS (3.60%) is better than 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 2.60%.
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
ESS's Profit Margin of 45.46% is amongst the best of the industry. ESS outperforms 100.00% 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.
ESS has a Gross Margin of 70.42%. This is amongst the best in 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESS is destroying value.
The number of shares outstanding for ESS remains at a similar level compared to 1 year ago.
The number of shares outstanding for ESS has been reduced compared to 5 years ago.
Compared to 1 year ago, ESS has a worse debt to assets ratio.
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.
ESS has a Altman-Z score of 1.46. This is in the better half of the industry: ESS outperforms 70.00% of its industry peers.
ESS has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.18, ESS perfoms like the industry average, outperforming 50.00% of the companies in the same 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 (0.59) which is comparable to the rest of the industry.
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.
ESS has a Quick ratio (0.32) which 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.
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
Based on estimates for the next years, ESS will show a decrease in Earnings Per Share. The EPS will decrease by -3.11% on average per year.
The Revenue is expected to grow by 3.92% on average over the next years.
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
ESS is valuated rather expensively with a Price/Earnings ratio of 24.41.
Based on the Price/Earnings ratio, ESS is valued cheaper than 85.00% 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 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 42.14, the valuation of ESS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 70.00% 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 (34.59), we can say ESS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 42.14 |
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 | 19.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 -9.79% in the coming years.
PEG (NY)2.6
PEG (5Y)4.31
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.
ESS's Dividend Yield is slightly below the industry average, which is at 7.22.
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.
The dividend of ESS decreased 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-17.19%
EPS Next 3Y-9.79%
254.59
+0.98 (+0.39%)
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 Cap16.40B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target297.06 (16.68%)
Short Float %2.71%
Short Ratio4.16
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 | 24.41 | ||
| Fwd PE | 42.14 | ||
| P/S | 8.8 | ||
| P/FCF | N/A | ||
| P/OCF | 15.49 | ||
| P/B | 2.91 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 19.5 |
EPS(TTM)10.43
EY4.1%
EPS(NY)6.04
Fwd EY2.37%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.46%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)2.6
PEG (5Y)4.31
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.