ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
258.27 USD
+4.75 (+1.87%)
258.27 USD
0 (0%)
ESS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. ESS scores excellent on profitability, but 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.
- ESS had positive earnings in each of the past 5 years.
- Each year in the past 5 years ESS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ESS (6.44%) is better than 85.00% of its industry peers.
- 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
- ESS's Profit Margin of 45.46% is amongst the best of the industry. ESS outperforms 95.00% of its industry peers.
- ESS's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 30.96%, ESS belongs to the top 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.
- ESS has a Gross Margin of 70.42%. This is amongst the best in the industry. ESS outperforms 100.00% of its industry peers.
- ESS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.96% | ||
| 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.
- 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
- The debt/assets ratio for ESS is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.46, we must say that ESS is in the distress zone and 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.
- 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 | 1.46 |
ROIC/WACC0.51
WACC7.13%
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.
- With a Current ratio value of 0.59, ESS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- A Quick Ratio of 0.32 indicates that ESS may have some problems paying its short term obligations.
- ESS has a Quick ratio (0.32) which is in line with its industry peers.
| 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.
- Measured over the past 5 years, ESS shows a small growth in Earnings Per Share. The EPS has been growing by 5.66% on average per year.
- ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.92%.
- 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 4.42% on average over the next years.
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 5Y4.42%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ESS is valuated rather expensively with a Price/Earnings ratio of 24.76.
- Based on the Price/Earnings ratio, ESS is valued a bit cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ESS to the average of the S&P500 Index (27.47), we can say ESS is valued inline with the index average.
- ESS is valuated quite expensively with a Price/Forward Earnings ratio of 42.60.
- Based on the Price/Forward Earnings ratio, ESS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- ESS is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 42.6 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are cheaper than ESS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.44 |
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.
- ESS's earnings are expected to decrease with -9.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.15
PEG (5Y)4.38
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
5. Dividend
5.1 Amount
- ESS has a Yearly Dividend Yield of 4.00%, which is a nice return.
- Compared to an average industry Dividend Yield of 32.52, ESS is paying slightly less dividend.
- ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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.
- 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-17.04%
EPS Next 3Y-9.39%
258.27
+4.75 (+1.87%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners103.27%
Inst Owner Change0.03%
Ins Owners1.16%
Ins Owner Change3.82%
Market Cap16.63B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts65.16
Price Target288.22 (11.6%)
Short Float %3.27%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP76.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-02 2026-01-02 (2.57)
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)-0.73%
PT rev (3m)-3.92%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)10.97%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 42.6 | ||
| P/S | 8.93 | ||
| P/FCF | N/A | ||
| P/OCF | 15.71 | ||
| P/B | 2.95 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 19.44 |
EPS(TTM)10.43
EY4.04%
EPS(NY)6.06
Fwd EY2.35%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.36%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)1.15
PEG (5Y)4.38
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
WACC7.13%
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 5Y4.42%
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 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 21.52% 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%.