ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
256.95 USD
+5.89 (+2.35%)
256.95 USD
0 (0%)
Taking everything into account, ESS scores 4 out of 10 in our fundamental rating. ESS was compared to 20 industry peers in the Residential REITs industry. ESS scores excellent on profitability, 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
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.
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's Return On Equity of 15.03% is amongst the best of the industry. ESS outperforms 90.00% of its industry peers.
ESS has a better Return On Invested Capital (3.60%) than 90.00% of its industry peers.
ESS had an Average Return On Invested Capital over the past 3 years of 3.38%. This is in line with the industry average of 2.59%.
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 has a better Profit Margin (45.46%) than 95.00% of its industry peers.
ESS's Profit Margin has improved in the last couple of years.
ESS has a Operating Margin of 30.96%. This is amongst the best in the industry. ESS outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of ESS has declined.
Looking at the Gross Margin, with a value of 70.42%, ESS belongs to the top 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.
Compared to 1 year ago, ESS has about the same amount of shares outstanding.
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
Based on the Altman-Z score of 1.44, we must say that ESS is in the distress zone and has some risk of bankruptcy.
ESS has a Altman-Z score of 1.44. 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.
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 | 1.44 |
ROIC/WACC0.51
WACC7.11%
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.
ESS's Quick ratio of 0.32 is in line compared to the rest of the industry. ESS outperforms 55.00% of its industry peers.
| 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.
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
ESS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.11% yearly.
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
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 24.64.
Based on the Price/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 at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 42.38, which means the current valuation is very expensive for ESS.
ESS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ESS is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. ESS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 42.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.3 |
4.3 Compensation for Growth
The 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)1.14
PEG (5Y)4.35
EPS Next 2Y-17.04%
EPS Next 3Y-9.39%
5. Dividend
5.1 Amount
ESS has a Yearly Dividend Yield of 3.93%.
Compared to an average industry Dividend Yield of 11.09, ESS is paying slightly less dividend.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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.
The dividend of ESS decreased 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.
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%
256.95
+5.89 (+2.35%)
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 Change0%
Ins Owners1.16%
Ins Owner Change3.82%
Market Cap16.55B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target288.22 (12.17%)
Short Float %3.27%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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)-0.26%
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 | 24.64 | ||
| Fwd PE | 42.38 | ||
| P/S | 8.89 | ||
| P/FCF | N/A | ||
| P/OCF | 15.63 | ||
| P/B | 2.94 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 19.3 |
EPS(TTM)10.43
EY4.06%
EPS(NY)6.06
Fwd EY2.36%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.4%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)1.14
PEG (5Y)4.35
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 | 1.44 |
F-Score6
WACC7.11%
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.
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 4 / 10 and the dividend payout ratio is 76.31%.