ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESS - US2971781057 - REIT
250.09 USD
-0.93 (-0.37%)
250.09 USD
0 (0%)
Taking everything into account, ESS scores 5 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 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.
ESS had positive earnings in each of the past 5 years.
In the past 5 years ESS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ESS (6.44%) is better than 85.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.03%, ESS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
ESS has a better Return On Invested Capital (3.60%) than 90.00% of its industry peers.
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
Looking at the Profit Margin, with a value of 45.46%, ESS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ESS has grown nicely.
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.
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.
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.
ESS has a worse debt/assets ratio than last year.
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.
The Altman-Z score of ESS (1.44) is better than 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.
The Debt to Equity ratio of ESS (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.51
WACC7.1%
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.
The Current ratio of ESS (0.59) 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 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.
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.
Measured over the past years, ESS shows a small growth in Revenue. The Revenue has been growing by 3.98% on average per year.
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.
ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% 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 5Y4.42%
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
ESS is valuated rather expensively with a Price/Earnings ratio of 23.98.
Compared to the rest of the industry, the Price/Earnings ratio of ESS indicates a somewhat cheap valuation: ESS is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. ESS is around the same levels.
The Price/Forward Earnings ratio is 41.25, which means the current valuation is very expensive for ESS.
75.00% of the companies in the same industry are more expensive than ESS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, ESS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 41.25 |
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 | 19.3 |
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)1.11
PEG (5Y)4.24
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.
ESS's Dividend Yield is slightly below the industry average, which is at 32.52.
ESS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| 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
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-17.04%
EPS Next 3Y-9.39%
250.09
-0.93 (-0.37%)
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 Change0.03%
Ins Owners1.16%
Ins Owner Change3.82%
Market Cap16.11B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts65.16
Price Target288.22 (15.25%)
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-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)-0.73%
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 | 23.98 | ||
| Fwd PE | 41.25 | ||
| P/S | 8.65 | ||
| P/FCF | N/A | ||
| P/OCF | 15.22 | ||
| P/B | 2.86 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 19.3 |
EPS(TTM)10.43
EY4.17%
EPS(NY)6.06
Fwd EY2.42%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.57%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)1.11
PEG (5Y)4.24
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
WACC7.1%
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%.