ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - NYSE:ESS - US2971781057 - REIT
253.58 USD
+1.29 (+0.51%)
253.58 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.
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
ESS has a better Return On Assets (6.44%) 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.
With an excellent Return On Invested Capital value of 3.60%, ESS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 2.60%.
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 has a Profit Margin of 45.46%. This is amongst the best in the industry. ESS outperforms 95.00% of its industry peers.
In the last couple of years the Profit Margin of ESS has grown nicely.
The Operating Margin of ESS (30.96%) is better than 95.00% of its industry peers.
ESS's Operating Margin has declined in the last couple of years.
ESS has a better Gross Margin (70.42%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESS is destroying value.
The number of shares outstanding for ESS remains at a similar level compared to 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
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.
ESS has a Debt to Equity ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC0.51
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.59 indicates that ESS may have some problems paying its short term obligations.
With a Current ratio value of 0.59, ESS perfoms like the industry average, outperforming 50.00% 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's Quick ratio of 0.32 is in line compared to the rest of the industry. ESS outperforms 50.00% of 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.
ESS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.66% yearly.
ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.92%.
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
ESS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.11% yearly.
Based on estimates for the next years, ESS will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
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
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.
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
A Price/Earnings ratio of 24.31 indicates a rather expensive valuation of ESS.
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 25.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 41.97 indicates a quite expensive valuation of ESS.
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.
The average S&P500 Price/Forward Earnings ratio is at 34.98. ESS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 41.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ESS may justify a higher PE ratio.
ESS's earnings are expected to decrease with -9.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.59
PEG (5Y)4.3
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.
Compared to an average industry Dividend Yield of 7.25, ESS is paying slightly less dividend.
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
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-17.19%
EPS Next 3Y-9.79%
253.58
+1.29 (+0.51%)
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 Cap16.33B
Revenue(TTM)1.86B
Net Income(TTM)846.55M
Analysts66.45
Price Target297.06 (17.15%)
Short Float %3.43%
Short Ratio4.59
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 | 24.31 | ||
| Fwd PE | 41.97 | ||
| P/S | 8.77 | ||
| P/FCF | N/A | ||
| P/OCF | 15.43 | ||
| P/B | 2.9 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 19.44 |
EPS(TTM)10.43
EY4.11%
EPS(NY)6.04
Fwd EY2.38%
FCF(TTM)-2.23
FCFYN/A
OCF(TTM)16.44
OCFY6.48%
SpS28.92
BVpS87.44
TBVpS87.44
PEG (NY)2.59
PEG (5Y)4.3
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
WACC7.08%
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 5 / 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 9.39% in the next year.