ESSEX PROPERTY TRUST INC (ESS) Stock Fundamental Analysis
USA - NYSE:ESS - US2971781057 - REIT
264.66 USD
+0.9 (+0.34%)
264.66 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. 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.
Each year in the past 5 years ESS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ESS (6.07%) is better than 90.00% of its industry peers.
ESS has a better Return On Equity (14.20%) than 90.00% of its industry peers.
ESS's Return On Invested Capital of 3.46% is amongst the best of the industry. ESS outperforms 85.00% 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 3 year average ROIC (3.38%) for ESS is below the current ROIC(3.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 14.2% | ||
| ROIC | 3.46% |
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 43.51%, 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.
The Operating Margin of ESS (30.29%) is better than 90.00% of its industry peers.
In the last couple of years the Operating Margin of ESS has declined.
With an excellent Gross Margin value of 70.55%, ESS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ESS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.29% | ||
| PM (TTM) | 43.51% | ||
| GM | 70.55% |
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.
ESS has about the same amout of shares outstanding than it did 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 1.50. This is a bad value and indicates that ESS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ESS (1.50) is better than 70.00% of its industry peers.
ESS has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
ESS has a Debt to Equity ratio of 1.20. This is comparable to the rest of the industry: ESS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.49
WACC7.05%
2.3 Liquidity
ESS has a Current Ratio of 0.71. 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 of 0.71. This is in the better half of the industry: ESS outperforms 65.00% of its industry peers.
A Quick Ratio of 0.36 indicates that ESS may have some problems paying its short term obligations.
ESS's Quick ratio of 0.36 is in line compared to the rest of the industry. ESS outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.17% over the past year.
The Earnings Per Share has been growing slightly by 5.66% on average over the past years.
The Revenue has been growing slightly by 7.56% 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)20.17%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%137.24%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.71%
3.2 Future
Based on estimates for the next years, ESS will show a decrease in Earnings Per Share. The EPS will decrease by -4.22% on average per year.
ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y9.51%
EPS Next 2Y-17.61%
EPS Next 3Y-9.74%
EPS Next 5Y-4.22%
Revenue Next Year6.58%
Revenue Next 2Y5.18%
Revenue Next 3Y4.74%
Revenue Next 5Y3.98%
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 quite expensively with a Price/Earnings ratio of 27.26.
Based on the Price/Earnings ratio, ESS is valued cheaper than 85.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, ESS is valued at the same level.
Based on the Price/Forward Earnings ratio of 44.26, 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 (22.92), we can say ESS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 44.26 |
4.2 Price Multiples
75.00% 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 | 20.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESS does not grow enough to justify the current Price/Earnings ratio.
ESS has an outstanding profitability rating, which may justify a higher PE ratio.
ESS's earnings are expected to decrease with -9.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.87
PEG (5Y)4.82
EPS Next 2Y-17.61%
EPS Next 3Y-9.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, ESS has a reasonable but not impressive dividend return.
ESS's Dividend Yield is slightly below the industry average, which is at 7.06.
Compared to an average S&P500 Dividend Yield of 2.32, ESS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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
79.64% 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.
DP79.64%
EPS Next 2Y-17.61%
EPS Next 3Y-9.74%
264.66
+0.9 (+0.34%)
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 Change-0.04%
Ins Owners1.14%
Ins Owner Change4.31%
Market Cap17.04B
Revenue(TTM)1.84B
Net Income(TTM)800.35M
Analysts66.45
Price Target300 (13.35%)
Short Float %2.65%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend9.66
Dividend Growth(5Y)4.65%
DP79.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)126.56%
Min EPS beat(2)123.13%
Max EPS beat(2)129.99%
EPS beat(4)3
Avg EPS beat(4)69.24%
Min EPS beat(4)-9.12%
Max EPS beat(4)129.99%
EPS beat(8)5
Avg EPS beat(8)59.09%
EPS beat(12)9
Avg EPS beat(12)55.58%
EPS beat(16)11
Avg EPS beat(16)49.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.32%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)-5.27%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)5.41%
EPS NY rev (3m)26.38%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 44.26 | ||
| P/S | 9.27 | ||
| P/FCF | N/A | ||
| P/OCF | 16.52 | ||
| P/B | 3.02 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 20.5 |
EPS(TTM)9.71
EY3.67%
EPS(NY)5.98
Fwd EY2.26%
FCF(TTM)-3.69
FCFYN/A
OCF(TTM)16.02
OCFY6.05%
SpS28.56
BVpS87.5
TBVpS87.5
PEG (NY)2.87
PEG (5Y)4.82
Graham Number138.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 14.2% | ||
| ROCE | 4.37% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 3.47% | ||
| OM | 30.29% | ||
| PM (TTM) | 43.51% | ||
| GM | 70.55% | ||
| 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 | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.85 | ||
| Cap/Depr | 212.3% | ||
| Cap/Sales | 69.02% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 89.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.5 |
F-Score6
WACC7.05%
ROIC/WACC0.49
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)20.17%
EPS 3Y5.47%
EPS 5Y5.66%
EPS Q2Q%137.24%
EPS Next Y9.51%
EPS Next 2Y-17.61%
EPS Next 3Y-9.74%
EPS Next 5Y-4.22%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y7.2%
Revenue growth 5Y3.98%
Sales Q2Q%5.71%
Revenue Next Year6.58%
Revenue Next 2Y5.18%
Revenue Next 3Y4.74%
Revenue Next 5Y3.98%
EBIT growth 1Y4.68%
EBIT growth 3Y10.86%
EBIT growth 5Y1.43%
EBIT Next Year134.72%
EBIT Next 3Y35.64%
EBIT Next 5Y27.24%
FCF growth 1Y-137.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.12%
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 9.51% in the next year.