ESSEX PROPERTY TRUST INC (ESS) Fundamental Analysis & Valuation

NYSE:ESS • US2971781057

Current stock price

239.61 USD
-4.1 (-1.68%)
At close:
239.61 USD
0 (0%)
After Hours:

This ESS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ESS Profitability Analysis

1.1 Basic Checks

  • ESS had positive earnings in the past year.
  • In the past year ESS had a positive cash flow from operations.
  • In the past 5 years ESS has always been profitable.
  • ESS had a positive operating cash flow in each of the past 5 years.
ESS Yearly Net Income VS EBIT VS OCF VS FCFESS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of ESS (5.09%) is better than 80.00% of its industry peers.
  • With an excellent Return On Equity value of 12.08%, ESS belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • ESS's Return On Invested Capital of 3.73% 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 2.73%.
  • The 3 year average ROIC (3.52%) for ESS is below the current ROIC(3.73%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.09%
ROE 12.08%
ROIC 3.73%
ROA(3y)4.7%
ROA(5y)4.23%
ROE(3y)10.99%
ROE(5y)9.65%
ROIC(3y)3.52%
ROIC(5y)3.26%
ESS Yearly ROA, ROE, ROICESS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • The Profit Margin of ESS (35.48%) is better than 85.00% of its industry peers.
  • ESS's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of ESS (31.78%) is better than 95.00% of its industry peers.
  • ESS's Operating Margin has improved in the last couple of years.
  • ESS has a Gross Margin of 70.38%. 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 RankSector Rank
OM 31.78%
PM (TTM) 35.48%
GM 70.38%
OM growth 3Y0.51%
OM growth 5Y2.03%
PM growth 3Y11.77%
PM growth 5Y-1.38%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
ESS Yearly Profit, Operating, Gross MarginsESS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. ESS Health Analysis

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 more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ESS has been reduced compared to 5 years ago.
  • The debt/assets ratio for ESS is higher compared to a year ago.
ESS Yearly Shares OutstandingESS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
ESS Yearly Total Debt VS Total AssetsESS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • ESS has an Altman-Z score of 1.38. 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 (1.38) is better than 80.00% of its industry peers.
  • A Debt/Equity ratio of 1.23 is on the high side and indicates that ESS has dependencies on debt financing.
  • The Debt to Equity ratio of ESS (1.23) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Altman-Z 1.38
ROIC/WACC0.52
WACC7.23%
ESS Yearly LT Debt VS Equity VS FCFESS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • ESS has a Current Ratio of 0.73. 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 better Current ratio (0.73) than 65.00% of its industry peers.
  • A Quick Ratio of 0.39 indicates that ESS may have some problems paying its short term obligations.
  • ESS has a Quick ratio (0.39) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.39
ESS Yearly Current Assets VS Current LiabilitesESS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ESS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 18.16% over the past year.
  • ESS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.00% yearly.
  • The Revenue has been growing slightly by 6.36% in the past year.
  • Measured over the past years, ESS shows a small growth in Revenue. The Revenue has been growing by 4.76% on average per year.
EPS 1Y (TTM)18.16%
EPS 3Y18.35%
EPS 5Y13%
EPS Q2Q%-1.57%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y5.51%
Revenue growth 5Y4.76%
Sales Q2Q%5.59%

3.2 Future

  • Based on estimates for the next years, ESS will show a decrease in Earnings Per Share. The EPS will decrease by -6.14% on average per year.
  • ESS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y-42.24%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
EPS Next 5Y-6.14%
Revenue Next Year4.22%
Revenue Next 2Y3.81%
Revenue Next 3Y4.02%
Revenue Next 5Y2.64%

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 decreasing: in the next years the growth will be less than in the last years.
ESS Yearly Revenue VS EstimatesESS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B
ESS Yearly EPS VS EstimatesESS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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2

4. ESS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.02, ESS is valued on the expensive side.
  • ESS's Price/Earnings ratio is a bit cheaper when compared to the industry. ESS is cheaper than 80.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, ESS is valued at the same level.
  • ESS is valuated quite expensively with a Price/Forward Earnings ratio of 39.85.
  • Based on the Price/Forward Earnings ratio, ESS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. ESS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 23.02
Fwd PE 39.85
ESS Price Earnings VS Forward Price EarningsESS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 RankSector Rank
P/FCF N/A
EV/EBITDA 18.36
ESS Per share dataESS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The excellent profitability rating of ESS may justify a higher PE ratio.
  • ESS's earnings are expected to decrease with -12.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. ESS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.25%, ESS is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 46.72, ESS's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than ESS!
  • Compared to an average S&P500 Dividend Yield of 1.89, ESS pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.25%

5.2 History

  • The dividend of ESS has a limited annual growth rate of 4.42%.
  • 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)4.42%
Div Incr Years1
Div Non Decr Years1
ESS Yearly Dividends per shareESS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • 97.67% 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.
DP97.67%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
ESS Yearly Income VS Free CF VS DividendESS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M
ESS Dividend Payout.ESS Dividend Payout, showing the Payout Ratio.ESS Dividend Payout.PayoutRetained Earnings

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ESS Fundamentals: All Metrics, Ratios and Statistics

ESSEX PROPERTY TRUST INC

NYSE:ESS (3/27/2026, 8:14:08 PM)

After market: 239.61 0 (0%)

239.61

-4.1 (-1.68%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners102.46%
Inst Owner Change-1.6%
Ins Owners1.15%
Ins Owner Change3.42%
Market Cap15.45B
Revenue(TTM)1.89B
Net Income(TTM)669.67M
Analysts63.87
Price Target284.12 (18.58%)
Short Float %2.8%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 4.25%
Yearly Dividend10.16
Dividend Growth(5Y)4.42%
DP97.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.36%
Min EPS beat(2)-16.38%
Max EPS beat(2)73.1%
EPS beat(4)3
Avg EPS beat(4)77.46%
Min EPS beat(4)-16.38%
Max EPS beat(4)129.99%
EPS beat(8)6
Avg EPS beat(8)70.63%
EPS beat(12)8
Avg EPS beat(12)51.95%
EPS beat(16)10
Avg EPS beat(16)42.55%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.34%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)-0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)2
Avg Revenue beat(12)-0.59%
Revenue beat(16)5
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.58%
PT rev (3m)-1.43%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)-1.71%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.56%
Valuation
Industry RankSector Rank
PE 23.02
Fwd PE 39.85
P/S 8.19
P/FCF N/A
P/OCF 14.38
P/B 2.79
P/tB 2.79
EV/EBITDA 18.36
EPS(TTM)10.41
EY4.34%
EPS(NY)6.01
Fwd EY2.51%
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)16.66
OCFY6.95%
SpS29.27
BVpS85.94
TBVpS85.94
PEG (NY)N/A
PEG (5Y)1.77
Graham Number141.88
Profitability
Industry RankSector Rank
ROA 5.09%
ROE 12.08%
ROCE 4.73%
ROIC 3.73%
ROICexc 3.76%
ROICexgc 3.76%
OM 31.78%
PM (TTM) 35.48%
GM 70.38%
FCFM N/A
ROA(3y)4.7%
ROA(5y)4.23%
ROE(3y)10.99%
ROE(5y)9.65%
ROIC(3y)3.52%
ROIC(5y)3.26%
ROICexc(3y)3.57%
ROICexc(5y)3.3%
ROICexgc(3y)3.58%
ROICexgc(5y)3.3%
ROCE(3y)4.45%
ROCE(5y)4.13%
ROICexgc growth 3Y4.14%
ROICexgc growth 5Y6.66%
ROICexc growth 3Y4.14%
ROICexc growth 5Y6.65%
OM growth 3Y0.51%
OM growth 5Y2.03%
PM growth 3Y11.77%
PM growth 5Y-1.38%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
F-Score5
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF N/A
Debt/EBITDA 5.63
Cap/Depr 183.61%
Cap/Sales 59.1%
Interest Coverage 2.37
Cash Conversion 88.99%
Profit Quality N/A
Current Ratio 0.73
Quick Ratio 0.39
Altman-Z 1.38
F-Score5
WACC7.23%
ROIC/WACC0.52
Cap/Depr(3y)142.23%
Cap/Depr(5y)111.67%
Cap/Sales(3y)46.22%
Cap/Sales(5y)36.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.16%
EPS 3Y18.35%
EPS 5Y13%
EPS Q2Q%-1.57%
EPS Next Y-42.24%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
EPS Next 5Y-6.14%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y5.51%
Revenue growth 5Y4.76%
Sales Q2Q%5.59%
Revenue Next Year4.22%
Revenue Next 2Y3.81%
Revenue Next 3Y4.02%
Revenue Next 5Y2.64%
EBIT growth 1Y13.66%
EBIT growth 3Y6.05%
EBIT growth 5Y6.89%
EBIT Next Year109.65%
EBIT Next 3Y31.53%
EBIT Next 5Y22.52%
FCF growth 1Y49.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.57%
OCF growth 3Y3.27%
OCF growth 5Y5.99%

ESSEX PROPERTY TRUST INC / ESS Fundamental Analysis 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 2 / 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 decline by -42.24% 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 97.67%.