ESSEX PROPERTY TRUST INC (ESS) Fundamental Analysis & Valuation
NYSE:ESS • US2971781057
Current stock price
250.07 USD
+0.04 (+0.02%)
At close:
250.07 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.
1. ESS Profitability Analysis
1.1 Basic Checks
- ESS had positive earnings in the past year.
- ESS had a positive operating cash flow in the past year.
- Each year in the past 5 years ESS has been profitable.
- Each year in the past 5 years ESS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.09%, ESS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- 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.
- Looking at the Return On Invested Capital, with a value of 3.73%, ESS belongs to the top 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 3.52%. This 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 Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 35.48%, ESS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- ESS's Profit Margin has been stable in the last couple of years.
- ESS's Operating Margin of 31.78% is amongst the best of the industry. ESS outperforms 95.00% of its industry peers.
- In the last couple of years the Operating Margin of ESS has grown nicely.
- Looking at the Gross Margin, with a value of 70.38%, 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 | 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%
2. ESS Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESS 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.
2.2 Solvency
- ESS has an Altman-Z score of 1.43. 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 (1.43) is better than 80.00% of its industry peers.
- ESS has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.23, ESS perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.52
WACC7.2%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that ESS may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.73, ESS is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- A Quick Ratio of 0.39 indicates that ESS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.39, ESS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.39 |
3. ESS Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 18.16% over the past year.
- The Earnings Per Share has been growing by 13.00% on average over the past years. This is quite good.
- ESS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.36%.
- 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
- ESS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.14% yearly.
- The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y-42.24%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
EPS Next 5Y-6.14%
Revenue Next Year4.12%
Revenue Next 2Y3.71%
Revenue Next 3Y3.98%
Revenue Next 5Y2.64%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ESS Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.02 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.
- The average S&P500 Price/Earnings ratio is at 26.78. ESS is around the same levels.
- ESS is valuated quite expensively with a Price/Forward Earnings ratio of 41.59.
- Based on the Price/Forward Earnings ratio, ESS is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, ESS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 41.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESS is valued a bit more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.91 |
4.3 Compensation for Growth
- 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 -12.27% in the coming years.
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
5. ESS Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.32%, ESS is a good candidate for dividend investing.
- With a Dividend Yield of 4.32, ESS pays less dividend than the industry average, which is at 46.12. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
5.3 Sustainability
- ESS pays out 97.67% 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.
DP97.67%
EPS Next 2Y-21.17%
EPS Next 3Y-12.27%
ESS Fundamentals: All Metrics, Ratios and Statistics
250.07
+0.04 (+0.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners102.46%
Inst Owner Change0%
Ins Owners1.15%
Ins Owner Change3.42%
Market Cap16.12B
Revenue(TTM)1.89B
Net Income(TTM)669.67M
Analysts64.52
Price Target284.12 (13.62%)
Short Float %2.88%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend10.16
Dividend Growth(5Y)4.42%
DP97.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-31 2026-03-31 (2.59)
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)-1.68%
EPS NQ rev (3m)-5.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 41.59 | ||
| P/S | 8.54 | ||
| P/FCF | N/A | ||
| P/OCF | 15.01 | ||
| P/B | 2.91 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 18.91 |
EPS(TTM)10.41
EY4.16%
EPS(NY)6.01
Fwd EY2.4%
FCF(TTM)-0.64
FCFYN/A
OCF(TTM)16.66
OCFY6.66%
SpS29.27
BVpS85.94
TBVpS85.94
PEG (NY)N/A
PEG (5Y)1.85
Graham Number141.88
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.43 |
F-Score5
WACC7.2%
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 Year4.12%
Revenue Next 2Y3.71%
Revenue Next 3Y3.98%
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.
What is the profitability of ESS stock?
ESSEX PROPERTY TRUST INC (ESS) has a profitability rating of 8 / 10.
What is the valuation of ESSEX PROPERTY TRUST INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ESSEX PROPERTY TRUST INC (ESS) is 24.02 and the Price/Book (PB) ratio is 2.91.
Can you provide the financial health for ESS stock?
The financial health rating of ESSEX PROPERTY TRUST INC (ESS) is 2 / 10.