PIEDMONT OFFICE REALTY TRU-A (PDM) Stock Fundamental Analysis
NYSE:PDM - New York Stock Exchange, Inc. - US7201902068 - REIT - Currency: USD
Overall PDM gets a fundamental rating of 3 out of 10. We evaluated PDM against 129 industry peers in the Diversified REITs industry. PDM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PDM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
PDM had negative earnings in the past year.
PDM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PDM reported negative net income in multiple years.
PDM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of PDM (-1.86%) is worse than 76.19% of its industry peers.
PDM's Return On Equity of -4.74% is on the low side compared to the rest of the industry. PDM is outperformed by 72.22% of its industry peers.
PDM has a worse Return On Invested Capital (1.50%) than 79.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDM is in line with the industry average of 3.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.86% | ||
| ROE | -4.74% | ||
| ROIC | 1.5% |
ROA(3y)0.16%
ROA(5y)1.33%
ROE(3y)0.05%
ROE(5y)2.47%
ROIC(3y)1.58%
ROIC(5y)1.67%
1.3 Margins
The Operating Margin of PDM (13.21%) is worse than 71.43% of its industry peers.
PDM's Operating Margin has declined in the last couple of years.
The Gross Margin of PDM (59.02%) is worse than 71.43% of its industry peers.
In the last couple of years the Gross Margin of PDM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.21% | ||
| PM (TTM) | N/A | ||
| GM | 59.02% |
OM growth 3Y-5.25%
OM growth 5Y-7.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PDM is destroying value.
PDM has more shares outstanding than it did 1 year ago.
PDM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PDM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.23, we must say that PDM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.23, PDM is doing worse than 84.13% of the companies in the same industry.
A Debt/Equity ratio of 1.36 is on the high side and indicates that PDM has dependencies on debt financing.
PDM has a Debt to Equity ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.23 |
ROIC/WACC0.22
WACC6.79%
2.3 Liquidity
PDM has a Current Ratio of 2.37. This indicates that PDM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.37, PDM is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 2.37 indicates that PDM has no problem at all paying its short term obligations.
The Quick ratio of PDM (2.37) is better than 80.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
PDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.00%, which is quite impressive.
The Revenue has decreased by -1.29% in the past year.
PDM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.36% yearly.
EPS 1Y (TTM)95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%260.87%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y2.56%
Revenue growth 5Y1.36%
Sales Q2Q%-1.45%
3.2 Future
PDM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 112.72% yearly.
Based on estimates for the next years, PDM will show a decrease in Revenue. The Revenue will decrease by -1.66% on average per year.
EPS Next Y-607%
EPS Next 2Y112.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.38%
Revenue Next 2Y-1.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for PDM. In the last year negative earnings were reported.
Also next year PDM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
PDM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PDM is cheaper than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
PDM's earnings are expected to grow with 112.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y112.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.75%, PDM is a good candidate for dividend investing.
In the last 3 months the price of PDM has falen by -24.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
PDM's Dividend Yield is a higher than the industry average which is at 18.48.
PDM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
5.2 History
The dividend of PDM decreases each year by -11.28%.
PDM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.28%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of PDM are negative and hence is the payout ratio. PDM will probably not be able to sustain this dividend level.
DP-80.37%
EPS Next 2Y112.72%
EPS Next 3YN/A
7.07
-0.2 (-2.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.27%
Inst Owner Change-0.08%
Ins Owners0.87%
Ins Owner Change2.64%
Market Cap876.68M
Analysts74.29
Price Target10.71 (51.49%)
Short Float %2.03%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend0.75
Dividend Growth(5Y)-11.28%
DP-80.37%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-68.32%
Min EPS beat(2)-78.22%
Max EPS beat(2)-58.42%
EPS beat(4)0
Avg EPS beat(4)-329.32%
Min EPS beat(4)-1038.61%
Max EPS beat(4)-58.42%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)0.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)0.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.37%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.35%
PT rev (3m)4.76%
EPS NQ rev (1m)25%
EPS NQ rev (3m)25%
EPS NY rev (1m)-5%
EPS NY rev (3m)-5%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.53 | ||
| P/FCF | N/A | ||
| P/OCF | 4.8 | ||
| P/B | 0.54 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)-0.02
EYN/A
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)1.47
OCFY20.84%
SpS4.62
BVpS13.13
TBVpS12.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.86% | ||
| ROE | -4.74% | ||
| ROCE | 1.9% | ||
| ROIC | 1.5% | ||
| ROICexc | 1.55% | ||
| ROICexgc | 1.6% | ||
| OM | 13.21% | ||
| PM (TTM) | N/A | ||
| GM | 59.02% | ||
| FCFM | N/A |
ROA(3y)0.16%
ROA(5y)1.33%
ROE(3y)0.05%
ROE(5y)2.47%
ROIC(3y)1.58%
ROIC(5y)1.67%
ROICexc(3y)1.59%
ROICexc(5y)1.68%
ROICexgc(3y)1.66%
ROICexgc(5y)1.76%
ROCE(3y)1.99%
ROCE(5y)2.12%
ROICexcg growth 3Y-4.03%
ROICexcg growth 5Y-9.51%
ROICexc growth 3Y-3.32%
ROICexc growth 5Y-9.06%
OM growth 3Y-5.25%
OM growth 5Y-7.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.64%
GM growth 5Y-0.47%
F-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.36 | ||
| Cap/Depr | 81.69% | ||
| Cap/Sales | 32.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z | -0.23 |
F-Score3
WACC6.79%
ROIC/WACC0.22
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%260.87%
EPS Next Y-607%
EPS Next 2Y112.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y2.56%
Revenue growth 5Y1.36%
Sales Q2Q%-1.45%
Revenue Next Year-0.38%
Revenue Next 2Y-1.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.95%
EBIT growth 3Y-2.83%
EBIT growth 5Y-6.59%
EBIT Next Year391.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-102.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.74%
OCF growth 3YN/A
OCF growth 5YN/A