PIEDMONT OFFICE REALTY TRU-A (PDM) Stock Fundamental Analysis
NYSE:PDM - New York Stock Exchange, Inc. - US7201902068 - REIT
Taking everything into account, PDM scores 3 out of 10 in our fundamental rating. PDM was compared to 130 industry peers in the Diversified REITs industry. While PDM seems to be doing ok healthwise, there are quite some concerns on its profitability. 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 each of the past 5 years.
1.2 Ratios
The Return On Assets of PDM (-1.86%) is worse than 77.17% of its industry peers.
PDM has a Return On Equity of -4.74%. This is in the lower half of the industry: PDM underperforms 74.02% of its industry peers.
PDM's Return On Invested Capital of 1.50% is on the low side compared to the rest of the industry. PDM is outperformed by 77.95% 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 3.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.86% | ||
| ROE | -4.74% | ||
| ROIC | 1.5% |
ROA(3y)0.79%
ROA(5y)3.02%
ROE(3y)1.69%
ROE(5y)5.99%
ROIC(3y)1.64%
ROIC(5y)1.86%
1.3 Margins
PDM's Operating Margin of 13.21% is on the low side compared to the rest of the industry. PDM is outperformed by 70.87% of its industry peers.
In the last couple of years the Operating Margin of PDM has declined.
PDM has a Gross Margin of 59.02%. This is in the lower half of the industry: PDM underperforms 71.65% 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-6.91%
OM growth 5Y-9.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.29%
GM growth 5Y-0.29%
2. Health
2.1 Basic Checks
PDM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PDM has been increased compared to 1 year ago.
PDM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PDM has a worse debt to assets ratio.
2.2 Solvency
PDM has an Altman-Z score of -0.18. This is a bad value and indicates that PDM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.18, PDM is doing worse than 82.68% of the companies in the same industry.
PDM has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
PDM has a Debt to Equity ratio of 1.36. This is comparable to the rest of the industry: PDM outperforms 45.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.18 |
ROIC/WACC0.25
WACC5.98%
2.3 Liquidity
A Current Ratio of 2.37 indicates that PDM has no problem at all paying its short term obligations.
The Current ratio of PDM (2.37) is better than 78.74% of its industry peers.
PDM has a Quick Ratio of 2.37. This indicates that PDM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.37, PDM belongs to the best of the industry, outperforming 80.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
PDM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -240.91%.
PDM shows a decrease in Revenue. In the last year, the revenue decreased by -1.24%.
PDM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.89% yearly.
EPS 1Y (TTM)-240.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35.71%
Revenue 1Y (TTM)-1.24%
Revenue growth 3Y2.6%
Revenue growth 5Y1.89%
Sales Q2Q%-5.23%
3.2 Future
The Earnings Per Share is expected to grow by 28.59% on average over the next years. This is a very strong growth
Based on estimates for the next years, PDM will show a decrease in Revenue. The Revenue will decrease by -0.83% on average per year.
EPS Next Y-1%
EPS Next 2Y32.19%
EPS Next 3Y28.59%
EPS Next 5YN/A
Revenue Next Year-0.85%
Revenue Next 2Y-0.34%
Revenue Next 3Y-0.83%
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for PDM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDM indicates a rather cheap valuation: PDM is cheaper than 81.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.54 |
4.3 Compensation for Growth
PDM's earnings are expected to grow with 28.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.19%
EPS Next 3Y28.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.69%, PDM is a good candidate for dividend investing.
In the last 3 months the price of PDM has falen by -20.33%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 15.16, PDM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, PDM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
5.2 History
The dividend of PDM decreases each year by -11.28%.
PDM has been paying a dividend for at least 10 years, so it has 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 2Y32.19%
EPS Next 3Y28.59%
PIEDMONT OFFICE REALTY TRU-A
NYSE:PDM (1/17/2025, 8:20:29 PM)
After market: 8.82 0 (0%)8.82
+0.04 (+0.46%)
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 Change0.03%
Ins Owners0.87%
Ins Owner Change0.75%
Market Cap1.09B
Analysts80
Price Target11.73 (32.99%)
Short Float %1.8%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
Yearly Dividend0.75
Dividend Growth(5Y)-11.28%
DP-80.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
PT rev (3m)9.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)42.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.91 | ||
| P/FCF | N/A | ||
| P/OCF | 5.99 | ||
| P/B | 0.67 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 10.54 |
EPS(TTM)-0.62
EYN/A
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)1.47
OCFY16.7%
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)0.79%
ROA(5y)3.02%
ROE(3y)1.69%
ROE(5y)5.99%
ROIC(3y)1.64%
ROIC(5y)1.86%
ROICexc(3y)1.65%
ROICexc(5y)1.87%
ROICexgc(3y)1.73%
ROICexgc(5y)1.97%
ROCE(3y)2.08%
ROCE(5y)2.36%
ROICexcg growth 3Y-7.69%
ROICexcg growth 5Y-10.29%
ROICexc growth 3Y-7.13%
ROICexc growth 5Y-9.99%
OM growth 3Y-6.91%
OM growth 5Y-9.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.29%
GM growth 5Y-0.29%
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 | -0.18 |
F-Score3
WACC5.98%
ROIC/WACC0.25
Cap/Depr(3y)142.27%
Cap/Depr(5y)188.05%
Cap/Sales(3y)54.3%
Cap/Sales(5y)68.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-240.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35.71%
EPS Next Y-1%
EPS Next 2Y32.19%
EPS Next 3Y28.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.24%
Revenue growth 3Y2.6%
Revenue growth 5Y1.89%
Sales Q2Q%-5.23%
Revenue Next Year-0.85%
Revenue Next 2Y-0.34%
Revenue Next 3Y-0.83%
Revenue Next 5YN/A
EBIT growth 1Y-6.95%
EBIT growth 3Y-4.5%
EBIT growth 5Y-7.76%
EBIT Next Year292.64%
EBIT Next 3Y58.38%
EBIT Next 5YN/A
FCF growth 1Y99.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.25%
OCF growth 3Y2.82%
OCF growth 5Y0.7%