PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
NASDAQ:PECO - Nasdaq - US71844V2016 - REIT
Taking everything into account, PECO scores 4 out of 10 in our fundamental rating. PECO was compared to 129 industry peers in the Diversified REITs industry. PECO has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, PECO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PECO was profitable.
PECO had a positive operating cash flow in the past year.
Of the past 5 years PECO 4 years were profitable.
PECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PECO (1.17%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.58%, PECO is in line with its industry, outperforming 58.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.71%, PECO is in line with its industry, outperforming 50.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PECO is in line with the industry average of 3.11%.
The last Return On Invested Capital (2.71%) for PECO is above the 3 year average (2.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 2.58% | ||
| ROIC | 2.71% |
ROA(3y)0.84%
ROA(5y)0.26%
ROE(3y)1.77%
ROE(5y)0.42%
ROIC(3y)2.01%
ROIC(5y)1.85%
1.3 Margins
PECO's Profit Margin of 9.03% is in line compared to the rest of the industry. PECO outperforms 58.73% of its industry peers.
In the last couple of years the Profit Margin of PECO has remained more or less at the same level.
PECO's Operating Margin of 25.69% is in line compared to the rest of the industry. PECO outperforms 57.94% of its industry peers.
PECO's Operating Margin has improved in the last couple of years.
The Gross Margin of PECO (71.22%) is better than 62.70% of its industry peers.
PECO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.69% | ||
| PM (TTM) | 9.03% | ||
| GM | 71.22% |
OM growth 3Y13.08%
OM growth 5Y15.01%
PM growth 3Y113.02%
PM growth 5Y0.51%
GM growth 3Y1.11%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PECO is destroying value.
The number of shares outstanding for PECO has been increased compared to 1 year ago.
Compared to 5 years ago, PECO has more shares outstanding
PECO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that PECO is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.82, PECO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
PECO has a debt to FCF ratio of 8.55. This is a slightly negative value and a sign of low solvency as PECO would need 8.55 years to pay back of all of its debts.
The Debt to FCF ratio of PECO (8.55) is better than 91.27% of its industry peers.
PECO has a Debt/Equity ratio of 0.94. This is a neutral value indicating PECO is somewhat dependend on debt financing.
The Debt to Equity ratio of PECO (0.94) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.37
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.17 indicates that PECO may have some problems paying its short term obligations.
PECO has a Current ratio of 0.17. This is amonst the worse of the industry: PECO underperforms 96.83% of its industry peers.
PECO has a Quick Ratio of 0.17. This is a bad value and indicates that PECO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.17, PECO is not doing good in the industry: 96.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for PECO have decreased by -8.00% in the last year.
The Earnings Per Share has been decreasing by -3.04% on average over the past years.
The Revenue has been growing slightly by 7.01% in the past year.
The Revenue has been growing slightly by 7.23% on average over the past years.
EPS 1Y (TTM)-8%
EPS 3Y118.98%
EPS 5Y-3.04%
EPS Q2Q%-25%
Revenue 1Y (TTM)7.01%
Revenue growth 3Y7%
Revenue growth 5Y7.23%
Sales Q2Q%8.56%
3.2 Future
Based on estimates for the next years, PECO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
The Revenue is expected to grow by 6.93% on average over the next years.
EPS Next Y-6.33%
EPS Next 2Y8.74%
EPS Next 3Y11.31%
EPS Next 5YN/A
Revenue Next Year7.86%
Revenue Next 2Y7.67%
Revenue Next 3Y6.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 79.15, which means the current valuation is very expensive for PECO.
PECO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. PECO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 62.85, the valuation of PECO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PECO is on the same level as its industry peers.
PECO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.15 | ||
| Fwd PE | 62.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PECO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PECO is valued a bit cheaper than 75.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 15.65 |
4.3 Compensation for Growth
PECO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.74%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, PECO has a reasonable but not impressive dividend return.
PECO's Dividend Yield is slightly below the industry average, which is at 18.51.
Compared to an average S&P500 Dividend Yield of 2.28, PECO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of PECO has a limited annual growth rate of 1.75%.
PECO has been paying a dividend for over 5 years, so it has already some track record.
PECO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.75%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PECO pays out 248.01% of its income as dividend. This is not a sustainable payout ratio.
PECO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP248.01%
EPS Next 2Y8.74%
EPS Next 3Y11.31%
PHILLIPS EDISON & COMPANY IN
NASDAQ:PECO (1/21/2025, 8:19:59 PM)
After market: 35.896 -0.51 (-1.41%)36.41
+0.62 (+1.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.78%
Inst Owner Change-0.18%
Ins Owners0.53%
Ins Owner Change-0.1%
Market Cap4.46B
Analysts76.47
Price Target41.51 (14.01%)
Short Float %1.56%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend1.14
Dividend Growth(5Y)1.75%
DP248.01%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.53%
Min EPS beat(2)-36.21%
Max EPS beat(2)-12.85%
EPS beat(4)2
Avg EPS beat(4)-10.23%
Min EPS beat(4)-36.21%
Max EPS beat(4)4.84%
EPS beat(8)6
Avg EPS beat(8)6.49%
EPS beat(12)9
Avg EPS beat(12)-80.81%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.27%
Max Revenue beat(2)-0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)0.22%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)8
Avg Revenue beat(12)1.05%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.5%
PT rev (3m)6.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.15 | ||
| Fwd PE | 62.85 | ||
| P/S | 6.94 | ||
| P/FCF | 18.14 | ||
| P/OCF | 13.83 | ||
| P/B | 1.98 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 15.65 |
EPS(TTM)0.46
EY1.26%
EPS(NY)0.58
Fwd EY1.59%
FCF(TTM)2.01
FCFY5.51%
OCF(TTM)2.63
OCFY7.23%
SpS5.24
BVpS18.35
TBVpS18.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 2.58% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.71% | ||
| ROICexgc | 2.75% | ||
| OM | 25.69% | ||
| PM (TTM) | 9.03% | ||
| GM | 71.22% | ||
| FCFM | 38.28% |
ROA(3y)0.84%
ROA(5y)0.26%
ROE(3y)1.77%
ROE(5y)0.42%
ROIC(3y)2.01%
ROIC(5y)1.85%
ROICexc(3y)2.02%
ROICexc(5y)1.86%
ROICexgc(3y)2.06%
ROICexgc(5y)1.91%
ROCE(3y)2.55%
ROCE(5y)2.34%
ROICexcg growth 3Y17.13%
ROICexcg growth 5Y24.11%
ROICexc growth 3Y17.98%
ROICexc growth 5Y24.75%
OM growth 3Y13.08%
OM growth 5Y15.01%
PM growth 3Y113.02%
PM growth 5Y0.51%
GM growth 3Y1.11%
GM growth 5Y0.6%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 8.55 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 30.74% | ||
| Cap/Sales | 11.92% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 77.86% | ||
| Profit Quality | 423.66% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.82 |
F-Score5
WACC7.4%
ROIC/WACC0.37
Cap/Depr(3y)39.46%
Cap/Depr(5y)37.19%
Cap/Sales(3y)15.95%
Cap/Sales(5y)15.59%
Profit Quality(3y)658.19%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y118.98%
EPS 5Y-3.04%
EPS Q2Q%-25%
EPS Next Y-6.33%
EPS Next 2Y8.74%
EPS Next 3Y11.31%
EPS Next 5YN/A
Revenue 1Y (TTM)7.01%
Revenue growth 3Y7%
Revenue growth 5Y7.23%
Sales Q2Q%8.56%
Revenue Next Year7.86%
Revenue Next 2Y7.67%
Revenue Next 3Y6.93%
Revenue Next 5YN/A
EBIT growth 1Y11%
EBIT growth 3Y21%
EBIT growth 5Y23.33%
EBIT Next Year170.3%
EBIT Next 3Y47.5%
EBIT Next 5YN/A
FCF growth 1Y27.22%
FCF growth 3Y10.11%
FCF growth 5YN/A
OCF growth 1Y9.98%
OCF growth 3Y11.38%
OCF growth 5Y13.67%