35.31 USD
-0.13 (-0.37%)
35.31 USD
0 (0%)
Taking everything into account, PECO scores 4 out of 10 in our fundamental rating. PECO was compared to 124 industry peers in the Diversified REITs industry. While PECO is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, PECO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- PECO had positive earnings in the past year.
- PECO had a positive operating cash flow in the past year.
- PECO had positive earnings in each of the past 5 years.
- Each year in the past 5 years PECO had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.56%, PECO is in line with its industry, outperforming 56.00% of the companies in the same industry.
- PECO has a Return On Equity (3.60%) which is in line with its industry peers.
- PECO has a Return On Invested Capital (2.98%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for PECO is in line with the industry average of 3.05%.
- The last Return On Invested Capital (2.98%) for PECO is above the 3 year average (2.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 3.6% | ||
| ROIC | 2.98% |
ROA(3y)1.14%
ROA(5y)0.77%
ROE(3y)2.44%
ROE(5y)1.66%
ROIC(3y)2.51%
ROIC(5y)2.07%
1.3 Margins
- PECO has a Profit Margin (11.51%) which is in line with its industry peers.
- PECO's Profit Margin has improved in the last couple of years.
- PECO has a Operating Margin (27.10%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of PECO has grown nicely.
- PECO's Gross Margin of 71.20% is fine compared to the rest of the industry. PECO outperforms 64.00% of its industry peers.
- In the last couple of years the Gross Margin of PECO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.1% | ||
| PM (TTM) | 11.51% | ||
| GM | 71.2% |
OM growth 3Y23.39%
OM growth 5Y7%
PM growth 3Y49.54%
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
- PECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- PECO has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for PECO has been increased compared to 5 years ago.
- PECO has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.75, we must say that PECO is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 0.75, PECO is doing good in the industry, outperforming 65.60% of the companies in the same industry.
- PECO has a debt to FCF ratio of 11.87. This is a negative value and a sign of low solvency as PECO would need 11.87 years to pay back of all of its debts.
- The Debt to FCF ratio of PECO (11.87) is better than 88.80% of its industry peers.
- PECO has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.05, PECO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.43
WACC7%
2.3 Liquidity
- A Current Ratio of 0.19 indicates that PECO may have some problems paying its short term obligations.
- With a Current ratio value of 0.19, PECO is not doing good in the industry: 91.20% of the companies in the same industry are doing better.
- A Quick Ratio of 0.14 indicates that PECO may have some problems paying its short term obligations.
- PECO's Quick ratio of 0.14 is on the low side compared to the rest of the industry. PECO is outperformed by 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 43.48% over the past year.
- Measured over the past years, PECO shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.36% on average per year.
- Looking at the last year, PECO shows a quite strong growth in Revenue. The Revenue has grown by 10.73% in the last year.
- The Revenue has been growing slightly by 4.27% on average over the past years.
EPS 1Y (TTM)43.48%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%122.22%
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
3.2 Future
- The Earnings Per Share is expected to grow by 16.83% on average over the next years. This is quite good.
- PECO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.58% yearly.
EPS Next Y22.06%
EPS Next 2Y17.9%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue Next Year10.74%
Revenue Next 2Y7.98%
Revenue Next 3Y6.58%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 53.50 indicates a quite expensive valuation of PECO.
- PECO's Price/Earnings ratio is in line with the industry average.
- PECO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- PECO is valuated quite expensively with a Price/Forward Earnings ratio of 50.80.
- 62.40% of the companies in the same industry are more expensive than PECO, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PECO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.5 | ||
| Fwd PE | 50.8 |
4.2 Price Multiples
- PECO's Enterprise Value to EBITDA is on the same level as the industry average.
- PECO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PECO is cheaper than 76.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PECO does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of PECO may justify a higher PE ratio.
- A more expensive valuation may be justified as PECO's earnings are expected to grow with 16.83% in the coming years.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y17.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
- PECO has a Yearly Dividend Yield of 3.67%.
- Compared to an average industry Dividend Yield of 6.82, PECO is paying slightly less dividend.
- PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
- The dividend of PECO decreases each year by -3.54%.
- 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)-3.54%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- PECO pays out 189.57% of its income as dividend. This is not a sustainable payout ratio.
DP189.57%
EPS Next 2Y17.9%
EPS Next 3Y16.83%
PHILLIPS EDISON & COMPANY IN / PECO FAQ
What is the fundamental rating for PECO stock?
ChartMill assigns a fundamental rating of 4 / 10 to PECO.
Can you provide the valuation status for PHILLIPS EDISON & COMPANY IN?
ChartMill assigns a valuation rating of 3 / 10 to PHILLIPS EDISON & COMPANY IN (PECO). This can be considered as Overvalued.
What is the profitability of PECO stock?
PHILLIPS EDISON & COMPANY IN (PECO) has a profitability rating of 6 / 10.
What is the financial health of PHILLIPS EDISON & COMPANY IN (PECO) stock?
The financial health rating of PHILLIPS EDISON & COMPANY IN (PECO) is 2 / 10.
Can you provide the expected EPS growth for PECO stock?
The Earnings per Share (EPS) of PHILLIPS EDISON & COMPANY IN (PECO) is expected to grow by 22.06% in the next year.