35.73 USD
-0.05 (-0.14%)
35.73 USD
0 (0%)
Overall PECO gets a fundamental rating of 4 out of 10. We evaluated PECO against 128 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. PECO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PECO was profitable.
PECO had a positive operating cash flow in the past year.
PECO had positive earnings in each of the past 5 years.
In the past 5 years PECO always reported a positive cash flow from operatings.
1.2 Ratios
PECO has a Return On Assets of 1.56%. This is comparable to the rest of the industry: PECO outperforms 55.47% of its industry peers.
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 in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 11.51%, PECO is in line with its industry, outperforming 57.81% of the companies in the same industry.
PECO's Profit Margin has improved in the last couple of years.
PECO has a Operating Margin of 27.10%. This is comparable to the rest of the industry: PECO outperforms 59.38% of its industry peers.
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 64.06% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PECO is destroying value.
Compared to 1 year ago, PECO has more shares outstanding
PECO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PECO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that PECO is in the distress zone and has some risk of bankruptcy.
PECO's Altman-Z score of 0.76 is fine compared to the rest of the industry. PECO outperforms 66.41% of its industry peers.
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 88.28% 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.
PECO has a Debt to Equity ratio of 1.05. This is comparable to the rest of the industry: PECO outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.43
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.19 indicates that PECO may have some problems paying its short term obligations.
PECO has a Current ratio of 0.19. This is amonst the worse of the industry: PECO underperforms 92.19% of its industry peers.
A Quick Ratio of 0.14 indicates that PECO may have some problems paying its short term obligations.
PECO has a Quick ratio of 0.14. This is amonst the worse of the industry: PECO underperforms 94.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
PECO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.48%, which is quite impressive.
The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, PECO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.10% on average per year.
PECO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y20.02%
EPS Next 2Y14.97%
EPS Next 3Y15.1%
EPS Next 5YN/A
Revenue Next Year10.68%
Revenue Next 2Y7.87%
Revenue Next 3Y5.89%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 54.14, which means the current valuation is very expensive for PECO.
Compared to the rest of the industry, the Price/Earnings ratio of PECO is on the same level as its industry peers.
PECO is valuated expensively when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
PECO is valuated quite expensively with a Price/Forward Earnings ratio of 54.06.
PECO's Price/Forward Earnings ratio is in line with the industry average.
PECO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.14 | ||
| Fwd PE | 54.06 |
4.2 Price Multiples
PECO's Enterprise Value to EBITDA ratio is in line with the industry average.
PECO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PECO is cheaper than 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 15.02 |
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.
PECO has a very decent profitability rating, which may justify a higher PE ratio.
PECO's earnings are expected to grow with 15.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.7
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, PECO has a reasonable but not impressive dividend return.
PECO's Dividend Yield is slightly below the industry average, which is at 6.43.
PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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
189.57% of the earnings are spent on dividend by PECO. This is not a sustainable payout ratio.
DP189.57%
EPS Next 2Y14.97%
EPS Next 3Y15.1%
35.73
-0.05 (-0.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners87.68%
Inst Owner Change-1.79%
Ins Owners0.53%
Ins Owner Change0%
Market Cap4.49B
Revenue(TTM)711.78M
Net Income(TTM)81.92M
Analysts76.84
Price Target40.43 (13.15%)
Short Float %1.77%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.08
Dividend Growth(5Y)-3.54%
DP189.57%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.85%
Min EPS beat(2)-25.54%
Max EPS beat(2)45.24%
EPS beat(4)3
Avg EPS beat(4)20.23%
Min EPS beat(4)-25.54%
Max EPS beat(4)45.24%
EPS beat(8)5
Avg EPS beat(8)5%
EPS beat(12)9
Avg EPS beat(12)11.07%
EPS beat(16)12
Avg EPS beat(16)-55.55%
Revenue beat(2)2
Avg Revenue beat(2)0.73%
Min Revenue beat(2)0.29%
Max Revenue beat(2)1.17%
Revenue beat(4)4
Avg Revenue beat(4)1.25%
Min Revenue beat(4)0.29%
Max Revenue beat(4)2.6%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)8
Avg Revenue beat(12)0.55%
Revenue beat(16)12
Avg Revenue beat(16)1.1%
PT rev (1m)0.46%
PT rev (3m)0.39%
EPS NQ rev (1m)-7.6%
EPS NQ rev (3m)-5.55%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.14 | ||
| Fwd PE | 54.06 | ||
| P/S | 6.31 | ||
| P/FCF | 22.37 | ||
| P/OCF | 13.37 | ||
| P/B | 1.97 | ||
| P/tB | 2 | ||
| EV/EBITDA | 15.02 |
EPS(TTM)0.66
EY1.85%
EPS(NY)0.66
Fwd EY1.85%
FCF(TTM)1.6
FCFY4.47%
OCF(TTM)2.67
OCFY7.48%
SpS5.66
BVpS18.11
TBVpS17.82
PEG (NY)2.7
PEG (5Y)N/A
Graham Number16.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 3.6% | ||
| ROCE | 3.78% | ||
| ROIC | 2.98% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.03% | ||
| OM | 27.1% | ||
| PM (TTM) | 11.51% | ||
| GM | 71.2% | ||
| FCFM | 28.23% |
ROA(3y)1.14%
ROA(5y)0.77%
ROE(3y)2.44%
ROE(5y)1.66%
ROIC(3y)2.51%
ROIC(5y)2.07%
ROICexc(3y)2.52%
ROICexc(5y)2.08%
ROICexgc(3y)2.56%
ROICexgc(5y)2.12%
ROCE(3y)3.18%
ROCE(5y)2.62%
ROICexgc growth 3Y28.89%
ROICexgc growth 5Y10.24%
ROICexc growth 3Y28.89%
ROICexc growth 5Y10.67%
OM growth 3Y23.39%
OM growth 5Y7%
PM growth 3Y49.54%
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y0.35%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Debt/EBITDA | 5.21 | ||
| Cap/Depr | 50.92% | ||
| Cap/Sales | 18.99% | ||
| Interest Coverage | 1.95 | ||
| Cash Conversion | 73.34% | ||
| Profit Quality | 245.29% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.76 |
F-Score6
WACC6.95%
ROIC/WACC0.43
Cap/Depr(3y)40.7%
Cap/Depr(5y)36.89%
Cap/Sales(3y)16.05%
Cap/Sales(5y)15.02%
Profit Quality(3y)370.81%
Profit Quality(5y)1082.19%
High Growth Momentum
Growth
EPS 1Y (TTM)43.48%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%122.22%
EPS Next Y20.02%
EPS Next 2Y14.97%
EPS Next 3Y15.1%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
Revenue Next Year10.68%
Revenue Next 2Y7.87%
Revenue Next 3Y5.89%
Revenue Next 5YN/A
EBIT growth 1Y16.78%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year174.95%
EBIT Next 3Y45.26%
EBIT Next 5YN/A
FCF growth 1Y13.78%
FCF growth 3Y8.44%
FCF growth 5Y12.26%
OCF growth 1Y19.56%
OCF growth 3Y8.38%
OCF growth 5Y8.09%
PHILLIPS EDISON & COMPANY IN / PECO FAQ
What is the fundamental rating for PECO stock?
ChartMill assigns a fundamental rating of 4 / 10 to PECO.
What is the valuation status of PHILLIPS EDISON & COMPANY IN (PECO) stock?
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 valuation of PHILLIPS EDISON & COMPANY IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PHILLIPS EDISON & COMPANY IN (PECO) is 54.14 and the Price/Book (PB) ratio is 1.97.
What is the earnings growth outlook for PHILLIPS EDISON & COMPANY IN?
The Earnings per Share (EPS) of PHILLIPS EDISON & COMPANY IN (PECO) is expected to grow by 20.02% in the next year.