34.88 USD
+0.04 (+0.11%)
34.88 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PECO. PECO was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PECO had positive earnings in the past year.
In the past year PECO had a positive cash flow from operations.
In the past 5 years PECO has always been profitable.
Each year in the past 5 years PECO had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 3.60%, PECO is in line with its industry, outperforming 58.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.98%, PECO is in line with its industry, outperforming 58.59% of the companies in the same industry.
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 3 year average ROIC (2.51%) for PECO is below the current ROIC(2.98%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of PECO has grown nicely.
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.
PECO's Gross Margin has been stable in the last couple of years.
| 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
Compared to 5 years ago, PECO has more shares outstanding
The debt/assets ratio for PECO is higher compared to a year ago.
2.2 Solvency
PECO has an Altman-Z score of 0.74. This is a bad value and indicates that PECO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PECO (0.74) is better than 66.41% of its industry peers.
The Debt to FCF ratio of PECO is 11.87, which is on the high side as it means it would take PECO, 11.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.87, PECO belongs to the top of the industry, outperforming 88.28% of the companies in the same industry.
PECO has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.05, PECO is in line with its industry, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.43
WACC6.92%
2.3 Liquidity
PECO has a Current Ratio of 0.19. This is a bad value and indicates that PECO is not financially healthy enough and could expect problems in meeting its short term obligations.
PECO's Current ratio of 0.19 is on the low side compared to the rest of the industry. PECO is outperformed by 92.19% of its industry peers.
A Quick Ratio of 0.14 indicates that PECO may have some problems paying its short term obligations.
The Quick ratio of PECO (0.14) is worse than 94.53% 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.
The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
PECO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.73%.
PECO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
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 15.10% 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 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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 52.85, the valuation of PECO can be described as expensive.
PECO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.49, PECO is valued quite expensively.
A Price/Forward Earnings ratio of 52.77 indicates a quite expensive valuation of PECO.
PECO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, PECO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.85 | ||
| Fwd PE | 52.77 |
4.2 Price Multiples
PECO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PECO indicates a somewhat cheap valuation: PECO is cheaper than 73.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PECO 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)2.64
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, PECO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, PECO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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%
34.88
+0.04 (+0.11%)
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 Cap4.39B
Revenue(TTM)711.78M
Net Income(TTM)81.92M
Analysts76.84
Price Target40.24 (15.37%)
Short Float %2.47%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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)0.91%
EPS NQ rev (1m)-3.41%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.85 | ||
| Fwd PE | 52.77 | ||
| P/S | 6.16 | ||
| P/FCF | 21.84 | ||
| P/OCF | 13.06 | ||
| P/B | 1.93 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)0.66
EY1.89%
EPS(NY)0.66
Fwd EY1.89%
FCF(TTM)1.6
FCFY4.58%
OCF(TTM)2.67
OCFY7.66%
SpS5.66
BVpS18.11
TBVpS17.82
PEG (NY)2.64
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 | 0.74 |
F-Score6
WACC6.92%
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 5 / 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 7 / 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 52.85 and the Price/Book (PB) ratio is 1.93.
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.