PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
USA - NASDAQ:PECO - US71844V2016 - REIT
35.1 USD
-0.39 (-1.1%)
35.101 USD
0 (0%)
PECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. There are concerns on the financial health of PECO while its profitability can be described as average. 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.
Each year in the past 5 years PECO has been profitable.
Each year in the past 5 years PECO had a positive operating cash flow.
1.2 Ratios
PECO's Return On Assets of 1.31% is in line compared to the rest of the industry. PECO outperforms 56.92% of its industry peers.
PECO has a Return On Equity of 3.01%. This is comparable to the rest of the industry: PECO outperforms 55.38% of its industry peers.
PECO has a Return On Invested Capital (2.76%) 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 (2.76%) for PECO is above the 3 year average (2.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 3.01% | ||
| ROIC | 2.76% |
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
The Profit Margin of PECO (9.91%) is comparable to the rest of the industry.
PECO's Profit Margin has improved in the last couple of years.
PECO's Operating Margin of 25.85% is in line compared to the rest of the industry. PECO outperforms 57.69% of its industry peers.
PECO's Operating Margin has improved in the last couple of years.
PECO has a better Gross Margin (71.26%) than 65.38% 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 | 25.85% | ||
| PM (TTM) | 9.91% | ||
| GM | 71.26% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PECO is destroying value.
Compared to 1 year ago, PECO has more shares outstanding
The number of shares outstanding for PECO has been increased compared to 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 0.75, we must say that PECO is in the distress zone and has some risk of bankruptcy.
PECO has a Altman-Z score of 0.75. This is in the better half of the industry: PECO outperforms 65.38% of its industry peers.
PECO has a debt to FCF ratio of 10.58. This is a negative value and a sign of low solvency as PECO would need 10.58 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 10.58, PECO belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
PECO has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
PECO has a Debt to Equity ratio of 1.04. This is comparable to the rest of the industry: PECO outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.4
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
PECO has a worse Current ratio (0.15) than 93.08% of its industry peers.
A Quick Ratio of 0.15 indicates that PECO may have some problems paying its short term obligations.
PECO's Quick ratio of 0.15 is on the low side compared to the rest of the industry. PECO is outperformed by 93.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
PECO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.24%, which is quite good.
The Earnings Per Share has been growing by 55.36% on average over the past years. This is a very strong growth
The Revenue has grown by 10.30% in the past year. This is quite good.
The Revenue has been growing slightly by 4.27% on average over the past years.
EPS 1Y (TTM)12.24%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.05%
3.2 Future
PECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.90% yearly.
The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y24.95%
EPS Next 2Y18.93%
EPS Next 3Y19.9%
EPS Next 5YN/A
Revenue Next Year10.24%
Revenue Next 2Y7.79%
Revenue Next 3Y6.79%
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.
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
With a Price/Earnings ratio of 63.82, PECO can be considered very expensive at the moment.
PECO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PECO is valued quite expensively.
PECO is valuated quite expensively with a Price/Forward Earnings ratio of 49.63.
PECO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PECO to the average of the S&P500 Index (22.86), we can say PECO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.82 | ||
| Fwd PE | 49.63 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PECO.
PECO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PECO is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.49 | ||
| EV/EBITDA | 15.29 |
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.
A more expensive valuation may be justified as PECO's earnings are expected to grow with 19.90% in the coming years.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y18.93%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, PECO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.66, PECO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, PECO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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 238.70% of its income as dividend. This is not a sustainable payout ratio.
DP238.7%
EPS Next 2Y18.93%
EPS Next 3Y19.9%
35.1
-0.39 (-1.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.52%
Inst Owner Change2.43%
Ins Owners0.53%
Ins Owner Change3.86%
Market Cap4.41B
Analysts75.56
Price Target40.09 (14.22%)
Short Float %2.88%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend1.08
Dividend Growth(5Y)-3.54%
DP238.7%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.41%
Min EPS beat(2)-25.54%
Max EPS beat(2)40.37%
EPS beat(4)2
Avg EPS beat(4)-0.13%
Min EPS beat(4)-36.21%
Max EPS beat(4)40.37%
EPS beat(8)5
Avg EPS beat(8)0.46%
EPS beat(12)9
Avg EPS beat(12)7.88%
EPS beat(16)12
Avg EPS beat(16)-42.9%
Revenue beat(2)2
Avg Revenue beat(2)1.45%
Min Revenue beat(2)0.29%
Max Revenue beat(2)2.6%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)2.6%
Revenue beat(8)4
Avg Revenue beat(8)-0.1%
Revenue beat(12)8
Avg Revenue beat(12)0.64%
Revenue beat(16)12
Avg Revenue beat(16)1.75%
PT rev (1m)0.26%
PT rev (3m)-0.92%
EPS NQ rev (1m)-2.95%
EPS NQ rev (3m)8.82%
EPS NY rev (1m)3.23%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.82 | ||
| Fwd PE | 49.63 | ||
| P/S | 6.35 | ||
| P/FCF | 19.49 | ||
| P/OCF | 12.6 | ||
| P/B | 1.93 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 15.29 |
EPS(TTM)0.55
EY1.57%
EPS(NY)0.71
Fwd EY2.01%
FCF(TTM)1.8
FCFY5.13%
OCF(TTM)2.78
OCFY7.93%
SpS5.53
BVpS18.23
TBVpS17.95
PEG (NY)2.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 3.01% | ||
| ROCE | 3.5% | ||
| ROIC | 2.76% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 2.81% | ||
| OM | 25.85% | ||
| PM (TTM) | 9.91% | ||
| GM | 71.26% | ||
| FCFM | 32.57% |
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%
ROICexcg growth 3Y28.89%
ROICexcg 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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 46.09% | ||
| Cap/Sales | 17.79% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 78.14% | ||
| Profit Quality | 328.62% | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.75 |
F-Score6
WACC6.92%
ROIC/WACC0.4
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)12.24%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y24.95%
EPS Next 2Y18.93%
EPS Next 3Y19.9%
EPS Next 5YN/A
Revenue 1Y (TTM)10.3%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.05%
Revenue Next Year10.24%
Revenue Next 2Y7.79%
Revenue Next 3Y6.79%
Revenue Next 5YN/A
EBIT growth 1Y8.97%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year172.64%
EBIT Next 3Y45.39%
EBIT Next 5YN/A
FCF growth 1Y33.38%
FCF growth 3Y8.44%
FCF growth 5Y12.26%
OCF growth 1Y25.46%
OCF growth 3Y8.38%
OCF growth 5Y8.09%