PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
USA - NASDAQ:PECO - US71844V2016 - REIT
34.38 USD
-0.41 (-1.18%)
We assign a fundamental rating of 5 out of 10 to PECO. PECO was compared to 128 industry peers in the Diversified REITs industry. PECO scores excellent on profitability, but 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.
Each year in the past 5 years PECO has been profitable.
In the past 5 years PECO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PECO (1.56%) is comparable to the rest of the industry.
PECO has a Return On Equity of 3.60%. This is in the better half of the industry: PECO outperforms 61.72% of its industry peers.
PECO has a Return On Invested Capital of 2.98%. This is comparable to the rest of the industry: PECO outperforms 58.59% of 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 3.04%.
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
PECO has a Profit Margin of 11.51%. This is in the better half of the industry: PECO outperforms 60.94% of its industry peers.
In the last couple of years the Profit Margin of PECO has grown nicely.
The Operating Margin of PECO (27.10%) is comparable to the rest of the industry.
PECO's Operating Margin has improved in the last couple of years.
PECO has a Gross Margin of 71.20%. This is in the better half 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.
PECO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PECO has more shares outstanding
Compared to 1 year ago, PECO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that PECO is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.74, PECO is doing good in the industry, outperforming 65.63% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 11.87, PECO belongs to the best 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.
With a decent Debt to Equity ratio value of 1.05, PECO is doing good in the industry, outperforming 60.16% 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
WACC6.88%
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 has a worse Current ratio (0.19) than 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 93.75% 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.
PECO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.36% yearly.
The Revenue has grown by 10.73% in the past year. This is quite good.
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
Based on estimates for the next years, PECO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.67% on average per year.
Based on estimates for the next years, PECO will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y21.72%
EPS Next 2Y21.61%
EPS Next 3Y19.67%
EPS Next 5YN/A
Revenue Next Year10.19%
Revenue Next 2Y7.42%
Revenue Next 3Y5.77%
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
With a Price/Earnings ratio of 52.09, 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 25.46, PECO is valued quite expensively.
PECO is valuated quite expensively with a Price/Forward Earnings ratio of 46.49.
PECO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, PECO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.09 | ||
| Fwd PE | 46.49 |
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 74.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 14.73 |
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 19.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.4
PEG (5Y)N/A
EPS Next 2Y21.61%
EPS Next 3Y19.67%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 6.49, PECO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, PECO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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 2Y21.61%
EPS Next 3Y19.67%
NASDAQ:PECO (11/19/2025, 2:58:16 PM)
34.38
-0.41 (-1.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.11%
Inst Owner Change-0.7%
Ins Owners0.53%
Ins Owner Change0%
Market Cap4.32B
Revenue(TTM)711.78M
Net Income(TTM)81.92M
Analysts76.84
Price Target40.06 (16.52%)
Short Float %3.11%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)-0.07%
PT rev (3m)0.19%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.09 | ||
| Fwd PE | 46.49 | ||
| P/S | 6.07 | ||
| P/FCF | 21.49 | ||
| P/OCF | 12.85 | ||
| P/B | 1.9 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 14.73 |
EPS(TTM)0.66
EY1.92%
EPS(NY)0.74
Fwd EY2.15%
FCF(TTM)1.6
FCFY4.65%
OCF(TTM)2.68
OCFY7.78%
SpS5.67
BVpS18.14
TBVpS17.85
PEG (NY)2.4
PEG (5Y)N/A
Graham Number16.41
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
WACC6.88%
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 Y21.72%
EPS Next 2Y21.61%
EPS Next 3Y19.67%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
Revenue Next Year10.19%
Revenue Next 2Y7.42%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
EBIT growth 1Y16.78%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year173.11%
EBIT Next 3Y45.4%
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 52.09 and the Price/Book (PB) ratio is 1.9.
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 21.72% in the next year.