PHILLIPS EDISON & COMPANY IN (PECO) Stock Fundamental Analysis
USA - NASDAQ:PECO - US71844V2016 - REIT
34.12 USD
+0.08 (+0.24%)
34.12 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PECO. PECO was compared to 127 industry peers in the Diversified REITs industry. There are concerns on the financial health of PECO while its profitability can be described as average. 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.
In the past 5 years PECO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PECO (1.31%) is comparable to the rest of the industry.
PECO has a Return On Equity (3.01%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.76%, PECO perfoms like the industry average, outperforming 51.18% 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 3.07%.
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
With a Profit Margin value of 9.91%, PECO perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
In the last couple of years the Profit Margin of PECO has grown nicely.
The Operating Margin of PECO (25.85%) is comparable to the rest of the industry.
PECO's Operating Margin has improved in the last couple of years.
The Gross Margin of PECO (71.26%) is better than 63.78% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PECO is destroying value.
The number of shares outstanding for PECO has been increased compared to 1 year ago.
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
PECO has an Altman-Z score of 0.71. This is a bad value and indicates that PECO is not financially healthy and even has some risk of bankruptcy.
PECO's Altman-Z score of 0.71 is fine compared to the rest of the industry. PECO outperforms 65.35% 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.
The Debt to FCF ratio of PECO (10.58) is better than 87.40% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that PECO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.04, PECO perfoms like the industry average, outperforming 59.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 10.58 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.4
WACC6.86%
2.3 Liquidity
PECO has a Current Ratio of 0.15. 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 Current ratio of 0.15. This is amonst the worse of the industry: PECO underperforms 94.49% of its industry peers.
PECO has a Quick Ratio of 0.15. 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 Quick ratio of 0.15 is on the low side compared to the rest of the industry. PECO is outperformed by 94.49% 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 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.
Looking at the last year, PECO shows a quite strong growth in Revenue. The Revenue has grown by 10.73% in the last year.
Measured over the past years, PECO shows a small growth in Revenue. The Revenue has been growing by 4.27% on average per year.
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
PECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.50% yearly.
PECO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y15.26%
EPS Next 2Y13.91%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue Next Year9.88%
Revenue Next 2Y7.53%
Revenue Next 3Y6.3%
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 51.70 indicates a quite expensive valuation of PECO.
PECO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.13, PECO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 52.60, the valuation of PECO can be described as expensive.
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 (22.35), we can say PECO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.7 | ||
| Fwd PE | 52.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PECO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PECO indicates a somewhat cheap valuation: PECO is cheaper than 76.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 14.88 |
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.
A more expensive valuation may be justified as PECO's earnings are expected to grow with 12.50% in the coming years.
PEG (NY)3.39
PEG (5Y)N/A
EPS Next 2Y13.91%
EPS Next 3Y12.5%
5. Dividend
5.1 Amount
PECO has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.30, PECO is paying slightly less dividend.
PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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 2Y13.91%
EPS Next 3Y12.5%
34.12
+0.08 (+0.24%)
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-1.18%
Ins Owners0.53%
Ins Owner Change0%
Market Cap4.29B
Revenue(TTM)711.78M
Net Income(TTM)68.84M
Analysts77.78
Price Target40.06 (17.41%)
Short Float %2.83%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)-0.07%
PT rev (3m)-0.32%
EPS NQ rev (1m)-7.53%
EPS NQ rev (3m)-11.95%
EPS NY rev (1m)-7.98%
EPS NY rev (3m)-4.77%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.7 | ||
| Fwd PE | 52.6 | ||
| P/S | 6.17 | ||
| P/FCF | 18.94 | ||
| P/OCF | 12.25 | ||
| P/B | 1.87 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 14.88 |
EPS(TTM)0.66
EY1.93%
EPS(NY)0.65
Fwd EY1.9%
FCF(TTM)1.8
FCFY5.28%
OCF(TTM)2.78
OCFY8.16%
SpS5.53
BVpS18.23
TBVpS17.95
PEG (NY)3.39
PEG (5Y)N/A
Graham Number16.46
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%
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 Turnover0.13
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 | 0.71 |
F-Score6
WACC6.86%
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)43.48%
EPS 3Y55.36%
EPS 5YN/A
EPS Q2Q%122.22%
EPS Next Y15.26%
EPS Next 2Y13.91%
EPS Next 3Y12.5%
EPS Next 5YN/A
Revenue 1Y (TTM)10.73%
Revenue growth 3Y7.47%
Revenue growth 5Y4.27%
Sales Q2Q%10.36%
Revenue Next Year9.88%
Revenue Next 2Y7.53%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
EBIT growth 1Y8.97%
EBIT growth 3Y32.61%
EBIT growth 5Y11.56%
EBIT Next Year173.11%
EBIT Next 3Y45.4%
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%
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 51.7 and the Price/Book (PB) ratio is 1.87.
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 15.26% in the next year.