36.23 USD
+0.25 (+0.69%)
At close: Jan 30, 2026
36.23 USD
0 (0%)
After Hours: 1/30/2026, 8:12:40 PM
Taking everything into account, PECO scores 4 out of 10 in our fundamental rating. PECO was compared to 124 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
- 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
- With a Return On Assets value of 1.56%, PECO perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
- 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 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 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 (11.51%) which is comparable to the rest of the industry.
- PECO's Profit Margin has improved in the last couple of years.
- PECO has a Operating Margin (27.10%) which is in line with its industry peers.
- 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 63.71% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- PECO has an Altman-Z score of 0.77. This is a bad value and indicates that PECO is not financially healthy and even has some risk of bankruptcy.
- PECO has a better Altman-Z score (0.77) than 65.32% 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 88.71% 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.
- The Debt to Equity ratio of PECO (1.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.42
WACC7.05%
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 91.13% of its industry peers.
- PECO has a Quick 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 Quick ratio (0.14) than 93.55% 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.
- Measured over the past years, PECO shows a very strong growth in Earnings Per Share. The EPS has been growing by 55.36% on average per year.
- 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
- Based on estimates for the next years, PECO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.83% on average per year.
- The Revenue is expected to grow by 6.58% on average over the next years.
EPS Next Y22.06%
EPS Next 2Y17.9%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue Next Year10.74%
Revenue Next 2Y7.98%
Revenue Next 3Y6.58%
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
- Based on the Price/Earnings ratio of 54.89, the valuation of PECO can be described as expensive.
- PECO's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, PECO is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 52.13, the valuation of PECO can be described as expensive.
- 61.29% of the companies in the same industry are more expensive than PECO, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. PECO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.89 | ||
| Fwd PE | 52.13 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PECO is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PECO indicates a somewhat cheap valuation: PECO is cheaper than 76.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.68 | ||
| EV/EBITDA | 15.14 |
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 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)N/A
EPS Next 2Y17.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.61%, PECO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.98, PECO is paying slightly less dividend.
- PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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 2Y17.9%
EPS Next 3Y16.83%
PHILLIPS EDISON & COMPANY IN / PECO FAQ
What is the fundamental rating for PECO stock?
ChartMill assigns a fundamental rating of 4 / 10 to PECO.
Can you provide the valuation status for PHILLIPS EDISON & COMPANY IN?
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 financial health of PHILLIPS EDISON & COMPANY IN (PECO) stock?
The financial health rating of PHILLIPS EDISON & COMPANY IN (PECO) is 2 / 10.
Can you provide the expected EPS growth for PECO stock?
The Earnings per Share (EPS) of PHILLIPS EDISON & COMPANY IN (PECO) is expected to grow by 22.06% in the next year.