35.42 USD
-0.19 (-0.53%)
35.42 USD
0 (0%)
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. While PECO is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year PECO had a positive cash flow from operations.
- In the past 5 years PECO has always been profitable.
- In the past 5 years PECO always reported a positive cash flow from operatings.
1.2 Ratios
- PECO has a Return On Assets (1.56%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 3.60%, PECO is in line with its industry, outperforming 59.68% of the companies in the same industry.
- With a Return On Invested Capital value of 2.98%, PECO perfoms like the industry average, outperforming 58.87% of the companies in the same 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 (2.98%) for PECO is above the 3 year average (2.51%), which is a sign of increasing profitability.
| 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
- With a Profit Margin value of 11.51%, PECO perfoms like the industry average, outperforming 58.06% of the companies in the same 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.
- In the last couple of years the Operating Margin of PECO has grown nicely.
- Looking at the Gross Margin, with a value of 71.20%, PECO is in the better half of the industry, outperforming 63.71% of the companies in the same industry.
- 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
- PECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for PECO is higher compared to a year ago.
2.2 Solvency
- PECO has an Altman-Z score of 0.75. 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 0.75 is fine compared to the rest of the industry. PECO outperforms 65.32% of its industry peers.
- PECO has a debt to FCF ratio of 11.87. This is a negative value and a sign of low solvency as PECO would need 11.87 years to pay back of 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.
- PECO's Debt to Equity ratio of 1.05 is in line compared to the rest of the industry. PECO outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.43
WACC6.99%
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.
- The Current ratio of PECO (0.19) is worse than 91.13% of its industry peers.
- A Quick Ratio of 0.14 indicates that PECO may have some problems paying its short term obligations.
- PECO's Quick ratio of 0.14 is on the low side compared to the rest of the industry. PECO is outperformed by 93.55% 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.
- 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 16.83% yearly.
- PECO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.58% yearly.
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
- With a Price/Earnings ratio of 53.67, PECO can be considered very expensive at the moment.
- PECO's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of PECO to the average of the S&P500 Index (28.82), we can say PECO is valued expensively.
- PECO is valuated quite expensively with a Price/Forward Earnings ratio of 50.96.
- 62.10% of the companies in the same industry are more expensive than PECO, based on the Price/Forward Earnings ratio.
- PECO is valuated expensively when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.67 | ||
| Fwd PE | 50.96 |
4.2 Price Multiples
- PECO's Enterprise Value to EBITDA ratio is in line with the industry average.
- PECO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PECO is cheaper than 76.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.17 | ||
| EV/EBITDA | 14.92 |
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)2.43
PEG (5Y)N/A
EPS Next 2Y17.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.67%, PECO has a reasonable but not impressive dividend return.
- PECO's Dividend Yield is slightly below the industry average, which is at 6.82.
- PECO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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.