35.19 USD
-0.23 (-0.65%)
35.19 USD
0 (0%)
Overall PECO gets a fundamental rating of 4 out of 10. We evaluated PECO against 124 industry peers in the Diversified REITs industry. PECO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- Each year in the past 5 years PECO has been profitable.
- PECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PECO has a Return On Assets of 1.56%. This is comparable to the rest of the industry: PECO outperforms 56.45% of its industry peers.
- PECO has a Return On Equity (3.60%) which is in line with its industry peers.
- PECO has a Return On Invested Capital of 2.98%. This is comparable to the rest of the industry: PECO outperforms 58.87% of its industry peers.
- 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's Profit Margin of 11.51% is in line compared to the rest of the industry. PECO outperforms 58.06% of its industry peers.
- In the last couple of years the Profit Margin of PECO has grown nicely.
- PECO has a Operating Margin of 27.10%. This is comparable to the rest of the industry: PECO outperforms 59.68% of its industry peers.
- PECO's Operating Margin has improved in the last couple of years.
- The Gross Margin of PECO (71.20%) is better than 63.71% 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
- PECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for PECO has been increased compared to 1 year ago.
- PECO has more shares outstanding than it did 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.
- The Altman-Z score of PECO (0.75) is better 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.
- A Debt/Equity ratio of 1.05 is on the high side and indicates that PECO has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.05, PECO is in line with its industry, outperforming 59.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.43
WACC7%
2.3 Liquidity
- A Current Ratio of 0.19 indicates that PECO may have some problems paying 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
- The Earnings Per Share has grown by an impressive 43.48% over the past year.
- 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.
- 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
- 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.
- Based on estimates for the next years, PECO will show a small growth in Revenue. The Revenue will grow by 6.58% on average per year.
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.
- 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
- PECO is valuated quite expensively with a Price/Earnings ratio of 53.32.
- The rest of the industry has a similar Price/Earnings ratio as PECO.
- The average S&P500 Price/Earnings ratio is at 28.82. PECO is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 50.63 indicates a quite expensive valuation of PECO.
- 62.10% 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 25.95. PECO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.32 | ||
| Fwd PE | 50.63 |
4.2 Price Multiples
- PECO's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 22.03 | ||
| EV/EBITDA | 14.92 |
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 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y17.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
- PECO has a Yearly Dividend Yield of 3.67%.
- Compared to an average industry Dividend Yield of 6.82, PECO is paying slightly less dividend.
- 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
- 189.57% of the earnings are spent on dividend by PECO. 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.