We assign a fundamental rating of 2 out of 10 to PKST. PKST was compared to 124 industry peers in the Diversified REITs industry. The financial health of PKST is average, but there are quite some concerns on its profitability. PKST does not seem to be growing, but still is valued expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year PKST has reported negative net income.
PKST had a positive operating cash flow in the past year.
In the past 5 years PKST reported 4 times negative net income.
Each year in the past 5 years PKST had a positive operating cash flow.

1.2 Ratios

PKST has a worse Return On Assets (-15.03%) than 95.16% of its industry peers.
With a Return On Equity value of -40.27%, PKST is not doing good in the industry: 90.32% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.67%, PKST is doing worse than 72.58% of the companies in the same industry.
PKST had an Average Return On Invested Capital over the past 3 years of 1.66%. This is in line with the industry average of 3.05%.
The last Return On Invested Capital (1.67%) for PKST is above the 3 year average (1.66%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-15.03%
ROE	-40.27%
ROIC	1.67%

ROA(3y)-10.58%

ROA(5y)-6.4%

ROE(3y)-24.62%

ROE(5y)-14.93%

ROIC(3y)1.66%

ROIC(5y)1.69%

1.3 Margins

Looking at the Operating Margin, with a value of 21.09%, PKST is in line with its industry, outperforming 50.00% of the companies in the same industry.
PKST's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 91.11%, PKST belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Gross Margin of PKST has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	21.09%
PM (TTM)	N/A
GM	91.11%

OM growth 3Y1.21%

OM growth 5Y-4.22%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.19%

GM growth 5Y0.98%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PKST 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 PKST has been increased compared to 1 year ago.
Compared to 5 years ago, PKST has more shares outstanding
The debt/assets ratio for PKST has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of -0.99, we must say that PKST is in the distress zone and has some risk of bankruptcy.
PKST's Altman-Z score of -0.99 is on the low side compared to the rest of the industry. PKST is outperformed by 90.32% of its industry peers.
PKST has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.40, PKST is in line with its industry, outperforming 47.58% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.4
Debt/FCF	N/A
Altman-Z	-0.99

ROIC/WACC0.27

WACC6.1%

2.3 Liquidity

A Current Ratio of 8.78 indicates that PKST has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.78, PKST belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
PKST has a Quick Ratio of 8.78. This indicates that PKST is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 8.78, PKST belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	8.78
Quick Ratio	8.78

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

PKST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -583.19%.
The Revenue for PKST has decreased by -16.50% in the past year. This is quite bad
Measured over the past years, PKST shows a very negative growth in Revenue. The Revenue has been decreasing by -10.04% on average per year.

EPS 1Y (TTM)-583.19%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%113.43%

Revenue 1Y (TTM)-16.5%

Revenue growth 3Y-20.85%

Revenue growth 5Y-10.04%

Sales Q2Q%-53.06%

3.2 Future

PKST is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.58% yearly.
PKST is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.39% yearly.

EPS Next Y-2727.86%

EPS Next 2Y80.4%

EPS Next 3Y68.02%

EPS Next 5Y-10.58%

Revenue Next Year-20.3%

Revenue Next 2Y-18.7%

Revenue Next 3Y-8.62%

Revenue Next 5Y-8.39%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for PKST. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 41.09 indicates a quite expensive valuation of PKST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PKST indicates a somewhat cheap valuation: PKST is cheaper than 64.52% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.83. PKST is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	41.09

4.2 Price Multiples

75.00% of the companies in the same industry are more expensive than PKST, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	11.8

4.3 Compensation for Growth

PKST's earnings are expected to grow with 68.02% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y80.4%

EPS Next 3Y68.02%

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5. Dividend

5.1 Amount

PKST has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.82, PKST's dividend is way lower than its industry peers. On top of this 81.45% of the companies listed in the same industry pay a better dividend than PKST!
PKST's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	2.82%

5.2 History

PKST has been paying a dividend for less than 5 years, so it still needs to build a track record.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

PKST has negative earnings and hence a negative payout ratio. The dividend may be in danger.

DP-11.2%

EPS Next 2Y80.4%

EPS Next 3Y68.02%

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PEAKSTONE REALTY TRUST / PKST FAQ

What is the fundamental rating for PKST stock?

ChartMill assigns a fundamental rating of 2 / 10 to PKST.

What is the valuation status for PKST stock?

ChartMill assigns a valuation rating of 2 / 10 to PEAKSTONE REALTY TRUST (PKST). This can be considered as Overvalued.

Can you provide the profitability details for PEAKSTONE REALTY TRUST?

PEAKSTONE REALTY TRUST (PKST) has a profitability rating of 3 / 10.

What is the expected EPS growth for PEAKSTONE REALTY TRUST (PKST) stock?

The Earnings per Share (EPS) of PEAKSTONE REALTY TRUST (PKST) is expected to decline by -2727.86% in the next year.

Is the dividend of PEAKSTONE REALTY TRUST sustainable?

The dividend rating of PEAKSTONE REALTY TRUST (PKST) is 2 / 10 and the dividend payout ratio is -11.2%.