PEAKSTONE REALTY TRUST (PKST) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKST - US39818P7996 - REIT
14.28 USD
+0.11 (+0.78%)
14.28 USD
0 (0%)
Taking everything into account, PKST scores 2 out of 10 in our fundamental rating. PKST was compared to 125 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.
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.
- In the past 5 years PKST always reported a positive cash flow from operatings.
1.2 Ratios
- PKST has a worse Return On Assets (-15.03%) than 95.20% of its industry peers.
- The Return On Equity of PKST (-40.27%) is worse than 90.40% of its industry peers.
- The Return On Invested Capital of PKST (1.67%) is worse than 73.60% of its industry peers.
- 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 3.07%.
- The 3 year average ROIC (1.66%) for PKST is below the current ROIC(1.67%), indicating increased profibility in the last year.
| 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
- PKST has a Operating Margin (21.09%) which is in line with its industry peers.
- PKST's Operating Margin has declined in the last couple of years.
- The Gross Margin of PKST (91.11%) is better than 93.60% of its industry peers.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PKST is destroying value.
- PKST has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PKST has more shares outstanding
- PKST has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -1.01, we must say that PKST is in the distress zone and has some risk of bankruptcy.
- PKST's Altman-Z score of -1.01 is on the low side compared to the rest of the industry. PKST is outperformed by 90.40% 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.
- PKST has a Debt to Equity ratio of 1.40. This is comparable to the rest of the industry: PKST outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.01 |
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.
- With an excellent Current ratio value of 8.78, PKST belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
- A Quick Ratio of 8.78 indicates that PKST has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 8.78, PKST belongs to the top of the industry, outperforming 98.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.78 | ||
| Quick Ratio | 8.78 |
3. Growth
3.1 Past
- The earnings per share for PKST have decreased strongly by -583.19% in the last year.
- PKST shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.50%.
- PKST shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.04% yearly.
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.
- The Revenue is expected to decrease by -8.39% on average over the next years.
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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- PKST reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 39.25, PKST can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, PKST is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. PKST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 39.25 |
4.2 Price Multiples
- 77.60% 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 | 11.54 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as PKST's earnings are expected to grow with 68.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y80.4%
EPS Next 3Y68.02%
5. Dividend
5.1 Amount
- PKST has a Yearly Dividend Yield of 2.86%.
- With a Dividend Yield of 2.86, PKST pays less dividend than the industry average, which is at 6.59. 82.40% 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 | 2.86% |
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
- The earnings of PKST are negative and hence is the payout ratio. PKST will probably not be able to sustain this dividend level.
DP-11.2%
EPS Next 2Y80.4%
EPS Next 3Y68.02%
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%.