Easterly Government Properties, Inc.
Easterly Government Properties, Inc. Fundamental Analysis
Easterly Government Properties, Inc. (DEA) shows weak financial fundamentals with a PE ratio of 76.96, profit margin of 4.24%, and ROE of 1.04%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 5.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DEA's fundamental strength across five key dimensions:
Efficiency Score
WeakDEA struggles to generate sufficient returns from assets.
Valuation Score
ModerateDEA shows balanced valuation metrics.
Growth Score
ModerateDEA shows steady but slowing expansion.
Financial Health Score
ModerateDEA shows balanced financial health with some risks.
Profitability Score
ModerateDEA maintains healthy but balanced margins.
Key Financial Metrics
Is DEA Expensive or Cheap?
P/E Ratio
DEA trades at 76.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DEA's PEG of -3.42 indicates potential undervaluation.
Price to Book
The market values Easterly Government Properties, Inc. at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.31 times EBITDA. This is generally considered low.
How Well Does DEA Make Money?
Net Profit Margin
For every $100 in sales, Easterly Government Properties, Inc. keeps $4.24 as profit after all expenses.
Operating Margin
Core operations generate 25.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.04 in profit for every $100 of shareholder equity.
ROA
Easterly Government Properties, Inc. generates $0.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Easterly Government Properties, Inc. generates strong operating cash flow of $250.38M, reflecting robust business health.
Free Cash Flow
Easterly Government Properties, Inc. generates strong free cash flow of $250.38M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.43 in free cash annually.
FCF Yield
DEA converts 21.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
76.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How DEA Stacks Against Its Sector Peers
| Metric | DEA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 76.96 | 24.23 | Worse (Expensive) |
| ROE | 1.04% | 659.00% | Weak |
| Net Margin | 4.24% | 4497.00% | Weak |
| Debt/Equity | 0.88 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.05 | 13.87 | Weak Liquidity |
| ROA | 0.41% | -1390.00% (disorted) | Weak |
DEA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Easterly Government Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.09%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
89.02%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-20.38%
Industry Style: Income, Inflation Hedge, REIT
Declining