EastGroup Properties, Inc.
EastGroup Properties, Inc. Fundamental Analysis
EastGroup Properties, Inc. (EGP) shows moderate financial fundamentals with a PE ratio of 36.98, profit margin of 39.70%, and ROE of 8.37%. The company generates $0.7B in annual revenue with strong year-over-year growth of 12.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EGP's fundamental strength across five key dimensions:
Efficiency Score
WeakEGP struggles to generate sufficient returns from assets.
Valuation Score
ModerateEGP shows balanced valuation metrics.
Growth Score
ModerateEGP shows steady but slowing expansion.
Financial Health Score
ExcellentEGP maintains a strong and stable balance sheet.
Profitability Score
ModerateEGP maintains healthy but balanced margins.
Key Financial Metrics
Is EGP Expensive or Cheap?
P/E Ratio
EGP trades at 36.98 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EGP's PEG of 1.84 indicates fair valuation.
Price to Book
The market values EastGroup Properties, Inc. at 3.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.11 times EBITDA. This signals the market has high growth expectations.
How Well Does EGP Make Money?
Net Profit Margin
For every $100 in sales, EastGroup Properties, Inc. keeps $39.70 as profit after all expenses.
Operating Margin
Core operations generate 40.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.37 in profit for every $100 of shareholder equity.
ROA
EastGroup Properties, Inc. generates $5.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EastGroup Properties, Inc. generates strong operating cash flow of $492.16M, reflecting robust business health.
Free Cash Flow
EastGroup Properties, Inc. generates strong free cash flow of $420.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.81 in free cash annually.
FCF Yield
EGP converts 3.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How EGP Stacks Against Its Sector Peers
| Metric | EGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.98 | 22.93 | Worse (Expensive) |
| ROE | 8.37% | 673.00% | Weak |
| Net Margin | 39.70% | 1601500.00% | Weak |
| Debt/Equity | 0.47 | -17.11 (disorted) | Distorted |
| Current Ratio | 1.04 | 22.79 | Neutral |
| ROA | 5.33% | -939.00% (disorted) | Weak |
EGP 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 EastGroup Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.19%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
74.78%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
80.20%
Industry Style: Income, Inflation Hedge, REIT
High Growth