Essential Properties Realty Trust, Inc.
Essential Properties Realty Trust, Inc. Fundamental Analysis
Essential Properties Realty Trust, Inc. (EPRT) shows moderate financial fundamentals with a PE ratio of 25.92, profit margin of 45.03%, and ROE of 6.45%. The company generates $0.6B in annual revenue with strong year-over-year growth of 25.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.2/100 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 EPRT's fundamental strength across five key dimensions:
Efficiency Score
WeakEPRT struggles to generate sufficient returns from assets.
Valuation Score
WeakEPRT trades at a premium to fair value.
Growth Score
ModerateEPRT shows steady but slowing expansion.
Financial Health Score
ExcellentEPRT maintains a strong and stable balance sheet.
Profitability Score
ModerateEPRT maintains healthy but balanced margins.
Key Financial Metrics
Is EPRT Expensive or Cheap?
P/E Ratio
EPRT trades at 25.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EPRT's PEG of 10.88 indicates potential overvaluation.
Price to Book
The market values Essential Properties Realty Trust, Inc. at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.47 times EBITDA. This is generally considered low.
How Well Does EPRT Make Money?
Net Profit Margin
For every $100 in sales, Essential Properties Realty Trust, Inc. keeps $45.03 as profit after all expenses.
Operating Margin
Core operations generate 64.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.45 in profit for every $100 of shareholder equity.
ROA
Essential Properties Realty Trust, Inc. generates $3.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Essential Properties Realty Trust, Inc. generates strong operating cash flow of $400.10M, reflecting robust business health.
Free Cash Flow
Essential Properties Realty Trust, Inc. generates strong free cash flow of $121.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.58 in free cash annually.
FCF Yield
EPRT converts 1.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How EPRT Stacks Against Its Sector Peers
| Metric | EPRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.92 | 24.23 | Neutral |
| ROE | 6.45% | 659.00% | Weak |
| Net Margin | 45.03% | 4497.00% | Weak |
| Debt/Equity | 0.61 | -22.14 (disorted) | Distorted |
| Current Ratio | 6.13 | 13.87 | Strong Liquidity |
| ROA | 3.69% | -1390.00% (disorted) | Weak |
EPRT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Essential Properties Realty Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.96%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
78.88%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
28.43%
Industry Style: Income, Inflation Hedge, REIT
High Growth