Essex Property Trust, Inc.
Essex Property Trust, Inc. Fundamental Analysis
Essex Property Trust, Inc. (ESS) shows moderate financial fundamentals with a PE ratio of 24.51, profit margin of 35.38%, and ROE of 12.02%. The company generates $1.9B in annual revenue with moderate year-over-year growth of 6.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.9/100 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 ESS's fundamental strength across five key dimensions:
Efficiency Score
WeakESS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentESS trades at attractive valuation levels.
Growth Score
ExcellentESS delivers strong and consistent growth momentum.
Financial Health Score
WeakESS carries high financial risk with limited liquidity.
Profitability Score
ModerateESS maintains healthy but balanced margins.
Key Financial Metrics
Is ESS Expensive or Cheap?
P/E Ratio
ESS trades at 24.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ESS's PEG of -1.17 indicates potential undervaluation.
Price to Book
The market values Essex Property Trust, Inc. at 2.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.68 times EBITDA. This is generally considered low.
How Well Does ESS Make Money?
Net Profit Margin
For every $100 in sales, Essex Property Trust, Inc. keeps $35.38 as profit after all expenses.
Operating Margin
Core operations generate 43.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.02 in profit for every $100 of shareholder equity.
ROA
Essex Property Trust, Inc. generates $5.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Essex Property Trust, Inc. generates strong operating cash flow of $839.51M, reflecting robust business health.
Free Cash Flow
Essex Property Trust, Inc. generates strong free cash flow of $738.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.47 in free cash annually.
FCF Yield
ESS converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ESS Stacks Against Its Sector Peers
| Metric | ESS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.51 | 24.42 | Neutral |
| ROE | 12.02% | 679.00% | Weak |
| Net Margin | 35.38% | 4598.00% | Weak |
| Debt/Equity | 1.25 | -22.07 (disorted) | Distorted |
| Current Ratio | 0.00 | 14.99 | Weak Liquidity |
| ROA | 5.11% | -1369.00% (disorted) | Weak |
ESS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Essex Property Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.58%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
73.04%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
19.15%
Industry Style: Income, Inflation Hedge, REIT
High Growth