Phillips Edison & Company, Inc.
Phillips Edison & Company, Inc. Fundamental Analysis
Phillips Edison & Company, Inc. (PECO) shows weak financial fundamentals with a PE ratio of 43.04, profit margin of 15.32%, and ROE of 4.86%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 8.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PECO's fundamental strength across five key dimensions:
Efficiency Score
WeakPECO struggles to generate sufficient returns from assets.
Valuation Score
ModeratePECO shows balanced valuation metrics.
Growth Score
ModeratePECO shows steady but slowing expansion.
Financial Health Score
WeakPECO carries high financial risk with limited liquidity.
Profitability Score
ModeratePECO maintains healthy but balanced margins.
Key Financial Metrics
Is PECO Expensive or Cheap?
P/E Ratio
PECO trades at 43.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PECO's PEG of 1.24 indicates fair valuation.
Price to Book
The market values Phillips Edison & Company, Inc. at 2.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.73 times EBITDA. This is generally considered low.
How Well Does PECO Make Money?
Net Profit Margin
For every $100 in sales, Phillips Edison & Company, Inc. keeps $15.32 as profit after all expenses.
Operating Margin
Core operations generate 46.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.86 in profit for every $100 of shareholder equity.
ROA
Phillips Edison & Company, Inc. generates $2.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Phillips Edison & Company, Inc. generates strong operating cash flow of $350.38M, reflecting robust business health.
Free Cash Flow
Phillips Edison & Company, Inc. generates strong free cash flow of $213.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.70 in free cash annually.
FCF Yield
PECO converts 4.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PECO Stacks Against Its Sector Peers
| Metric | PECO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.04 | 23.43 | Worse (Expensive) |
| ROE | 4.86% | 685.00% | Weak |
| Net Margin | 15.32% | 2002.00% | Weak |
| Debt/Equity | 1.09 | -21.97 (disorted) | Distorted |
| Current Ratio | 0.66 | 11.11 | Weak Liquidity |
| ROA | 2.10% | 166.00% | Weak |
PECO 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 Phillips Edison & Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.49%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
176.48%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
31.08%
Industry Style: Income, Inflation Hedge, REIT
High Growth