Essex Property Trust, Inc. (ESS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ventas, Inc.

Equity Residential

Invitation Homes, Inc.

AvalonBay Communities, Inc.

Essex Property Trust, Inc.

Mid-America Apartment Communities, Inc.

Weyerhaeuser Co.

Sun Communities, Inc.

Iron Mountain, Inc.

SBA Communications Corp.

Alexandria Real Estate Equities, Inc.

Why is Essex Property Trust, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.09% and Operating profit at 4.56%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1,084.16 MM
ROCE(HY) Highest at 14.4%
DIVIDEND PER SHARE(HY) Highest at USD 9.89

With ROE of 12.06%, it has a expensive valuation with a 3.34 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.69%, its profits have risen by 27.9% ; the PEG ratio of the company is 1

Below par performance in long term as well as near term

Along with generating -13.69% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Essex Property Trust, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Essex Property Trust, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Essex Property Trust, Inc.

-14.54%

-0.14

24.86%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.09%

EBIT Growth (5y)

4.56%

EBIT to Interest (avg)

3.57

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

84.91%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

13.87%

ROE (avg)

9.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.34

EV to EBIT

29.02

EV to EBITDA

15.05

EV to Capital Employed

3.39

EV to Sales

10.21

PEG Ratio

1.00

Dividend Yield

3.42%

ROCE (Latest)

11.67%

ROE (Latest)

12.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,084.16 MM

ROCE(HY)

Highest at 14.4%

DIVIDEND PER SHARE(HY)

Highest at USD 9.89

NET SALES(Q)

Highest at USD 469.83 MM

PRE-TAX PROFIT(Q)

At USD 231.53 MM has Grown at 133.9%

NET PROFIT(Q)

At USD 221.36 MM has Grown at 138.24%

RAW MATERIAL COST(Y)

Fallen by -1.38% (YoY

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 455.6

DIVIDEND PAYOUT RATIO(Y)

Lowest at 74.78%

INTEREST(Q)

Highest at USD 67.51 MM

Here's what is working for Essex Property Trust, Inc.

Operating Cash Flow

Highest at USD 1,084.16 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 469.83 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 231.53 MM has Grown at 133.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 221.36 MM has Grown at 138.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 9.89 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -1.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 151.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Essex Property Trust, Inc.

Interest Coverage Ratio

Lowest at 455.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 67.51 MM

in the last five periods and Increased by 7.61% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 74.78%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)