* Note: Prices are in Million (M) USD.
Description:
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns and manages single-tenant properties in the United States. The company is headquartered in Princeton, New Jersey.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $41 M
Debt : $2,128 M
EBITDA : $457 M
Net Debt (Debt - Cash): $2,088 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real Estate
Industry: REIT - Retail
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 14.42
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-237 M
Average Revenue: $200 M
Revenue Converted To Free Cash Flow (%): -119%
Avg Free Cash Flow Growth Per Year (Last 5 Years): -101.85%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $450 M
Revenue 4 Years Ago (2020-12-31): $164 M
Last 5 Years Average Revenue Growth: 35%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $177 M
Share Count 5 Years Ago (2020-12-31): $96 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.19
Trailing 12-Month Earnings Per Share (EPS): $2.03
Average Earnings Per Share (EPS): $2.11
Dividend Per Share (DPS): $1
Payout Ratio: 56%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 4%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $30
52-Week Low: $27
Threshold Price (15% Above 52-Week Low): $31
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,084 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Essential Properties Realty Trust Inc (EPRT) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 33.04, Fair Value PE 15, Industry Based PE is 20 and Growth based PE is 17. Based on these all values average assigned is 21.26.
Value-Trades has assined P/E value 21.26. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.11.
The fair value of Essential Properties Realty Trust Inc (EPRT) stock should be (21.26 x $2.11) = $44.86
