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PECO

Phillips Edison NasdaqGS:PECO Stock Report

Last Price

US$33.29

Market Cap

US$4.3b

7D

0.3%

1Y

53.5%

Updated

24 Jun, 2022

Data

Company Financials +
PECO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends3/6

PECO Stock Overview

Phillips Edison & Company, Inc. (“PECO”), an internally-managed REIT, is one of the nation’s largest owners and operators of grocery-anchored shopping centers.

Phillips Edison Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Phillips Edison
Historical stock prices
Current Share PriceUS$33.29
52 Week HighUS$36.35
52 Week LowUS$7.16
Beta0.048
1 Month Change-5.24%
3 Month Change-0.21%
1 Year Change53.48%
3 Year Changen/a
5 Year Changen/a
Change since IPO21.14%

Recent News & Updates

Jun 21

Phillips Edison: Jump Into This REIT Before It Takes Off

Phillips Edison is a large grocery-anchored shopping center REIT with strong portfolio fundamentals. It maintains a solid financial footing and has a promising future with its development pipeline. The present valuation makes the stock a good entry point for income and growth.

Shareholder Returns

PECOUS REITsUS Market
7D0.3%6.5%6.6%
1Y53.5%-8.6%-18.5%

Return vs Industry: PECO exceeded the US REITs industry which returned -9.8% over the past year.

Return vs Market: PECO exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is PECO's price volatile compared to industry and market?
PECO volatility
PECO Average Weekly Movement4.8%
REITs Industry Average Movement4.8%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: PECO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PECO's weekly volatility has decreased from 42% to 5% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1991290Jeff Edisonhttps://www.phillipsedison.com

Phillips Edison & Company, Inc. (“PECO”), an internally-managed REIT, is one of the nation’s largest owners and operators of grocery-anchored shopping centers. PECO’s diversified portfolio of well-occupied neighborhood shopping centers features a mix of national and regional retailers selling necessity-based goods and services in fundamentally strong markets throughout the United States. Through its vertically-integrated operating platform, the Company manages a portfolio of 309 properties, including 283 wholly-owned properties comprising approximately 31.7 million square feet across 31 states (as of September 30, 2020).

Phillips Edison Fundamentals Summary

How do Phillips Edison's earnings and revenue compare to its market cap?
PECO fundamental statistics
Market CapUS$4.26b
Earnings (TTM)US$25.10m
Revenue (TTM)US$544.63m

151.1x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PECO income statement (TTM)
RevenueUS$544.63m
Cost of RevenueUS$160.33m
Gross ProfitUS$384.30m
Other ExpensesUS$359.20m
EarningsUS$25.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.22
Gross Margin70.56%
Net Profit Margin4.61%
Debt/Equity Ratio74.0%

How did PECO perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

49%

Payout Ratio

Does PECO pay a reliable dividends?

See PECO dividend history and benchmarks
When do you need to buy PECO by to receive an upcoming dividend?
Phillips Edison dividend dates
Ex Dividend DateJul 14 2022
Dividend Pay DateAug 01 2022
Days until Ex dividend19 days
Days until Dividend pay date37 days

Does PECO pay a reliable dividends?

See PECO dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is PECO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PECO?

Other financial metrics that can be useful for relative valuation.

PECO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.1x
Enterprise Value/EBITDA18.3x
PEG Ratio4.4x

Price to Sales Ratio vs Peers

How does PECO's PS Ratio compare to its peers?

PECO PS Ratio vs Peers
The above table shows the PS ratio for PECO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.6x

Price-To-Sales vs Peers: PECO is expensive based on its Price-To-Sales Ratio (7x) compared to the peer average (6.6x).


Price to Earnings Ratio vs Industry

How does PECO's PE Ratio compare vs other companies in the U.S. REITs Industry?

Price-To-Sales vs Industry: PECO is expensive based on its Price-To-Sales Ratio (7x) compared to the US REITs industry average (5.8x)


Price to Sales Ratio vs Fair Ratio

What is PECO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PECO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: PECO is expensive based on its Price-To-Sales Ratio (7x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


Share Price vs Fair Value

What is the Fair Price of PECO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PECO ($33.29) is trading below our estimate of fair value ($59.46)

Significantly Below Fair Value: PECO is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: PECO is poor value based on its PEG Ratio (4.4x)


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Future Growth

How is Phillips Edison forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


34.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PECO's forecast earnings growth (34.1% per year) is above the savings rate (1.9%).

Earnings vs Market: PECO's earnings (34.1% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: PECO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PECO's revenue (7.1% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: PECO's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PECO's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Phillips Edison performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PECO has high quality earnings.

Growing Profit Margin: PECO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PECO has become profitable over the past 5 years, growing earnings by 22.9% per year.

Accelerating Growth: PECO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PECO has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (69.5%).


Return on Equity

High ROE: PECO's Return on Equity (1.1%) is considered low.


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Financial Health

How is Phillips Edison's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PECO's short term assets ($129.3M) exceed its short term liabilities ($94.3M).

Long Term Liabilities: PECO's short term assets ($129.3M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: PECO's net debt to equity ratio (73.8%) is considered high.

Reducing Debt: PECO's debt to equity ratio has reduced from 92% to 74% over the past 5 years.

Debt Coverage: PECO's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: PECO's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


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Dividend

What is Phillips Edison current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.24%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 25 2022Ex Dividend DateJul 14 2022Dividend Pay DateAug 01 202218 days from Ex DividendBuy in the next 19 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PECO's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PECO's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.34%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PECO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PECO's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.6%), PECO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.4%), PECO's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Jeff Edison (60 yo)

12.5yrs

Tenure

US$8,807,044

Compensation

Mr. Jeffrey S. Edison, also known as Jeff, is the Founding Partner at Phillips Edison & Company and has been its Principal since 1995. Mr. Edison served as Chairman and Chief Executive Officer at Phillips...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD8.81M) is about average for companies of similar size in the US market ($USD6.92M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PECO's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: PECO's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20%.


Top Shareholders

Company Information

Phillips Edison & Company, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Phillips Edison & Company, Inc.
  • Ticker: PECO
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$4.265b
  • Market Cap: US$3.792b
  • Shares outstanding: 128.40m
  • Website: https://www.phillipsedison.com

Number of Employees


Location

  • Phillips Edison & Company, Inc.
  • 11501 Northlake Drive
  • Cincinnati
  • Ohio
  • 45249
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.