NYSE:EGP

Stock Analysis Report

Executive Summary

EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina.

Rewards

Trading at 13.4% below its fair value

Revenue is forecast to grow 8.54% per year

Earnings grew by 37.5% over the past year

Pays a high and reliable dividend of 2.86%

Risk Analysis

Earnings are forecast to decline by an average of -2.5% per year for the next 3 years

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has EastGroup Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EGP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.5%

EGP

15.8%

US REITs

7.2%

US Market


1 Year Return

-6.9%

EGP

-20.1%

US REITs

-10.4%

US Market

Return vs Industry: EGP exceeded the US REITs industry which returned -19.8% over the past year.

Return vs Market: EGP exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

EGPIndustryMarket
7 Day6.5%15.8%7.2%
30 Day-16.7%-19.2%-12.6%
90 Day-21.1%-24.6%-19.4%
1 Year-4.5%-6.9%-16.8%-20.1%-8.5%-10.4%
3 Year52.7%40.6%-0.7%-13.1%15.8%8.3%
5 Year101.1%71.3%13.3%-10.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is EastGroup Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EastGroup Properties undervalued compared to its fair value and its price relative to the market?

13.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGP ($104.99) is trading below our estimate of fair value ($121.3)

Significantly Below Fair Value: EGP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EGP is poor value based on its PE Ratio (32.3x) compared to the REITs industry average (24.1x).

PE vs Market: EGP is poor value based on its PE Ratio (32.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: EGP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EGP is overvalued based on its PB Ratio (3.4x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is EastGroup Properties forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGP's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: EGP's earnings are forecast to decline over the next 3 years (-2.5% per year).

High Growth Earnings: EGP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EGP's revenue (8.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EGP's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGP's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has EastGroup Properties performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGP has a large one-off gain of $41.2M impacting its December 31 2019 financial results.

Growing Profit Margin: EGP's current net profit margins (36.8%) are higher than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: EGP's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: EGP's earnings growth over the past year (37.5%) exceeds its 5-year average (13% per year).

Earnings vs Industry: EGP earnings growth over the past year (37.5%) exceeded the REITs industry 5%.


Return on Equity

High ROE: EGP's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is EastGroup Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EGP has a high level of physical assets or inventory.

Debt Coverage by Assets: EGP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: EGP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if EGP has a sufficient allowance for bad loans.

Low Risk Liabilities: EGP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if EGP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EGP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if EGP has an appropriate level of bad loans.


Next Steps

Dividend

What is EastGroup Properties's current dividend yield, its reliability and sustainability?

2.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGP's dividend (2.86%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: EGP's dividend (2.86%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: EGP's dividends per share have been stable in the past 10 years.

Growing Dividend: EGP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), EGP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGP's dividends in 3 years are forecast to be thoroughly covered by earnings (1.2% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Marshall Loeb (57yo)

4.17s

Tenure

US$4,359,232

Compensation

Mr. Marshall A. Loeb has been Director at Lamar Advertising Company since May 17, 2018. He has been the Chief Executive Officer and President of EastGroup Properties Inc. since January 1, 2016 and March 1, ...


CEO Compensation Analysis

Compensation vs Market: Marshall's total compensation ($USD4.36M) is about average for companies of similar size in the US market ($USD5.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marshall Loeb
President4.17yrsUS$4.36m0.15% $6.2m
Brent Wood
Executive VP2.58yrsUS$1.84m0.25% $10.0m
John Coleman
Executive VP & Head of Eastern Regional19.17yrsUS$1.58m0.26% $10.5m
R. Dunbar
Senior VP & Head of Texas Region2.83yrsUS$1.47m0.028% $1.1m
Ryan Collins
Senior VP & Head of Western Region2.83yrsUS$1.12m0.022% $890.3k
C. Corkern
Senior VP15.17yrsUS$1.46m0.16% $6.7m
Wendi Powers
Investor Relations4.17yrsno datano data
Shelby Trusty
Director of Human Resourcesno datano datano data
Staci Tyler
VP & Controller2.83yrsno datano data
Brian Laird
Vice President of Information Technologyno datano datano data

3.5yrs

Average Tenure

49yo

Average Age

Experienced Management: EGP's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marshall Loeb
President4.17yrsUS$4.36m0.15% $6.2m
Leland Speed
Chairman Emeritus4.17yrsUS$145.86k0.53% $21.6m
David Hoster
Chairman of the Board4.17yrsUS$274.61k0.53% $21.6m
H. Bolton
Lead Independent Director4.17yrsUS$161.86k0.028% $1.2m
D. Aloian
Independent Director20.42yrsUS$173.36k0.080% $3.2m
H. Bailey
Independent Director40.17yrsUS$149.86k0.0088% $356.0k
Hayden Eaves
Independent Director18yrsUS$165.36k0.027% $1.1m
Donald Colleran
Independent Director2.58yrsUS$136.86k0.0068% $277.3k
Mary Elizabeth McCormick
Independent Director14.67yrsUS$162.86k0.049% $2.0m

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: EGP's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EGP insiders have only sold shares 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 5.7%.


Top Shareholders

Company Information

EastGroup Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EastGroup Properties, Inc.
  • Ticker: EGP
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: US$4.060b
  • Shares outstanding: 38.77m
  • Website: https://www.eastgroup.net

Number of Employees


Location

  • EastGroup Properties, Inc.
  • 400 West Parkway Place
  • Suite 100
  • Ridgeland
  • Mississippi
  • 39157
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGPNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1972
EGODB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1972

Biography

EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.6 million square feet. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:44
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.