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.

Snowflake

Fundamentals

Established dividend payer with imperfect balance sheet.


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


Market Performance


7 Day Return

0.9%

NYSE:EGP

1.4%

US REITs

2.1%

US Market


1 Year Return

29.1%

NYSE:EGP

10.4%

US REITs

-0.04%

US Market

EGP outperformed the REITs industry which returned 9.9% over the past year.

EGP outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

EGPIndustryMarket
7 Day0.9%1.4%2.1%
30 Day4.9%3.6%-3.2%
90 Day9.4%3.7%2.8%
1 Year32.9%29.1%15.4%10.4%2.2%-0.04%
3 Year86.2%70.2%25.8%9.4%41.5%32.3%
5 Year127.7%92.1%60.2%26.1%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

49.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

EastGroup Properties's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

EastGroup Properties's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

EastGroup Properties is overvalued based on earnings compared to the US REITs industry average.

EastGroup Properties is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

EastGroup Properties earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

EastGroup Properties is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is EastGroup Properties expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

EastGroup Properties's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

EastGroup Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

EastGroup Properties's revenue growth is expected to exceed the United States of America market average.

EastGroup Properties's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

EastGroup Properties's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

EastGroup Properties is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has EastGroup Properties performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

EastGroup Properties's year on year earnings growth rate has been positive over the past 5 years.

EastGroup Properties's 1-year earnings growth is less than its 5-year average (13.2% vs 15%)

EastGroup Properties's earnings growth has not exceeded the US REITs industry average in the past year (13.2% vs 16.9%).


Return on Equity

EastGroup Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

EastGroup Properties used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

EastGroup Properties's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is EastGroup Properties's financial position?


Financial Position Analysis

EastGroup Properties's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

EastGroup Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

EastGroup Properties's level of debt (113.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (173.4% vs 113.6% today).

Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

2.51%

Expected Dividend Yield


Dividend Yield and Payments Analysis

EastGroup Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

EastGroup Properties's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (69.6x coverage).


Next Steps

Management

What is the CEO of EastGroup Properties's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Marshall Loeb (57yo)

3.6yrs

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

Marshall's remuneration is about average for companies of similar size in United States of America.

Marshall's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

53yo

Average Age

The tenure for the EastGroup Properties management team is about average.


Board Age and Tenure

3.7yrs

Average Tenure

64yo

Average Age

The tenure for the EastGroup Properties board of directors is about average.


Insider Trading

EastGroup Properties individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$104,40204 Jun 19
David Hoster
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares942
Max PriceUS$110.83
SellUS$1,110,89228 Mar 19
John Coleman
EntityIndividual
Role
Senior Key Executive
Executive VP & Head of Eastern Regional
Shares10,000
Max PriceUS$111.09
SellUS$995,67529 Nov 18
John Coleman
EntityIndividual
Role
Senior Key Executive
Executive VP & Head of Eastern Regional
Shares10,000
Max PriceUS$99.57
SellUS$599,72329 Nov 18
Brent Wood
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares6,000
Max PriceUS$99.95
SellUS$25,61231 Oct 18
H. Bailey
EntityIndividual
Role
Member of the Board of Directors
Director
Shares264
Max PriceUS$97.01

Ownership Breakdown


Management Team

  • Bruce Corkern (57yo)

    Senior VP

    • Tenure: 14.6yrs
    • Compensation: US$1.46m
  • Marshall Loeb (57yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$4.36m
  • John Coleman (59yo)

    Executive VP & Head of Eastern Regional

    • Tenure: 18.6yrs
    • Compensation: US$1.58m
  • Brent Wood (49yo)

    Executive VP

    • Tenure: 2.0yrs
    • Compensation: US$1.84m
  • Brian Laird

    Vice President of Information Technology

    • Tenure: 0.0yrs
  • Staci Tyler

    VP & Controller

    • Tenure: 2.3yrs
  • Shelby Trusty

    Director of Human Resources

    • Tenure: 0.0yrs
  • R. Dunbar (43yo)

    Senior Vice President of Texas Region

    • Tenure: 2.3yrs
    • Compensation: US$1.47m
  • Ryan Collins (38yo)

    Senior VP & Head of Western Region

    • Tenure: 2.3yrs
    • Compensation: US$1.12m
  • Wendi Powers

    Investor Relations

    • Tenure: 3.6yrs

Board Members

  • Leland Speed (86yo)

    Chairman Emeritus

    • Tenure: 3.6yrs
    • Compensation: US$145.86k
  • David Hoster (73yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$274.61k
  • H. Bolton (62yo)

    Lead Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$161.86k
  • Marshall Loeb (57yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$4.36m
  • D. Aloian (64yo)

    Director

    • Tenure: 19.9yrs
    • Compensation: US$173.36k
  • H. Bailey (79yo)

    Director

    • Tenure: 39.6yrs
    • Compensation: US$149.86k
  • Hayden Eaves (73yo)

    Director

    • Tenure: 17.4yrs
    • Compensation: US$165.36k
  • Don Colleran (63yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$136.86k
  • Beth McCormick (62yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: US$162.86k

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$4.641b
  • Shares outstanding: 37.43m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:34
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.