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 questionable 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


Market Performance


7 Day Return

1.4%

EGP

-0.3%

US REITs

1.8%

US Market


1 Year Return

36.8%

EGP

19.5%

US REITs

7.3%

US Market

Return vs Industry: EGP exceeded the US REITs industry which returned 19.5% over the past year.

Return vs Market: EGP exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

EGPIndustryMarket
7 Day1.4%-0.3%1.8%
30 Day0.5%0.9%-0.7%
90 Day9.4%7.0%0.06%
1 Year40.5%36.8%24.9%19.5%9.7%7.3%
3 Year99.6%82.9%34.5%17.4%46.3%36.9%
5 Year125.9%91.2%63.3%28.9%64.5%46.5%

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?

50.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EGP ($127.55) is trading above our estimate of fair value ($92.66)

Significantly Undervalued: EGP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EGP is poor value based on its PE Ratio (50.9x) compared to the REITs industry average (36.2x).

PE vs Market: EGP is poor value based on its PE Ratio (50.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (4.7x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

-1.3%

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 (-1.3% per year).

Earnings vs Market: EGP's earnings are forecast to decline over the next 3 years (-1.3% per year).

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

Revenue vs Market: EGP's revenue (8.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EGP's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EGP's Return on Equity is forecast to be low in 3 years time (8.8%).


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

Earnings Trend: EGP's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: EGP's earnings growth over the past year (13.2%) is below its 5-year average (15% per year).

Earnings vs Industry: EGP earnings growth over the past year (13.2%) underperformed the REITs industry 17.6%.


Return on Equity

High ROE: EGP's Return on Equity (9%) is considered low.


Return on Assets

ROA vs Industry: EGP has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: EGP has not improved its Return on Capital Employed over the past 3 years.


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 0x 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?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EGP's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EGP's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 reasonably low payout ratio (45.3%), EGP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGP's dividends in 3 years are forecast to be thoroughly covered by earnings (1.4% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Marshall Loeb (57yo)

3.8yrs

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 ($USD4.36M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.1yrs

Average Tenure

53yo

Average Age

Experienced Management: EGP's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

64yo

Average Age

Experienced Board: EGP's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: EGP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$60,99326 Aug 19
H. Bailey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares490
Max PriceUS$124.48
SellUS$398,32026 Aug 19
Brent Wood
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares3,250
Max PriceUS$122.56
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
Independent Director
Shares264
Max PriceUS$97.01

Ownership Breakdown


Management Team

  • Bruce Corkern (57yo)

    Senior VP

    • Tenure: 14.8yrs
    • Compensation: US$1.46m
  • Marshall Loeb (57yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$4.36m
  • John Coleman (59yo)

    Executive VP & Head of Eastern Regional

    • Tenure: 18.8yrs
    • Compensation: US$1.58m
  • Brent Wood (49yo)

    Executive VP

    • Tenure: 2.2yrs
    • Compensation: US$1.84m
  • Brian Laird

    Vice President of Information Technology

    • Tenure: 0yrs
  • Staci Tyler

    VP & Controller

    • Tenure: 2.4yrs
  • Shelby Trusty

    Director of Human Resources

    • Tenure: 0yrs
  • R. Dunbar (43yo)

    Senior Vice President of Texas Region

    • Tenure: 2.4yrs
    • Compensation: US$1.47m
  • Ryan Collins (38yo)

    Senior VP & Head of Western Region

    • Tenure: 2.4yrs
    • Compensation: US$1.12m
  • Wendi Powers

    Investor Relations

    • Tenure: 3.8yrs

Board Members

  • Leland Speed (86yo)

    Chairman Emeritus

    • Tenure: 3.8yrs
    • Compensation: US$145.86k
  • David Hoster (73yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$274.61k
  • H. Bolton (62yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$161.86k
  • Marshall Loeb (57yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$4.36m
  • D. Aloian (64yo)

    Independent Director

    • Tenure: 20.1yrs
    • Compensation: US$173.36k
  • H. Bailey (79yo)

    Independent Director

    • Tenure: 39.8yrs
    • Compensation: US$149.86k
  • Hayden Eaves (73yo)

    Independent Director

    • Tenure: 17.6yrs
    • Compensation: US$165.36k
  • Don Colleran (63yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$136.86k
  • Beth McCormick (62yo)

    Independent Director

    • Tenure: 14.3yrs
    • 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$4.774b
  • 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 Analysis2019/10/17 23:33
End of Day Share Price2019/10/17 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.