NYSE:ESS

Stock Analysis Report

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Executive Summary

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Essex Property Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

ESS

2.8%

US REITs

1.6%

US Market


1 Year Return

-21.4%

ESS

-10.0%

US REITs

4.8%

US Market

Return vs Industry: ESS underperformed the US REITs industry which returned -10% over the past year.

Return vs Market: ESS underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

ESSIndustryMarket
7 Day3.4%2.8%1.6%
30 Day-3.9%0.4%2.3%
90 Day24.2%23.4%29.5%
1 Year-19.0%-21.4%-6.3%-10.0%7.1%4.8%
3 Year2.1%-6.7%16.9%2.6%37.1%28.1%
5 Year24.0%7.3%44.6%14.9%67.2%48.6%

Price Volatility Vs. Market

How volatile is Essex Property Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Essex Property Trust undervalued compared to its fair value and its price relative to the market?

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESS ($237.05) is trading below our estimate of fair value ($310.61)

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


Price To Earnings Ratio

PE vs Industry: ESS is good value based on its PE Ratio (24.6x) compared to the REITs industry average (28.1x).

PE vs Market: ESS is poor value based on its PE Ratio (24.6x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ESS is overvalued based on its PB Ratio (2.5x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Essex Property Trust forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESS's earnings are forecast to decline over the next 3 years (-10.4% per year).

Earnings vs Market: ESS's earnings are forecast to decline over the next 3 years (-10.4% per year).

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

Revenue vs Market: ESS's revenue (3.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ESS's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESS's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Essex Property Trust performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESS has a large one-off gain of $238.0M impacting its March 31 2010 financial results.

Growing Profit Margin: ESS's current net profit margins (39.2%) are higher than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: ESS's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: ESS's earnings growth over the past year (52%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: ESS earnings growth over the past year (52%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: ESS's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Essex Property Trust's financial position?


Financial Position Analysis

Short Term Liabilities: ESS's short term assets ($362.7M) do not cover its short term liabilities ($613.7M).

Long Term Liabilities: ESS's short term assets ($362.7M) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: ESS's debt to equity ratio (100.6%) is considered high.

Reducing Debt: ESS's debt to equity ratio has increased from 85.9% to 100.6% over the past 5 years.

Debt Coverage: ESS's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: ESS's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Essex Property Trust current dividend yield, its reliability and sustainability?

3.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESS's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: ESS's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), ESS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ESS's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Mike Schall (63yo)

9.5yrs

Tenure

US$6,419,864

Compensation

Mr. Michael J. Schall, also known as Mike, CPA, has been the Chief Executive Officer and President of Essex Property Trust, Inc. since January 1, 2011. Mr. Schall served as the Chief Operating Officer from ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.42M) is below average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Schall
President9.5yrsUS$6.42m0.069% $11.2m
Angela Kleiman
Executive VP & CFO4.75yrsUS$3.11m0.0088% $1.4m
John Burkart
Senior EVP & COO0.83yrUS$3.77m0.0034% $559.2k
Adam Berry
Executive VP & Chief Investment Officer0.50yrUS$2.21m0.0040% $640.2k
Craig Zimmerman
0.50yrUS$2.91m0.017% $2.8m
John Farias
Senior VP & Chief Accounting Officer5.5yrsno data0.0011% $176.7k
Patrick Klein
Senior VP & CTOno datano datano data
Rylan Burns
Director of Investor Relationsno datano datano data
Anne Morrison
Senior VPno datano datano data
Deborah Jones
Senior Vice President of Human Resources4yrsno datano data

4.0yrs

Average Tenure

56yo

Average Age

Experienced Management: ESS's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Schall
President9.5yrsUS$6.42m0.069% $11.2m
Amal Johnson
Independent Director2.42yrsUS$205.30k0.0023% $371.2k
Irving Lyons
Lead Independent Directorno dataUS$206.45k0.012% $1.9m
George Marcus
Independent Chairman of the Boardno dataUS$302.45k1.71% $276.8m
Keith Guericke
Vice Chairman of the Boardno dataUS$477.05k0.039% $6.3m
Thomas Robinson
Independent Director6.25yrsUS$202.55k0.0069% $1.1m
Byron Scordelis
Independent Director9.17yrsUS$205.95k0.0045% $724.5k
Maria Hawthorne
Independent Director0.33yrno datano data
Mary Kasaris
Independent Director1.83yrsUS$201.55k0.00069% $111.8k

4.3yrs

Average Tenure

70yo

Average Age

Experienced Board: ESS'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Essex Property Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essex Property Trust, Inc.
  • Ticker: ESS
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$16.209b
  • Market Cap: US$15.507b
  • Shares outstanding: 67.71m
  • Website: https://www.essexapartmenthomes.com

Number of Employees


Location

  • Essex Property Trust, Inc.
  • 1100 Park Place
  • Suite 200
  • San Mateo
  • California
  • 94403
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESSNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1994
EXPDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1994
0IIRLSE (London Stock Exchange)YesCommon StockGBUSDJun 1994
E1SS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2020

Biography

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 250 apartment communities comprising approximately 60,000 apartment homes with an additional 6 properties in various stages of active development. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 23:54
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.