NYSE:ESS

Stock Analysis Report

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.

Rewards

Earnings are forecast to grow 1.99% per year

Earnings grew by 12.6% over the past year

Pays a high and reliable dividend of 2.43%

Risk Analysis

No risks detected for ESS from our risk checks.


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

0.04%

ESS

-0.5%

US REITs

0.5%

US Market


1 Year Return

14.9%

ESS

14.9%

US REITs

20.3%

US Market

Return vs Industry: ESS matched the US REITs industry which returned 14.9% over the past year.

Return vs Market: ESS underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

ESSIndustryMarket
7 Day0.04%-0.5%0.5%
30 Day3.3%2.1%2.0%
90 Day3.5%6.5%9.4%
1 Year17.9%14.9%19.6%14.9%22.8%20.3%
3 Year51.3%38.9%36.4%19.3%50.1%40.4%
5 Year67.9%46.0%58.1%25.5%73.1%54.1%

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?

48.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESS ($321.63) is trading above our estimate of fair value ($318.38)

Significantly Below Fair Value: ESS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESS is poor value based on its PE Ratio (48.2x) compared to the REITs industry average (36.3x).

PE vs Market: ESS is poor value based on its PE Ratio (48.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ESS is poor value based on its PEG Ratio (24.2x)


Price to Book Ratio

PB vs Industry: ESS is overvalued based on its PB Ratio (3.4x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Essex Property Trust forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESS's forecast earnings growth (2% per year) is above the savings rate (1.7%).

Earnings vs Market: ESS's earnings (2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ESS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESS's revenue (2.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ESS's revenue (2.3% 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 (7.2%).


Next Steps

Past Performance

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

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESS has high quality earnings.

Growing Profit Margin: ESS's current net profit margins (28.7%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: ESS's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: ESS's earnings growth over the past year (12.6%) is below its 5-year average (16.9% per year).

Earnings vs Industry: ESS earnings growth over the past year (12.6%) exceeded the REITs industry 6.9%.


Return on Equity

High ROE: ESS's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Essex Property Trust'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: ESS has a high level of physical assets or inventory.

Debt Coverage by Assets: ESS's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: ESS's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ESS's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 (53.6%), 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 (0.8% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Mike Schall (62yo)

9.1yrs

Tenure

US$5,434,232

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 ($USD5.43M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Schall
President9.1yrsUS$5.43m0.068% $15.2m
Angela Kleiman
Executive VP & CFO4.3yrsUS$2.88m0.0087% $1.9m
John Burkart
Chief Operating Officer0.4yrsUS$3.11m0.0034% $755.4k
Craig Zimmerman
0.08yrsUS$2.46m0.017% $3.8m
Scott Reinert
Senior Vice President of Operations0yrsno datano data
Adam Berry
Chief Investment Officer0.2yrsno data0.0037% $813.0k
John Farias
Senior VP & Chief Accounting Officer5.1yrsno data0.0011% $239.3k
Patrick Klein
Senior VP & CTO0yrsno datano data
Rylan Burns
Director of Investor Relations0yrsno datano data
Daniel Rosenberg
Senior VP0yrsno datano data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: ESS's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Schall
President9.1yrsUS$5.43m0.068% $15.2m
Amal Johnson
Independent Director2yrsUS$161.45k0.0023% $502.9k
Irving Lyons
Presiding Independent Director0yrsUS$167.00k0.012% $2.6m
George Marcus
Independent Chairman of the Board0yrsUS$265.80k1.68% $372.4m
Keith Guericke
Vice Chairman of the Board0yrsUS$328.33k0.039% $8.6m
Thomas Robinson
Independent Director5.8yrsUS$164.60k0.0069% $1.5m
Byron Scordelis
Independent Director8.8yrsUS$162.24k0.0044% $981.4k
Mary Kasaris
Independent Director1.4yrsUS$16.15k0.00068% $150.6k
Janice Sears
Independent Director8.8yrsUS$183.70k0.0016% $363.3k

7.3yrs

Average Tenure

69yo

Average Age

Experienced Board: ESS's board of directors are considered experienced (7.3 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.


Recent Insider Transactions

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$22.153b
  • Market Cap: US$21.257b
  • Shares outstanding: 68.39m
  • 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 249 apartment communities comprising approximately 60,000 apartment homes with an additional 7 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 Analysis2020/02/20 00:11
End of Day Share Price2020/02/19 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.