NYSE:ESS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$20.7b

Last Updated

2021/06/24 00:53 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Established dividend payer and overvalued.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ESS's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

ESS

-0.4%

US REITs

0.5%

US Market


1 Year Return

34.9%

ESS

33.5%

US REITs

42.6%

US Market

Return vs Industry: ESS exceeded the US REITs industry which returned 33.5% over the past year.

Return vs Market: ESS underperformed the US Market which returned 42.6% over the past year.


Shareholder returns

ESSIndustryMarket
7 Day-0.5%-0.4%0.5%
30 Day5.1%4.1%1.9%
90 Day10.6%13.1%7.9%
1 Year39.8%34.9%38.0%33.5%44.9%42.6%
3 Year44.9%31.9%43.9%27.7%64.4%54.1%
5 Year58.2%36.9%51.5%22.3%128.3%102.7%

Long-Term 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?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESS ($307.34) is trading below our estimate of fair value ($323.13)

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


Price To Earnings Ratio

PE vs Industry: ESS is poor value based on its PE Ratio (47.4x) compared to the US REITs industry average (46.8x).

PE vs Market: ESS is poor value based on its PE Ratio (47.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ESS is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: ESS is overvalued based on its PB Ratio (3.3x) compared to the US REITs industry average (1.9x).


Future Growth

How is Essex Property Trust forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESS's forecast earnings growth (6.5% per year) is above the savings rate (2%).

Earnings vs Market: ESS's earnings (6.5% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: ESS's revenue (4.7% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: ESS's revenue (4.7% 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 (6.7%).


Past Performance

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

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESS has a large one-off gain of $185.6M impacting its March 31 2021 financial results.

Growing Profit Margin: ESS's current net profit margins (27.9%) are lower than last year (39.1%).


Past Earnings Growth Analysis

Earnings Trend: ESS's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: ESS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ESS had negative earnings growth (-33.5%) over the past year, making it difficult to compare to the REITs industry average (-10.7%).


Return on Equity

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


Financial Health

How is Essex Property Trust's financial position?


Financial Position Analysis

Short Term Liabilities: ESS's short term assets ($464.4M) exceed its short term liabilities ($389.0M).

Long Term Liabilities: ESS's short term assets ($464.4M) do not cover its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: ESS's debt to equity ratio (97.5%) is considered high.

Reducing Debt: ESS's debt to equity ratio has increased from 86.4% to 97.5% over the past 5 years.

Debt Coverage: ESS's debt is not well covered by operating cash flow (12%).

Interest Coverage: ESS's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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

2.72%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 24 2021Ex Dividend DateJun 29 2021Dividend Pay DateJul 15 202116 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ESS's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: ESS's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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 (64%), 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 covered by earnings (64.3% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Mike Schall (63 yo)

10.42yrs

Tenure

US$6,555,745

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. He was Senior Executive Vice President and Chief Oper...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.56M) is below average for companies of similar size in the US market ($USD11.28M).

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


Leadership Team

Experienced Management: ESS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: ESS's board of directors are considered experienced (5.3 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$20.682b
  • Market Cap: US$19.977b
  • Shares outstanding: 67.29m
  • 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


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 Wes...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 00:53
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.