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.

Snowflake

Fundamentals

Established dividend payer with acceptable 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


Market Performance


7 Day Return

-0.7%

ESS

-0.3%

US REITs

1.8%

US Market


1 Year Return

34.6%

ESS

19.5%

US REITs

7.3%

US Market

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

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


Shareholder returns

ESSIndustryMarket
7 Day-0.7%-0.3%1.8%
30 Day-0.05%0.9%-0.7%
90 Day11.4%7.0%0.06%
1 Year38.3%34.6%24.9%19.5%9.7%7.3%
3 Year72.7%58.4%34.5%17.4%46.3%36.9%
5 Year94.5%69.2%63.3%28.9%64.5%46.5%

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?

52.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ESS ($328.66) is trading above our estimate of fair value ($273.95)

Significantly Undervalued: 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 (52.8x) compared to the REITs industry average (36.2x).

PE vs Market: ESS is poor value based on its PE Ratio (52.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ESS is poor value based on its PEG Ratio (11.2x)


Price to Book Ratio

PB vs Industry: ESS is overvalued based on its PB Ratio (3.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESS's forecast earnings growth (4.7% per year) is above the savings rate (2.7%).

Earnings vs Market: ESS's earnings (4.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ESS's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ESS's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ESS's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

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

23.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ESS's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: ESS's earnings growth over the past year (9.4%) is below its 5-year average (23.3% per year).

Earnings vs Industry: ESS earnings growth over the past year (9.4%) underperformed the REITs industry 17.6%.


Return on Equity

High ROE: ESS's Return on Equity (6.8%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: ESS has improved its Return on Capital Employed over the past 3 years.


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?

2.37%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ESS's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ESS's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (56.3%), 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

What is the CEO of Essex Property Trust's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Mike Schall (62yo)

8.8yrs

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 ($USD5.43M) is about average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: ESS's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

69yo

Average Age

Experienced Board: ESS's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$341,00018 Mar 19
Angela Kleiman
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,177
Max PriceUS$289.72
SellUS$778,04818 Mar 19
Michael Schall
EntityIndividual
Role
Chief Executive Officer
President
Shares2,682
Max PriceUS$290.10
SellUS$410,08118 Mar 19
John Burkart
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,413
Max PriceUS$290.22
SellUS$410,02418 Mar 19
John Eudy
EntityIndividual
Shares1,413
Max PriceUS$290.18

Ownership Breakdown


Management Team

  • Mike Schall (62yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$5.43m
  • Craig Zimmerman (68yo)

    Executive VP of Acquisitions & Co-Chief Investment Officer

    • Tenure: 4.4yrs
    • Compensation: US$2.46m
  • Scott Reinert (60yo)

    Senior Vice President of Operations

    • Tenure: 0yrs
  • John Burkart (55yo)

    Chief Operating Officer

    • Tenure: 0.08yrs
    • Compensation: US$3.11m
  • Adam Berry (45yo)

    Co-Chief Investment Officer

    • Tenure: 0.5yrs
  • Angela Kleiman (48yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$2.88m
  • John Farias (50yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.8yrs
  • Patrick Klein

    Senior VP & CTO

    • Tenure: 0yrs
  • Daniel Rosenberg

    Senior VP

    • Tenure: 0yrs
  • Rylan Burns

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Amal Johnson (66yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$161.45k
  • Bud Lyons (69yo)

    Presiding Independent Director

    • Tenure: 0yrs
    • Compensation: US$167.00k
  • George Marcus (78yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$265.80k
  • Keith Guericke (70yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$328.33k
  • Mike Schall (62yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$5.43m
  • Tom Robinson (71yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$164.60k
  • Byron Scordelis (69yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$162.24k
  • Mary Kasaris (63yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$16.15k
  • Janice Sears (58yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$183.70k

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$22.402b
  • Market Cap: US$21.602b
  • Shares outstanding: 68.03m
  • 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

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 Analysis2019/10/17 23:35
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.