Essential Properties Return On Equity vs. Profit Margin
| EPRT Stock | USD 33.96 0.14 0.41% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.06402617 | Current Value 0.0672 | Quarterly Volatility 0.01638535 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.74 | 0.9772 |
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| Net Profit Margin | 0.56 | 0.5303 |
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| Operating Profit Margin | 0.38 | 0.6751 |
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| Pretax Profit Margin | 0.56 | 0.5341 |
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| Return On Assets | 0.042 | 0.04 |
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| Return On Equity | 0.0672 | 0.064 |
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For Essential Properties profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Essential Properties to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Essential Properties Realty utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Essential Properties's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Essential Properties Realty over time as well as its relative position and ranking within its peers.
Essential |
Is Diversified REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essential Properties. If investors know Essential will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essential Properties listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.06) | Dividend Share 1.15 | Revenue Per Share 2.537 | Quarterly Revenue Growth 0.278 | Return On Assets 0.0339 |
The market value of Essential Properties is measured differently than its book value, which is the value of Essential that is recorded on the company's balance sheet. Investors also form their own opinion of Essential Properties' value that differs from its market value or its book value, called intrinsic value, which is Essential Properties' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essential Properties' market value can be influenced by many factors that don't directly affect Essential Properties' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essential Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Essential Properties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essential Properties' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Essential Properties Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Essential Properties's current stock value. Our valuation model uses many indicators to compare Essential Properties value to that of its competitors to determine the firm's financial worth. Essential Properties Realty is rated # 2 in return on equity category among its peers. It is one of the top stocks in profit margin category among its peers fabricating about 7.02 of Profit Margin per Return On Equity. At this time, Essential Properties' Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Essential Properties by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Essential Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Essential Properties |
| = | 0.0654 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Essential Properties |
| = | 0.46 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Essential Profit Margin Comparison
Essential Properties is currently under evaluation in profit margin category among its peers.
Essential Properties Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Essential Properties, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Essential Properties will eventually generate negative long term returns. The profitability progress is the general direction of Essential Properties' change in net profit over the period of time. It can combine multiple indicators of Essential Properties, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 4 M | 4.2 M | |
| Interest Income | 2 M | 3.1 M | |
| Operating Income | 242.8 M | 254.9 M | |
| Net Income From Continuing Ops | 191.4 M | 201 M | |
| Income Before Tax | 192.1 M | 201.7 M | |
| Total Other Income Expense Net | -50.7 M | -48.2 M | |
| Net Income Applicable To Common Shares | 154.2 M | 162 M | |
| Net Income | 191.4 M | 201 M | |
| Income Tax Expense | 636 K | 667.8 K | |
| Net Interest Income | -50.6 M | -53.1 M | |
| Non Operating Income Net Other | 618.3 K | 649.2 K | |
| Change To Netincome | -17.6 M | -16.7 M | |
| Net Income Per Share | 1.25 | 1.32 | |
| Income Quality | 1.33 | 2.40 | |
| Net Income Per E B T | 0.99 | 0.75 |
Essential Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Essential Properties. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Essential Properties position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Essential Properties' important profitability drivers and their relationship over time.
Use Essential Properties in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Essential Properties position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Essential Properties will appreciate offsetting losses from the drop in the long position's value.Essential Properties Pair Trading
Essential Properties Realty Pair Trading Analysis
The ability to find closely correlated positions to Essential Properties could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essential Properties when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Essential Properties - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Essential Properties Realty to buy it.
The correlation of Essential Properties is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Essential Properties moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essential Properties moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Essential Properties can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Essential Properties position
In addition to having Essential Properties in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Essential Stock Analysis
When running Essential Properties' price analysis, check to measure Essential Properties' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essential Properties is operating at the current time. Most of Essential Properties' value examination focuses on studying past and present price action to predict the probability of Essential Properties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Essential Properties' price. Additionally, you may evaluate how the addition of Essential Properties to your portfolios can decrease your overall portfolio volatility.