EastGroup Properties Valuation Analysis
| EGP Stock | USD 205.32 1.43 0.70% |
Below Model Estimate
Today
The intrinsic value estimate for EastGroup Properties is based on a 3 months horizon. A high P/E ratio indicates strong growth expectations already embedded in pricing. Extending the time horizon generally improves valuation stability.
EastGroup Properties's valuation depends on its margin structure, capital intensity, and cash-flow profile — each method captures a different dimension. Market multiples show how similar companies are currently priced relative to EastGroup Properties.
Main Profitability Drivers
EastGroup Properties reports a net profit margin of 35.00% alongside an operating margin of 75.00%. A 40.00-point margin gap suggests that below-the-line items meaningfully affect EastGroup Properties' net profitability. EastGroup Properties' revenue base of $721.34 million yielded $539.37 million in gross profit at a 74.8% gross margin, while net income came in at $257.4 million. EastGroup Properties' return on equity of 10.00% and return on assets of 5.67% gauge how effectively the company converts invested capital into earnings. Across the profitability spectrum, EastGroup Properties is demonstrating constructive momentum in its margin and return metrics. The full picture is available through EastGroup Properties' complete profitability review to assess how these metrics compare over time.
Price Book 3.01 | Gross Profit | Price Sales 15.01 | Profit Margin | Enterprise Value Revenue 16.81 |
EastGroup Properties Cash | $956,649 |
Cash stood at $1.01 million as of December 31, 2025.
EastGroup Properties operates as a real estate investment trust generating revenue through rental income and property portfolio performance. Positioned as a growth-oriented stock within Diversified REITs, its valuation multiples reflect expectations for forward earnings expansion. Enterprise value, leverage, and operating performance are compared below to identify where current pricing aligns with fundamentals and where it diverges.
Total Value Analysis
EastGroup Properties currently shows enterprise value of 12.39 billion, market capitalization of 11.04 billion, debt of 1.75 billion, and cash and equivalents of 45.98 million as of latest reporting. Enterprise value captures what an acquirer would pay for the operating business, making it more useful than market cap alone when debt is material.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
12.39 billion | 11.04 billion | 1.75 billion | 45.98 million |
Investor Information
About 99.0% of EGP shares are held by institutions such as insurance companies. The book value of EGP was currently reported as 66.64. EGP reported earnings per share (EPS) of 5.51. EastGroup Properties had its last dividend issued on the 31st of March 2026. EGP completed a 1.500-for-1 stock split on 8th of April 1997. EastGroup Properties operates at significant scale, but margin compression and elevated leverage point to moderate financial flexibility with thin profitability. Return on assets remains in positive territory, consistent with the company's business model and scale.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 75.00% | 39.87% |
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| Total Cash From Operating Activities | $504.77 million | $480.73 million |
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| Operating Income | $301.94 million | $287.56 million |
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Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. EastGroup Properties has an asset utilization ratio of 13.28 percent. This connotes that the Company is making $0.13 for each dollar of assets. An increasing asset utilization means that EastGroup Properties is more efficient with each dollar of assets it utilizes for everyday operations.Macro event markers
Discounted Cash Flow Analysis
EastGroup Properties's custom levered DCF points to 208.43 per share versus 205.32 in the market, implying upside to the modeled value. That leaves the shares trading about 1.5% below this model output. The model discounts levered cash flows at 8.37% and assumes terminal growth of 4.0%, while forward free cash flow is near 696.10 Million. Even with about 2.22 Billion of discounted forecast cash flow in the model, nearly 82.8% of enterprise value comes from the terminal value. Terminal value driving 82.8% of the total means the output is heavily influenced by perpetual growth and discount rate assumptions beyond the explicit forecast horizon.Model Value / Share
208.43
Equity value per share from the current custom levered DCF summary row.
Market Price
205.32
Current market price used by the same scenario.
Model Upside
1.5%
Market price sits below the model output.
WACC / LT Growth
8.37% / 4.0%
Forecast horizon: 2021 to 2030Terminal value share of EV: 82.8%
EastGroup Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 8.37% |
| Long-Term Growth Rate | 4.0% |
| Cost of Equity | 9.07% |
| After-Tax Cost of Debt | 4.02% |
| Debt Weighting | 13.78% |
| Equity Weighting | 86.22% |
| Net Debt | 1.75 billion |
| Enterprise Value | 12.88 billion |
| Present Terminal Value | 10.66 billion |
| Terminal Value Share of EV | 82.8% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 409.48 million | 0.00% | 219.83 million | 0 | 208.43 |
| 2022 | 487.02 million | 18.94% | 275.65 million | 0 | 208.43 |
| 2023 | 566.4 million | 16.30% | 287.09 million | 0 | 208.43 |
| 2024 | 638.53 million | 12.73% | 357.3 million | 0 | 208.43 |
| 2025 | 721.34 million | 12.97% | 404.9 million | 0 | 208.43 |
| 2026 | 802.8 million | 11.29% | 467.1 million | 431.03 million | 208.43 |
| 2027 | 881.76 million | 9.84% | 519.69 million | 442.51 million | 208.43 |
| 2028 | 957.29 million | 8.57% | 571.26 million | 448.85 million | 208.43 |
| 2029 | 1.03 billion | 7.46% | 621.27 million | 450.44 million | 208.43 |
| 2030 | 1.1 billion | 6.50% | 669.33 million | 447.8 million | 208.43 |
Profitability Analysis
Based on EastGroup Properties' financial statements, EastGroup Properties maintains a strong margin profile with a net profit margin of 35.0% and an operating margin of 75.0%, producing net income of 257.4 million. Return on equity is 10.0%. Profitability trends are broadly favorable, with a majority of key metrics improving year over year.Net Income | First Reported 1985-06-30 | Previous Quarter 67.75 million | Current Value 94.62 million | Quarterly Volatility 18.17 million |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 77.00% | 43.30% |
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| Net Profit Margin | 35.00% | 35.69% |
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| Operating Profit Margin | 75.00% | 39.87% |
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| Pretax Profit Margin | 45.00% | 35.69% |
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| Return On Assets | 5.67% | 4.74% |
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| Return On Equity | 10.00% | 7.36% |
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EastGroup Properties profitability is assessed through margins, return on equity, and asset efficiency. Net margin of 35.0% reflects solid earnings conversion and cost discipline relative to revenue. The data below separates structural profitability from one-time items and cyclical effects. EastGroup Properties reports return on equity of 10.0%, positive but not at levels that signal strong capital efficiency.
Earnings per Share Projection vs Actual
EastGroup Properties earnings estimates reflect the collective view of covering analysts, with revisions signaling changing fundamentals. Consensus places EastGroup Properties' next EPS at 1.29, with a 1.15 to 1.33 dispersion range. The EPS consensus for EastGroup Properties reflects normalized analyst expectations. Comparing this estimate against the current net margin profile (35.0%), guidance revisions, and prior forecast error reveals whether the market is pricing in improvement, stability, or deterioration. EastGroup Properties reported estimated earnings of 1.2905 in earnings per share on 30th of June 2026. When actual results deviate from this estimate, the gap typically signals whether earnings momentum is accelerating or fading.Macro event markers
Earnings Estimation Breakdown
19 analysts contribute to the current consensus. The last reported EPS was 1.30 as of 31st of March 2026.
Last Reported EPS
1.15
Lowest
1.29
Expected EPS
1.33
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 19 | 92.59% | 1.30 | 1.29 | 5.51 |
Ownership Allocation
The majority of EastGroup Properties' outstanding shares are owned by institutional investors. High institutional ownership often reflects the stock's eligibility for passive index funds, which are required to hold positions proportional to index weights regardless of their own investment view. Active managers holding EastGroup Properties must also disclose positions above certain thresholds through SEC filings.Revenue and Profit Overview
EGP reported last year's revenue of $721.34 million. Total Income to common stockholders was $257.4 million with profit before taxes, overhead, and interest of $539.37 million.Past Distributions to Stockholders
Dividend history associated with this Stock can offer signals about financial resilience and payout sustainability. Comparing dividend payments with historical earnings trends can provide useful context. Income-focused investors may want to analyze dividend distributions.
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| 15th of July 2024 |
What the Data Shows
At 55.02 times earnings, the market is pricing EastGroup Properties for meaningful forward growth - a bet that carries both opportunity and risk if results fall short. In this context, the valuation reflects operating economics rather than a generalized growth or value signal. EastGroup Properties retains 35.0% of revenue as profit, a level that provides meaningful downside protection relative to most peers in Diversified REITs. Margins at this level are characteristic of the sector and consistent with the operating model. The 0.86 debt-to-equity ratio is moderate; for a business built on its occupancy-driven rental income model, returns stem from operating scale rather than financial leverage. EastGroup Properties earns 10.0% on equity - positive but moderate, indicating productive capital deployment without the kind of returns that signal strong competitive advantages. EastGroup Properties behaves differently from pure growth names - its income characteristics and stable margin profile historically reduce portfolio-level volatility. Current pricing embeds an expectation of sustained above-average earnings growth. A shift in rental income stability, occupancy trends, and the sustainability of distributions would alter the balance between what the market has priced in and what ultimately materializes.
Big Picture Assessment
EastGroup Properties fits the profile of a high-margin business where returns flow from the underlying operating model and scale advantages, not financial leverage and defensive income characteristics, a positioning that shapes how real estate investment trusts are valued. Profitability is positive and capital returns adequate - the business generates reasonable value from its asset base under current conditions. Across the key dimensions, EastGroup Properties earns its valuation - the forward catalyst for re-rating in either direction is rental income stability, occupancy trends, and the sustainability of distributions.
Valuation Framework, Methodology & Assumptions
EastGroup Properties is a large-cap equity in Diversified REITs, Equity Real Estate Investment Trusts (REITs), Real Estate categories. Intrinsic value assumptions are benchmarked against sector averages. Current valuation multiples for EastGroup Properties include P/S of 15.01, enterprise value (TTM) of 12.39 billion, P/E of 55.02.
Reported values for EastGroup Properties are derived from periodic company reporting and market reference feeds and standardized for analysis. Analyst inputs may be included when coverage is available. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Rifka Kats, Member of Macroaxis Editorial Board
Growth Indicators
When investors treat EastGroup Properties as a growth opportunity, they are usually paying for future execution rather than only for current fundamentals. This framework is applicable when the question is whether the company can grow efficiently rather than simply grow quickly.
| Common Stock Shares Outstanding | 53.38 million | |
| Quarterly Earnings Growth Y O Y | 55.30% | |
| Forward Price Earnings | 42.0168 |
EastGroup Properties Current Valuation Indicators
The intrinsic value of EastGroup Properties is estimated using multiple approaches, including discounted cash flow analysis, relative valuation multiples, and balance sheet-based methods, each reflecting different assumptions about earnings durability, capital structure, and future cash generation. Earnings multiples, cash-flow yields, and asset-based measures work best as a group rather than in isolation. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.