Essex Property Trust Inc
Exchange: NYSESector: Real EstateIndustry: REIT - Residential
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 257 apartment communities comprising over 62,000 apartment homes with an additional property in active development.
Did you know?
Carries 80.1x more debt than cash on its balance sheet.
Current Price
$255.06
+1.14%GoodMoat Value
$232.50
8.8% overvaluedProfile
Valuation (TTM)
Market Cap$16.43B
P/E24.53
EV$22.39B
P/B2.96
Shares Out64.40M
P/Sales8.70
Revenue$1.89B
EV/EBITDA15.10
Essex Property Trust Inc (ESS) Stock Analysis
GoodMoat Analysis
Essex Property Trust is a high-quality residential REIT with a durable, regionally-focused moat, but it is trading at a marginal valuation with a negative free cash flow yield. The business passes the initial quality gate but requires a high-conviction view on growth to justify the current price.
Read full analysis
Essex Property Trust (ESS) is a residential real estate investment trust (REIT) focused on owning, operating, and developing apartment communities in high-barrier-to-entry coastal markets, primarily in Southern California and the Seattle metro area. Applying the GoodMoat framework, the company demonstrates a clear competitive moat, likely scoring well on criteria like niche dominance in its target markets, strategic partnerships for development, and the scale privilege of owning a concentrated, high-demand portfolio. Its financial quality is strong, with a robust operating margin of 31.8%, a healthy ROE of 12.1%, and a solid dividend yield of 4.19%, though the negative free cash flow yield of -0.3% is a point for investigation typical for REITs in growth phases.
According to the Decision Framework, ESS passes Step 1 (The Moat & Quality Gate) as a business with a durable advantage and adequate-to-strong financials. However, the valuation assessment places it in the 'with caution' category. The GoodMoat Target price of $232.50 suggests the current price of $242.14 offers a marginal or negative margin of safety. Key metrics like a P/E of 23.3x and modest revenue growth of 3.2% YoY indicate the stock is priced for perfection. For a value investor, this presents a high-quality business but not an obviously attractive price. It is worth investigating further to understand the drivers behind the negative FCF and to model whether future rent growth and development can justify the premium multiple.
Analysis based on data as of 2024-05-15.
Market Cap$16.43B
Current Price$255.06
P/E Ratio24.53
Forward P/E—
PEG Ratio-0.36
EPS$10.40
Book Value$86.04
P/B Ratio2.96
ESS Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 6.8B
Revenue
1.5B
FY19
1.5B
FY20
1.4B
FY21
1.6B
FY22
1.7B
FY23
1.8B
FY24
1.9B
FY25
Net Income
439M
FY19
569M
FY20
489M
FY21
408M
FY22
406M
FY23
742M
FY24
670M
FY25
ESS 52-Week Range
$237.07
$283.89
50-Day MA: $249.40200-Day MA: $254.37
Did you know?
Profit margin of 35.5% — that's well above average.
Essex Property Trust Inc (ESS) Financial Summary
Essex Property Trust Inc (ESS) is a Real Estate company in the REIT - Residential industry, listed on NYSE. The stock currently trades at $255.06 with a market capitalization of $16.43B.
Key valuation metrics include a P/E ratio of 24.53, price-to-book ratio of 2.96, and EPS of $10.40. The company reports a profit margin of 35.5% and return on equity of 12.1%.
ESS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $16.43B |
| P/E Ratio | 24.53 |
| EPS | $10.40 |
| P/B Ratio | 2.96 |
| P/S Ratio | 8.70 |
| EV/EBITDA | 15.10 |
| Dividend Yield | 3.98% |
| Profit Margin | 35.5% |
| Return on Equity | 12.1% |
| Debt/Equity | 1.24 |
ESS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $1.46B | $439.29M |
| FY20 | $1.50B | $568.87M |
| FY21 | $1.44B | $488.55M |
| FY22 | $1.61B | $408.31M |
| FY23 | $1.67B | $405.82M |
| FY24 | $1.77B | $741.52M |
| FY25 | $1.89B | $669.67M |
Essex Property Trust Inc (ESS) Valuation
Based on GoodMoat's DCF model, Essex Property Trust Inc has a fair value estimate of $232.50. At the current price of $255.06, the stock appears 9.7% overvalued relative to our intrinsic value estimate.
ESS Quality Indicators
Essex Property Trust Inc maintains a profit margin of 35.5% and an operating margin of 31.8%. Return on equity stands at 12.1%. Debt-to-equity ratio is 1.24.
About Essex Property Trust Inc
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 257 apartment communities comprising over 62,000 apartment homes with an additional property in active development.
ESS Free Cash Flow
Essex Property Trust Inc generated $-41.08M in trailing twelve-month free cash flow, representing an FCF yield of -0.25%. This low FCF yield may reflect heavy reinvestment or growth spending.
ESS Shares Outstanding
Essex Property Trust Inc has 0.06 billion shares outstanding at a share price of $255.06, giving it a market capitalization of $16.43B.