Epr Properties (NYSE: EPR)

Sector: Real Estate Industry: REIT - Specialty CIK: 0001045450
Market Cap 4.44 Bn
P/B 1.91
P/E 25.30
P/S 6.23
ROIC (Qtr) 6.13
Div Yield % 6.49
Rev 1y % (Qtr) 1.00
Total Debt (Qtr) 2.97 Bn
Debt/Equity (Qtr) 1.28
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About

EPR Properties, a Maryland-based real estate investment trust (REIT), is a significant player in the experiential real estate sector, with a particular focus on entertainment, education, and gaming. Since its inception in 1997, EPR Properties has established itself as a leading net lease investor in experiential real estate. EPR Properties' primary business activities revolve around experiential property investments, which encompass a wide range of facilities such as movie theaters, eat & play properties, attractions, ski resorts, experiential...

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Investment thesis

Bull case

  • Operating cash flow of 416.11M provides strong 25.84x coverage of stock compensation 16.11M, indicating sustainable incentive practices.
  • Strong operating cash flow of 416.11M provides 7.78x coverage of SG&A expenses 53.49M, showing efficient operational cost management.
  • Strong free cash flow of 433.29M provides 8.10x coverage of SG&A expenses 53.49M, indicating efficient cost management.
  • Free cash flow of 433.29M provides solid 1.60x coverage of operating expenses 270.21M, showing operational efficiency.
  • Operating cash flow of 416.11M exceeds receivables of 92.29M by 4.51x, demonstrating excellent collection efficiency.

Bear case

  • Operating cash flow of 416.11M barely covers its investment activities of (37.22M), with a coverage ratio of -11.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 416.11M provides thin coverage of dividend payments of (288.09M) with a -1.44 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 29.69M provide limited coverage of acquisition spending of (2.54M), which is -11.71x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 433.29M provides weak coverage of capital expenditures of (17.18M), with a -25.22 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 334.81M show weak coverage of depreciation charges of 166.57M, with a 2.01 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the REIT - Specialty
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EQIX Equinix Inc 93.20 Bn 69.03 10.11 22.73 Bn
2 AMT American Tower Corp /Ma/ 84.92 Bn 69.21 11.41 45.01 Bn
3 DLR Digital Realty Trust, Inc. 61.15 Bn 48.23 10.00 19.66 Bn
4 CCI Crown Castle Inc. 37.84 Bn 64.24 6.91 29.58 Bn
5 IRM Iron Mountain Inc 32.10 Bn 222.02 4.65 18.73 Bn
6 SBAC Sba Communications Corp 25.39 Bn 332.98 15.54 15.02 Bn
7 WY Weyerhaeuser Co 19.35 Bn 59.73 2.80 5.57 Bn
8 LAMR Lamar Advertising Co/New 12.52 Bn 427.65 10.32 4.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.34 1.49
EV to Cash from Ops. EV/CFO 17.83 23.58
EV to Debt EV to Debt 2.50 2.74
EV to EBIT EV/EBIT 22.17 32.67
EV to EBITDA EV/EBITDA 14.96 18.09
EV to Free Cash Flow [EV/FCF] EV/FCF 17.13 66.87
EV to Market Cap EV to Market Cap 1.67 2.19
EV to Revenue EV/Rev 10.41 9.81
Price to Book Value [P/B] P/B 1.91 0.95
Price to Earnings [P/E] P/E 25.30 70.17
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.56 3.96
Dividend Payout Ratio % Div Payout % (Qtr) 151.70 112.65
Dividend per Basic Share Div per Share (Qtr) 3.51 3.59
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 61.58 187.43
Interest Coverage Int. cover (Qtr) 2.52 4.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 121.60 12.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.52 105.31
Dividend Growth (1y) % Div 1y % (Qtr) 3.70 27.11
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1.35 44.10
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.05 -3.90
EBIT Growth (1y) % EBIT 1y % (Qtr) 1.73 45.16
EBT Growth (1y) % EBT 1y % (Qtr) 0.20 209.40
EPS Growth (1y) % EPS 1y % (Qtr) -1.28 198.65
FCF Growth (1y) % FCF 1y % (Qtr) 45.57 -130.11
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.00 5.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.13 0.20
Cash Payout Ratio Cash Payout (Qtr) 0.77 0.17
Cash Ratio Cash Ratio 0.00 0.30
Current Ratio Current Ratio 0.00 0.62
Debt to Equity Ratio Debt/Equity (Qtr) 1.28 1.20
Interest Cover Ratio Int Coverage (Qtr) 2.52 4.10
Times Interest Earned Times Interest Earned (Qtr) 2.52 4.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 70.40 59.74
EBIT Margin % EBIT Margin % (Qtr) 46.98 40.99
EBT Margin % EBT Margin % (Qtr) 28.32 18.94
Gross Margin % Gross Margin % (Qtr) 91.70 65.41
Net Profit Margin % Net Margin % (Qtr) 24.60 14.71