Camden Property (CPT) AI Stock Analysis

• Market Cap: $15.17B
• Dividend Yield: 3.88%
• Average Volume (3M): 875.46K
• Price to Earnings (P/E): 74.8
• Beta (1Y): 0.68
• Revenue Growth: 0.76%
• EPS Growth: -60.70%
• Country: US
• Employees: 1,660
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.74
• Shares Outstanding: 106,852,730
• 10 Day Avg. Volume: 880,760
• 30 Day Avg. Volume: 875,455
• PEG Ratio: -1.29
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 8.15
• P/FCF Ratio: 33.03
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 10.37
• Enterprise Value/Gross Profit: 16.95
• Enterprise Value/Ebitda: 18.12
• 1Y Price Target: $121.43
• Price Target Upside: 14.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 67 Neutral
• Price Target: $119.00 ▲(12.21% Upside)

Camden Property's overall score reflects strong earnings call insights and financial performance, tempered by technical analysis and valuation concerns. The company's robust demand and strategic positioning are positive, but high P/E ratio and market challenges in specific areas like Austin and Nashville pose risks.

Positive Factors

Strong Revenue Growth

The robust revenue growth indicates Camden Property's effective market positioning and ability to capitalize on demand, supporting long-term financial health.

Balance Sheet Strength

A strong balance sheet with manageable debt levels enhances financial stability and flexibility, allowing Camden Property to invest in growth opportunities.

High Resident Satisfaction

High resident satisfaction leads to better tenant retention and reduced vacancy rates, supporting stable rental income and long-term business success.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests challenges in cost management or increased expenses, potentially impacting future profitability and cash flow.

Supply Challenges in Key Markets

Oversupply in key markets can pressure rental rates and occupancy, impacting revenue growth and competitive advantage in those regions.

Declining Free Cash Flow Growth

Reduced free cash flow growth limits Camden Property's ability to reinvest in new projects or manage debt, potentially hindering long-term expansion plans.

Camden Property Business Overview & Revenue Model

Company Description

Camden Property Trust, an S&P 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 167 properties containing 56,850 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company's portfolio will increase to 59,104 apartment homes in 174 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 13 consecutive years, most recently ranking #18. The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.

How the Company Makes Money

Camden Property generates revenue primarily through rental income from its portfolio of apartment communities. The company leases residential units to tenants, and the rental income constitutes the bulk of its revenue. Additionally, CPT earns income from property management services, which may include managing properties for third-party owners. The company is also involved in property development, which can lead to increased revenue streams as new properties are built and leased. Significant factors contributing to Camden's earnings include its strategic focus on high-growth markets, a diversified portfolio of properties, and effective management of operational costs. Partnerships with various stakeholders, including local governments and housing authorities, may also enhance its ability to develop and manage properties successfully.

Camden Property Financial Statement Overview

Summary

Camden Property demonstrates strong financial performance with consistent revenue growth and efficient operations. However, declining net profit margins and return on equity indicate challenges in profitability. Strong cash flow generation provides a cushion for reinvestment and debt servicing, but high capital expenditures may constrain free cash flow improvements.

Income Statement

Camden Property has demonstrated consistent revenue growth with a notable increase of approximately 8.85% from 2021 to 2022, stabilizing in recent years. The gross profit margin remains healthy at around 61.25% for TTM, indicating efficient cost management. However, net profit margin has shown volatility, dropping to 7.62% in TTM from a high of 28.73% in 2022, which is concerning. EBITDA margin is strong at 54.53% for TTM, suggesting solid operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with an equity ratio of 51.31% for TTM, indicating a balanced asset structure. The debt-to-equity ratio stands at 0.81, reflecting moderate leverage. However, there is a consistent increase in total debt over the years. Return on equity has decreased to 2.56% in TTM, down from 13.10% in 2022, indicating pressure on profitability.

Cash Flow

Camden Property has shown robust free cash flow growth, with a 9.36% increase from 2022 to 2023, despite a decrease in net income. The operating cash flow to net income ratio is strong at 6.66 for TTM, suggesting effective cash generation from operations. However, capital expenditures remain high, impacting free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.54B	1.54B	1.42B	1.14B	1.04B
Gross Profit	954.88M	944.51M	957.68M	893.56M	695.71M	620.86M
EBITDA	893.28M	885.60M	1.12B	840.05M	832.26M	589.24M
Net Income	155.98M	163.29M	403.31M	653.61M	303.91M	123.91M
Balance Sheet
Total Assets	9.12B	8.85B	9.38B	9.33B	7.98B	7.20B
Cash, Cash Equivalents and Short-Term Investments	33.09M	21.05M	259.69M	10.69M	613.39M	420.44M
Total Debt	3.83B	3.49B	3.72B	3.68B	3.17B	3.17B
Total Liabilities	4.46B	4.10B	4.33B	4.27B	3.71B	3.68B
Stockholders Equity	4.59B	4.68B	4.98B	4.99B	4.20B	3.44B
Cash Flow
Free Cash Flow	414.32M	381.14M	384.02M	295.28M	148.75M	92.07M
Operating Cash Flow	792.80M	774.88M	794.95M	744.71M	577.47M	519.32M
Investing Cash Flow	-658.21M	-285.23M	-127.13M	-1.46B	-804.39M	-429.60M
Financing Cash Flow	-191.94M	-725.49M	-417.21M	109.93M	421.37M	307.32M

Camden Property Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPT, the sentiment is Negative. The current price of 106.05 is below the 20-day moving average (MA) of 109.04, below the 50-day MA of 109.30, and below the 200-day MA of 113.45, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 21.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPT.

Camden Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAA	75 Outperform	16.85B	28.93	9.67%	4.34%	1.19%	10.52%
AVB	73 Outperform	27.45B	23.71	9.71%	3.60%	6.44%	37.67%
ESS	69 Neutral	17.64B	21.27	14.20%	3.81%	7.56%	54.15%
EQR	68 Neutral	24.88B	24.93	9.19%	4.32%	4.49%	5.87%
UDR	68 Neutral	12.28B	96.69	3.97%	4.66%	2.29%	-4.89%
CPT	67 Neutral	$15.17B	74.81	3.30%	3.88%	0.76%	-60.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%