Eastgroup Properties (EGP) AI Stock Analysis

• Market Cap: $8.92B
• Dividend Yield: 3.3%
• Average Volume (3M): 316.05K
• Price to Earnings (P/E): 37.1
• Beta (1Y): 0.69
• Revenue Growth: 11.92%
• EPS Growth: -0.83%
• Country: US
• Employees: 101
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Industrial
• EPS (TTM): 1.14
• Shares Outstanding: 52,515,950
• 10 Day Avg. Volume: 375,760
• 30 Day Avg. Volume: 316,052
• PEG Ratio: 0.80
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.88
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 18.72
• Enterprise Value/Ebitda: 4.44
• 1Y Price Target: $183.69
• Price Target Upside: 8.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 80 Outperform
• Price Target: $195.00 ▲(14.79%Upside)

Eastgroup Properties has a strong financial foundation with impressive revenue and profit margins, bolstered by a debt-free balance sheet. Technical indicators suggest stable performance, while valuation metrics indicate potential overvaluation. The earnings call reflects robust growth and strategic focus, though regional challenges and market uncertainties remain. Overall, the company is well-positioned for growth, but investors should be mindful of valuation and regional risks.

Positive Factors

Earnings

Moody’s Ratings affirmed EastGroup’s issuer rating of Baa2 and changed its rating outlook from stable to positive.

Financial Performance

EGP trades at a 5.9% implied cap rate, an 11% discount to NAV, presenting an opportunity to own a high-quality REIT.

Leasing Performance

EastGroup successfully released the entire space that Conn's rejected at a 20% higher rate.

Negative Factors

Development and Capital Deployment

Updated guidance indicates a push out in the timeline for capital deployment and a reduction in development starts.

Leasing Trends

Concerns include EGP's steep drop in leasing spreads in SoCal, and more modest development starts and capital raising.

Market Performance

EGP is down -7.4% in the past month, underperforming compared to the VNQ, which is down -3%.

Eastgroup Properties Business Overview & Revenue Model

Company Description

EastGroup Properties (EGP) is a publicly traded real estate investment trust (REIT) that specializes in the development, acquisition, and operation of industrial properties in major Sunbelt markets throughout the United States. The company focuses on providing state-of-the-art distribution facilities to a diverse range of tenants, primarily targeting the supply chain and logistics sectors. EastGroup Properties primarily serves businesses that require efficient warehousing and distribution solutions for their operations.

How the Company Makes Money

EastGroup Properties generates revenue primarily through the leasing of its industrial properties to a wide array of tenants in the logistics and supply chain sectors. The company's business model revolves around acquiring, developing, and managing strategically located industrial properties that are in high demand. Key revenue streams include rental income from long-term leases with tenants and property appreciation. The company also benefits from economies of scale and cost efficiencies gained by clustering properties in key markets, which enhances its ability to attract and retain tenants. Additionally, EastGroup Properties may engage in strategic partnerships and joint ventures to expand its portfolio and market reach, further contributing to its revenue generation.

Eastgroup Properties Financial Statement Overview

Summary

Eastgroup Properties demonstrates strong financial health with significant revenue growth, a robust balance sheet with no debt, and a solid cash flow position. The company's high equity ratio and impressive net profit margin further underscore its financial stability and efficiency.

Income Statement

Eastgroup Properties demonstrates strong revenue growth with a notable increase in total revenue from $487.0M in 2022 to $488.5M in TTM (Trailing-Twelve-Months), indicating a positive growth trend. The gross profit margin remains robust at 63.8% in TTM, coupled with an impressive EBITDA margin of 115.8%. However, the net profit margin improved significantly to 34.6% in TTM, showing effective cost management and profitability improvement.

Balance Sheet

The balance sheet is exceptionally strong, reflected by a debt-free position in TTM, which significantly reduces financial risk. The equity ratio stands at a healthy 65.5%, indicating a strong equity base. The return on equity is impressive at 5.1%, showcasing effective utilization of shareholder funds to generate profits.

Cash Flow

The cash flow position is solid with a high operating cash flow to net income ratio of 2.56 in TTM, suggesting strong cash generation relative to net income. Free cash flow also shows positive growth, increasing to $413.4M in TTM. However, fluctuations in cash flow from investing activities could suggest potential volatility in capital investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	661.11M	640.23M	570.59M	487.02M	409.48M	363.02M
Gross Profit	437.47M	466.02M	416.56M	353.11M	294.40M	259.65M
EBITDA	459.72M	444.62M	399.22M	337.41M	278.82M	245.53M
Net Income	228.53M	227.75M	200.49M	186.18M	123.78M	73.49M
Balance Sheet
Total Assets	5.11B	5.08B	4.52B	4.04B	3.22B	2.72B
Cash, Cash Equivalents and Short-Term Investments	20.52M	17.53M	40.26M	56.00K	4.39M	21.00K
Total Debt	1.49B	1.55B	1.70B	1.88B	1.48B	1.32B
Total Liabilities	1.76B	1.78B	1.91B	2.08B	1.64B	1.45B
Stockholders Equity	3.34B	3.29B	2.61B	1.95B	1.57B	1.27B
Cash Flow
Free Cash Flow	413.35M	416.59M	338.20M	275.65M	223.19M	163.15M
Operating Cash Flow	433.39M	416.59M	338.20M	316.50M	256.49M	196.28M
Investing Cash Flow	-677.22M	-724.34M	-570.06M	-521.15M	-529.26M	-288.26M
Financing Cash Flow	248.72M	285.02M	272.06M	200.31M	277.14M	91.77M

Eastgroup Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGP, the sentiment is Positive. The current price of 169.88 is above the 20-day moving average (MA) of 169.39, above the 50-day MA of 167.37, and above the 200-day MA of 169.04, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 51.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGP.

Eastgroup Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGP	80 Outperform	$8.92B	37.12	7.61%	3.30%	11.92%	-0.83%
STAG	77 Outperform	$6.98B	27.67	7.15%	4.07%	8.81%	33.30%
REXR	77 Outperform	$8.79B	30.16	3.35%	4.63%	18.02%	12.12%
FR	75 Outperform	$6.71B	24.39	10.18%	3.62%	9.18%	-7.05%
TRNO	67 Neutral	$5.91B	28.88	5.33%	3.43%	22.17%	4.34%
LXP	66 Neutral	$2.49B	42.97	2.98%	6.43%	5.68%	358.78%
Sector *	53 Neutral	$1.21B	3.28	-0.13%	7.06%	-1.64%	-127.47%

Eastgroup Properties Corporate Events

EastGroup Properties Confirms Board and Auditor Decisions

On May 22, 2025, EastGroup Properties, Inc. held its annual meeting of shareholders, where the election of seven directors to the Board was confirmed, KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and the compensation of the Company’s named executive officers was approved on a non-binding advisory basis. These decisions reflect the company’s commitment to maintaining strong governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (EGP) stock is a Hold with a $175.00 price target. To see the full list of analyst forecasts on Eastgroup Properties stock, see the EGP Stock Forecast page.