Eastgroup Properties (EGP) AI Stock Analysis

• Market Cap: $8.99B
• Dividend Yield: 3.19%
• Average Volume (3M): 315.67K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.76
• Revenue Growth: 11.92%
• EPS Growth: -0.83%
• Country: US
• Employees: 101
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Industrial
• EPS (TTM): 1.14
• Shares Outstanding: 52,515,950
• 10 Day Avg. Volume: 282,480
• 30 Day Avg. Volume: 315,670
• 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: 0.91
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 18.72
• Enterprise Value/Ebitda: 4.44
• 1Y Price Target: $183.38
• Price Target Upside: 5.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• Price Target: $193.00 ▲(11.10%Upside)

Eastgroup Properties holds a strong financial position with notable revenue growth, a debt-free balance sheet, and effective cash flow management. Its earnings call highlighted robust performance and strategic resilience despite some occupancy and market challenges. However, the stock's valuation is relatively high, and technical indicators suggest a neutral market outlook.

Positive Factors

Financial Performance

EGP increased 2025 FFO/sh guidance by a penny to $8.91/sh, indicating confidence in future earnings.

Investment Opportunities

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

Leasing Activity

Leasing remained strong with 2.6 msf signed during 1Q25, which is a 4% increase compared to the previous year.

Negative Factors

Development and Capital

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

Market Performance

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

Regional Leasing Concerns

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

Eastgroup Properties Business Overview & Revenue Model

Company Description

EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.

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
	EBIT
262.96M	255.21M	228.14M	183.77M	151.72M	129.17M
	EBITDA
459.72M	444.62M	399.22M	337.41M	278.82M	245.53M
	Net Income Common Stockholders
228.53M	227.75M	200.49M	186.18M	123.78M	73.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.00K	17.53M	40.26M	56.00K	4.39M	21.00K
	Total Assets
4.04B	5.08B	4.52B	4.04B	3.22B	2.72B
	Total Debt
1.88B	1.55B	1.70B	1.88B	1.48B	1.32B
	Net Debt
1.88B	1.53B	1.66B	1.88B	1.47B	1.32B
	Total Liabilities
2.08B	1.78B	1.91B	2.08B	1.64B	1.45B
	Stockholders Equity
1.95B	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: 173.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 173.71 is above the 20-day moving average (MA) of 169.77, above the 50-day MA of 165.40, and above the 200-day MA of 171.32, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 86.54 is Negative, 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	79 Outperform	$8.99B	37.40	7.61%	3.19%	11.92%	-0.83%
STAG	77 Outperform	$6.87B	27.81	7.15%	4.00%	8.81%	33.30%
TRNO	76 Outperform	$6.10B	29.83	5.33%	3.25%	22.17%	4.34%
REXR	74 Outperform	$8.53B	29.27	3.35%	4.60%	18.02%	12.12%
FR	73 Outperform	$6.76B	24.58	10.18%	3.12%	9.18%	-7.05%
LXP	68 Neutral	$2.57B	44.40	2.98%	6.06%	5.68%	358.78%
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%

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.