Eastgroup Properties (EGP) AI Stock Analysis

• Market Cap: $8.97B
• Dividend Yield: 3.33%
• Average Volume (3M): 383.20K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.68
• Revenue Growth: 11.22%
• EPS Growth: -3.16%
• Country: US
• Employees: 101
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.20
• Shares Outstanding: 53,334,393
• 10 Day Avg. Volume: 369,305
• 30 Day Avg. Volume: 383,197
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 15.17
• Enterprise Value/Gross Profit: 23.27
• Enterprise Value/Ebitda: 22.95
• 1Y Price Target: $186.33
• Price Target Upside: 10.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 70 Outperform
• Price Target: $180.00 ▲(7.03% Upside)

Eastgroup Properties shows strong financial performance and strategic investments, which are major strengths. However, technical indicators suggest potential bearish momentum, and the stock's valuation appears high. The earnings call provided a balanced view with both positive highlights and challenges.

Positive Factors

Credit Rating

Moody’s Ratings affirmed EastGroup’s issuer rating of Baa2 and changed its rating outlook from stable to positive, reflecting confidence in the company's financial health.

Financial Performance

EGP's operating portfolio is performing in line with or ahead of its expectations, showcasing positive financial performance.

Growth Opportunities

EastGroup Properties has raised its acquisition guidance to $160 million from $150 million, indicating potential growth opportunities.

Negative Factors

Development Challenges

EGP lowered its 2025 development starts guidance from $250M to $215M, indicating slower progress in development activities.

Leasing Activity

Development leasing remains slower as tenants are taking longer to make larger capital commitments, affecting the speed of leasing activity.

Occupancy Concerns

Investors may focus on the expected occupancy decline in the third quarter and the reduction in development starts guidance, which may suggest slower leasing activity on the development pipeline.

Eastgroup Properties Business Overview & Revenue Model

Company Description

Eastgroup Properties (EGP) is a real estate investment trust (REIT) that specializes in the development and management of industrial properties, primarily focused on the logistics sector. The company operates throughout the United States, with a significant presence in key markets such as the Sunbelt region. EGP's core services include the acquisition, development, and leasing of industrial properties, catering to tenants in need of high-quality distribution facilities.

How the Company Makes Money

Eastgroup Properties generates revenue primarily through rental income derived from leasing its industrial properties to a diverse range of tenants, including logistics firms and e-commerce companies. The company's revenue model is bolstered by long-term lease agreements, which provide stable cash flow. Additionally, EGP benefits from property appreciation and strategic acquisitions that enhance its portfolio value. The company may also engage in development projects that create new properties for lease, further expanding its revenue streams. Key partnerships with logistics and distribution companies help ensure a steady demand for its properties, while its focus on high-growth markets supports sustained occupancy rates and rental growth.

Eastgroup Properties Financial Statement Overview

Summary

Eastgroup Properties exhibits strong financial health with consistent revenue and profit growth, efficient operations, and a solid balance sheet. The company manages its leverage well and generates robust cash flows, positioning it favorably within the REIT - Industrial sector.

Income Statement

Eastgroup Properties has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.66%. The company maintains strong profitability metrics, with a TTM gross profit margin of 65.3% and a net profit margin of 34.85%. The EBIT and EBITDA margins are also robust at 39.57% and 69.69%, respectively, indicating efficient operations and cost management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.44, showing moderate leverage. The return on equity is 7.35%, which is reasonable for the industry. The equity ratio stands at 65.67%, indicating a solid equity base relative to total assets.

Cash Flow

Eastgroup Properties has shown strong cash flow performance, with a TTM free cash flow growth rate of 9.81%. The operating cash flow to net income ratio is 2.08, and the free cash flow to net income ratio is 1.0, reflecting efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	676.89M	638.53M	566.40M	487.02M	409.48M	363.02M
Gross Profit	441.23M	464.31M	412.37M	353.11M	294.40M	259.65M
EBITDA	447.33M	414.47M	370.42M	314.69M	260.74M	228.69M
Net Income	236.54M	227.75M	200.49M	186.18M	157.56M	108.36M
Balance Sheet
Total Assets	5.19B	5.08B	4.52B	4.04B	3.22B	2.72B
Cash, Cash Equivalents and Short-Term Investments	32.92M	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	1.78B	1.78B	1.91B	2.08B	1.64B	1.45B
Stockholders Equity	3.41B	3.29B	2.61B	1.95B	1.57B	1.27B
Cash Flow
Free Cash Flow	453.91M	416.59M	338.20M	275.65M	223.19M	163.15M
Operating Cash Flow	453.91M	416.59M	338.20M	316.50M	256.49M	196.28M
Investing Cash Flow	-661.26M	-724.34M	-570.06M	-521.15M	-529.26M	-288.26M
Financing Cash Flow	200.87M	285.02M	272.06M	200.31M	277.14M	91.77M

Eastgroup Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 168.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 168.17 is above the 20-day moving average (MA) of 165.39, above the 50-day MA of 165.62, and above the 200-day MA of 166.82, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 46.28 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
TRNO	76 Outperform	$6.10B	23.52	6.85%	3.32%	22.17%	40.80%
REXR	76 Outperform	$10.15B	31.90	3.74%	3.95%	13.66%	11.34%
FR	74 Outperform	$7.13B	25.55	10.33%	3.12%	9.66%	-4.60%
STAG	73 Outperform	$7.05B	29.25	6.89%	4.02%	8.56%	22.20%
EGP	70 Outperform	$8.97B	36.27	7.66%	3.33%	11.22%	-3.16%
LXP	69 Neutral	$2.71B	33.07	4.15%	5.87%	6.64%	210.89%
Sector *	63 Neutral	$7.09B	13.59	-0.39%	6.85%	4.08%	-25.24%

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.