Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $5.77B
• Dividend Yield: 4.11%
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.73
• Revenue Growth: 24.84%
• EPS Growth: -6.90%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 86
• Industry: REIT - Diversified
• EPS (TTM): 1.15
• Shares Outstanding: 195,980,320
• 10 Day Avg. Volume: 2,241,480
• 30 Day Avg. Volume: 2,235,734
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 13.25
• Price to Cash Flow (P/CF): 17.10
• P/FCF Ratio: 17.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.70
• Price Target Upside: 21.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Essential Properties Realty scores well due to its strong financial health, characterized by consistent revenue growth, high profit margins, and a debt-free balance sheet. The positive sentiment from the earnings call, supported by strong investment activity and a robust outlook, further enhances its profile. However, the high P/E ratio and technical indicators suggest caution due to potential short-term market pressures.

Positive Factors

Acquisitions

EPRT acquired 57 properties for $308M/8.1% cap rate with strong rent coverage and higher escalators, which supports its growth profile.

Earnings

EPRT's FY25e AFFO/sh guidance implies +7.5% growth at the midpoint, the highest among peers and nearly 2x REIT sector average.

Financial Performance

EPRT shares are up 38% YTD, outperforming the Triple Net subsector/RMZ by 2,200bps/2,100bps, driven by sector-leading investment spreads and robust, visible and pre-funded earnings growth.

Negative Factors

Credit Risk

Car washes are in the headlines with Zips's recent bankruptcy filing, and EPRT has exposure to 3 assets leased to Zips.

Market Conditions

EPRT’s per-share growth outlook is highly correlated to interest rate and capital market conditions, adding uncertainty.

Valuation

The REIT's valuation is considered high, and its operations are trending closer to average, making further outperformance unlikely.

Essential Properties Realty Business Overview & Revenue Model

Company Description

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.

How the Company Makes Money

Essential Properties Realty generates revenue primarily through leasing its portfolio of properties to tenants under long-term net lease agreements. These leases provide stable and predictable rental income, which forms the bulk of the company's earnings. Additionally, EPRT benefits from property acquisitions funded through various means, including equity offerings and debt financing, which further expand its real estate portfolio and enhance income potential. The company's focus on service-oriented and experience-based tenants aims to ensure resilience against economic volatility, as these sectors typically exhibit strong demand irrespective of economic cycles.

Essential Properties Realty Financial Statement Overview

Summary

Essential Properties Realty exhibits a robust financial profile with strong income growth, a solid balance sheet, and healthy cash flow metrics. The company has demonstrated consistent revenue growth, high profit margins, and a debt-free status, enhancing its financial stability and growth potential.

Income Statement

Essential Properties Realty has shown strong income statement metrics with consistent revenue growth from 2019 to 2024. The gross profit margin remains exceptionally high at approximately 98%, indicating efficient cost management. The company exhibits a robust net profit margin of 45.1% in 2024, a significant improvement from 30.3% in 2020. Revenue growth has been consistent, with a notable increase of 25% from 2023 to 2024. The EBIT and EBITDA margins are strong, reflecting solid operational efficiency. Overall, the company demonstrates excellent profitability and growth trends.

Balance Sheet

The balance sheet of Essential Properties Realty is impressive, with a debt-free status in 2024, indicating financial prudence and stability. The equity ratio of 61.5% in 2024 suggests a strong equity base, enhancing financial flexibility. Return on Equity (ROE) is healthy, with a notable increase to 5.7% in 2024 from 2.7% in 2020. The company has effectively managed its leverage, transitioning from a debt-dependant structure in earlier years to a robust equity position. This financial structure minimizes risk and supports sustainable growth.

Cash Flow

Essential Properties Realty shows positive cash flow metrics with consistent operating cash flow growth. The free cash flow has improved significantly over the years, reaching $308 million in 2024. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to net income. The absence of capital expenditures contributes to the strong free cash flow position. Despite large investing cash outflows, the company maintains a solid cash flow profile, supporting its operational and financial activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
449.61M	359.60M	286.51M	230.23M	164.01M
	Gross Profit
444.61M	351.38M	283.05M	224.47M	160.13M
	EBIT
278.19M	242.75M	175.42M	134.42M	72.83M
	EBITDA
404.97M	352.05M	279.50M	199.95M	135.34M
	Net Income Common Stockholders
203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.71M	39.81M	62.34M	59.76M	26.60M
	Total Assets
5.80B	4.77B	4.00B	3.30B	2.49B
	Total Debt
2.13B	1.69B	1.42B	1.17B	815.28M
	Net Debt
2.09B	1.65B	1.36B	1.11B	788.68M
	Total Liabilities
2.23B	1.78B	1.50B	1.25B	906.85M
	Stockholders Equity
3.56B	2.98B	2.49B	2.04B	1.57B
Cash Flow		Free Cash Flow
308.48M	254.57M	-517.71M	167.39M	99.39M
	Operating Cash Flow
308.48M	254.57M	211.02M	167.39M	99.39M
	Investing Cash Flow
-1.12B	-857.13M	-706.08M	-829.68M	-545.51M
	Financing Cash Flow
810.70M	580.01M	506.80M	689.06M	457.79M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPRT, the sentiment is Negative. The current price of 28.45 is below the 20-day moving average (MA) of 31.47, below the 50-day MA of 31.50, and below the 200-day MA of 31.10, indicating a bearish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPRT.

Essential Properties Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPRT	75 Outperform	$5.77B	25.58	6.21%	4.11%	24.84%	-6.90%
BNL	74 Outperform	$2.89B	17.82	5.37%	7.58%	-2.08%	3.63%
WPC	72 Outperform	$12.47B	27.26	5.38%	6.26%	-9.09%	-36.58%
UE	70 Outperform	$2.24B	28.32	5.97%	4.14%	6.73%	-71.83%
OLP	70 Outperform	$519.60M	17.14	9.80%	7.72%	-0.09%	1.93%
Sector *	61 Neutral	$4.31B	16.14	-3.60%	11.88%	6.17%	-20.99%
GNL	60 Neutral	$1.65B	―	-5.48%	16.13%	56.29%	55.99%

Essential Properties Realty Corporate Events

Essential Properties Realty Releases Financial Presentation

On April 8, 2025, Essential Properties Realty Trust, Inc. released an investor presentation detailing its financial and operational performance. The company reported a stable and diversified portfolio with a high occupancy rate and strong lease coverage. In the first quarter of 2025, the company raised approximately $309 million in common equity and expanded its revolving credit facility to $1 billion. The company continues to focus on disciplined external growth and capital recycling, with significant investments and dispositions completed in 2025. The presentation highlights Essential Properties’ strategic focus on maintaining a low leverage ratio, robust liquidity, and a conservative payout ratio, ensuring sustainable growth and financial stability.

Spark’s Take on EPRT Stock

According to Spark, TipRanks’ AI Analyst, EPRT is a Outperform.

Essential Properties Realty scores well due to its strong financial health, characterized by consistent revenue growth, high profit margins, and a debt-free balance sheet. The positive sentiment from the earnings call, supported by strong investment activity and a robust outlook, further enhances its profile. However, the high P/E ratio and technical indicators suggest caution due to potential short-term market pressures. Overall, the company’s solid financial foundation and growth prospects position it favorably, but valuation and technical signals warrant attention.

To see Spark’s full report on EPRT stock, click here.

Essential Properties Realty Appoints New Executive Vice Presidents

On March 24, 2025, Essential Properties Realty Trust, Inc. entered into employment agreements with R. Max Jenkins and A Joseph Peil, both serving as Executive Vice Presidents, effective immediately. The agreements, lasting initially until 2028, include provisions for base salaries, performance bonuses, and long-term incentives. They also outline conditions for termination benefits, including compensation and healthcare coverage, and impose restrictive covenants post-termination.

Essential Properties Realty Highlights Strong Financial Position

On March 3, 2025, Essential Properties Realty Trust, Inc. released an investor presentation detailing its financial and operational performance as of the end of 2024 and early 2025. The company reported a stable portfolio with a 99.7% lease rate and highlighted its strong balance sheet, including a $1.0 billion revolving credit facility. Essential Properties has maintained low leverage and excellent liquidity, with significant investments and capital recycling activities in early 2025. The company’s strategic focus on disciplined growth and risk management positions it well in the real estate market, with a continued emphasis on e-commerce resilient sectors.

Essential Properties Realty Updates 2025 AFFO Guidance

Essential Properties Realty Trust reported its fourth quarter and full-year 2024 financial results, revealing a robust investment performance with $333.4 million invested in the quarter and $1.2 billion for the year. Despite a 3% decrease in net income per share in the fourth quarter, the company saw a 7% increase in AFFO per share, highlighting its strong investment strategy and portfolio management. The company also updated its 2025 AFFO guidance to $1.85 to $1.89 per share, reflecting confidence in its continued growth and financial health.