Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.06B
• Dividend Yield: 3.86%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.52
• Revenue Growth: 25.79%
• EPS Growth: 2.46%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 61
• Industry: REIT - Diversified
• EPS (TTM): 0.32
• Shares Outstanding: 197,512,310
• 10 Day Avg. Volume: 2,084,653
• 30 Day Avg. Volume: 1,982,816
• PEG Ratio: 15.70
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 56.48
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 44.60
• Enterprise Value/Gross Profit: 608.19
• Enterprise Value/Ebitda: 53.94
• 1Y Price Target: $35.67
• Price Target Upside: 16.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 76 Outperform
• Price Target: $35.00 ▲(14.57%Upside)

Essential Properties Realty's strong financial performance and positive earnings guidance are the primary drivers of its overall score. The company's robust balance sheet and strategic investments position it well for future growth. However, technical indicators suggest short-term caution, and liquidity management should be monitored due to declining free cash flow.

Positive Factors

Acquisition Performance

EPRT reported a solid 2Q25 on strong acquisition execution of $334.0M with cap rates expanding, leading to sector-leading growth.

Financial Guidance

EPRT raised FY25 AFFOps guidance and acquisition guidance by 10% to $1.1B.

Negative Factors

Leasing and Occupancy

The leasing recovery rate decreased significantly, indicating a challenge in maintaining occupancy levels.

Tenant Credit Risk

The portfolio has reached an age where tenant credit risk is more likely, impacting overall risk assessment.

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

EPRT generates revenue primarily through rental income from its portfolio of single-tenant properties, which are leased on a long-term basis under triple-net leases. This lease structure ensures a steady and predictable income stream, as tenants are responsible for most property-related expenses, reducing EPRT's operational costs. The company's focus on essential service sectors helps maintain occupancy rates and rental growth, even during economic downturns. Additionally, EPRT may engage in strategic property acquisitions and dispositions to optimize its portfolio and enhance shareholder value, further contributing to its earnings.

Essential Properties Realty Financial Statement Overview

Summary

Essential Properties Realty demonstrates strong financial performance with robust revenue growth and high profitability margins. The balance sheet is solid with no debt, enhancing financial stability. However, a decline in free cash flow due to significant capital expenditures may present future liquidity challenges.

Income Statement

Essential Properties Realty has demonstrated strong revenue growth with a 6.0% increase in TTM revenue compared to the previous year. The company maintains robust profitability with a gross profit margin of 92.4% and a commendable net profit margin of 44.6% in the TTM period. This indicates efficient operations and cost management. However, the EBITDA margin slightly declined from 90.1% in 2024 to 84.3% in the TTM, suggesting potential increases in operating expenses.

Balance Sheet

The company's balance sheet is strong with zero total debt in the TTM period, improving its financial stability and risk profile significantly. The equity ratio stands at 63.0%, indicating a high level of financial independence and low leverage. Return on equity is solid at 5.6%, reflecting effective use of equity to generate profit.

Cash Flow

Essential Properties Realty shows a positive trend in operating cash flow, with a 3.4% year-over-year increase in the TTM. However, free cash flow declined by 65.5% due to significant capital expenditures. The operating cash flow to net income ratio is healthy at 1.50, indicating strong cash generation relative to net income, but the decrease in free cash flow signals potential challenges in liquidity management.

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
EBITDA	404.97M	352.05M	279.50M	199.95M	135.34M
Net Income	203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet
Total Assets	5.80B	4.77B	4.00B	3.30B	2.49B
Cash, Cash Equivalents and Short-Term Investments	40.71M	39.81M	62.34M	59.76M	26.60M
Total Debt	2.13B	1.69B	1.42B	1.17B	815.28M
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: 30.55
• 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 EPRT, the sentiment is Negative. The current price of 30.55 is below the 20-day moving average (MA) of 31.26, below the 50-day MA of 31.72, and below the 200-day MA of 31.53, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 26.86 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
UE	78 Outperform	$2.63B	31.49	6.48%	3.63%	6.18%	-72.21%
EPRT	76 Outperform	$6.06B	26.35	6.33%	3.86%	25.79%	2.46%
OLP	74 Outperform	$506.17M	17.33	9.57%	7.68%	1.82%	-1.03%
WPC	74 Outperform	$13.89B	32.71	5.02%	5.50%	-5.89%	-26.36%
BNL	66 Neutral	$3.00B	26.70	3.79%	7.31%	0.73%	-37.65%
Sector *	64 Neutral	$6.87B	17.44	-1.93%	6.95%	4.65%	-24.33%
GNL	57 Neutral	$1.59B	―	-13.01%	12.99%	16.69%	39.04%

Essential Properties Realty Corporate Events

Essential Properties Realty Reports Strong Q2 2025 Results

Essential Properties Realty Trust, Inc. reported strong financial results for the second quarter of 2025, with a net income per share increase of 10% to $0.32 and an AFFO per share increase of 7% to $0.46. The company closed investments totaling $334.0 million at a 7.9% weighted average cash cap rate and raised its 2025 AFFO guidance to $1.86 to $1.89 per share. The company also increased its 2025 investment guidance to $1.0 to $1.2 billion, reflecting a positive outlook on its investment pipeline and market conditions.

The most recent analyst rating on (EPRT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Appoints New Board Member

On July 15, 2025, Essential Properties Realty Trust, Inc. announced the election of Ms. Kristin L. Smallwood to its Board of Directors, increasing the number of directors from seven to eight. Ms. Smallwood, a former partner at PricewaterhouseCoopers with nearly 30 years of experience in audit and audit-related services, brings significant expertise in corporate governance, financial analysis, and compliance matters. Her appointment is expected to enhance the board’s capabilities in these areas, thereby potentially increasing stockholder value.

The most recent analyst rating on (EPRT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Announces Increased Quarterly Dividend

On May 30, 2025, Essential Properties Realty Trust, Inc. announced a quarterly cash dividend of $0.30 per share for the second quarter of 2025, reflecting an approximately 2% increase over the prior quarter. This dividend, payable on July 14, 2025, signifies an annualized dividend of $1.20 per share, which is $0.02 higher than the previous annualized dividend, highlighting the company’s commitment to delivering value to its shareholders.

The most recent analyst rating on (EPRT) stock is a Buy with a $31.25 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Highlights Strong Portfolio Performance

On June 2, 2025, Essential Properties Realty Trust, Inc. released an investor presentation highlighting its strong portfolio performance and financial health. The company reported a stable portfolio with a 99.7% lease rate and a robust balance sheet, including $1.5 billion in liquidity and low leverage. The presentation also emphasized healthy investment activity with significant closed investments and capital recycling at attractive yields, positioning the company for continued growth and resilience in the real estate market.

The most recent analyst rating on (EPRT) stock is a Buy with a $31.25 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Holds Annual Stockholders Meeting

On May 12, 2025, Essential Properties Realty Trust, Inc. held its 2025 Annual Meeting of Stockholders, where shareholders voted on several key proposals. All seven director nominees were elected, the compensation of the company’s named executive officers was approved on an advisory basis, and the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025 was ratified. The meeting saw a high participation rate, with 83.2% of eligible shares voted, indicating strong shareholder engagement.

The most recent analyst rating on (EPRT) stock is a Buy with a $31.25 price target. To see the full list of analyst forecasts on Essential Properties Realty stock, see the EPRT Stock Forecast page.

Essential Properties Realty Highlights Strong Financial Position

On May 5, 2025, Essential Properties Realty Trust released an investor presentation highlighting its strong financial position and strategic growth initiatives. The company reported a stable and healthy net lease portfolio with a 99.7% occupancy rate and a well-positioned balance sheet, including significant liquidity and low leverage. The presentation emphasized the company’s disciplined investment strategy, focusing on high-growth, low-risk opportunities in the middle market, and its commitment to maintaining a conservative financial approach with no debt maturities until 2027.