Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.31B
• Dividend Yield: 3.69%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.58
• Revenue Growth: 25.47%
• EPS Growth: -4.35%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Diversified
• EPS (TTM): 0.29
• Shares Outstanding: 197,512,310
• 10 Day Avg. Volume: 1,146,931
• 30 Day Avg. Volume: 1,409,335
• PEG Ratio: 16.38
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.92
• 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: $35.78
• Price Target Upside: 12.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $36.00 ▲( 13.53% Upside)

Essential Properties Realty's strong financial health, supported by high profitability and no debt, along with positive earnings call sentiment, positions the company favorably. However, caution is advised due to potential liquidity management challenges from declining free cash flow and high valuation metrics. Technical indicators also suggest potential short-term market pressures, necessitating a balanced outlook on the stock's performance.

Positive Factors

Acquisitions

Quarterly acquisitions increased +23.7% y/y to $307.7M with cash/GAAP cap rates at 7.8%/9.4%.

Earnings

EPRT raised its FY25e AFFO/sh guidance, implying +7.5% year-over-year growth.

Portfolio Management

The price target for EPRT has been raised due to increases in reNAV/sh and AFFO/sh estimates and continued portfolio management success.

Negative Factors

Interest Rate Sensitivity

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

Tenant Credit Risk

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

Valuation Concerns

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

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 exhibits strong financial performance with robust revenue growth, high profitability, and a solid balance sheet with no debt. The decline in free cash flow due to capital expenditures suggests potential liquidity management challenges, which slightly moderates the score.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
475.89M	449.61M	359.60M	286.51M	230.23M	164.01M
	Gross Profit
439.66M	444.61M	351.38M	283.05M	224.47M	160.13M
	EBIT
305.14M	278.19M	242.75M	175.42M	134.42M	72.83M
	EBITDA
453.55M	438.52M	352.05M	279.50M	199.95M	135.34M
	Net Income Common Stockholders
212.14M	203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.00M	40.71M	39.81M	62.34M	59.76M	26.60M
	Total Assets
6.06B	5.80B	4.77B	4.00B	3.30B	2.49B
	Total Debt
2.13B	2.13B	1.69B	1.42B	1.17B	815.28M
	Net Debt
2.08B	2.09B	1.65B	1.36B	1.11B	788.68M
	Total Liabilities
2.23B	2.23B	1.78B	1.50B	1.25B	906.85M
	Stockholders Equity
3.81B	3.56B	2.98B	2.49B	2.04B	1.57B
Cash Flow		Free Cash Flow
106.57M	308.48M	254.57M	-517.71M	167.39M	99.39M
	Operating Cash Flow
318.89M	308.48M	254.57M	211.02M	167.39M	99.39M
	Investing Cash Flow
-1.18B	-1.12B	-857.13M	-706.08M	-829.68M	-545.51M
	Financing Cash Flow
825.50M	810.70M	580.01M	506.80M	689.06M	457.79M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.71
• 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 EPRT, the sentiment is Positive. The current price of 31.71 is below the 20-day moving average (MA) of 31.91, above the 50-day MA of 31.69, and above the 200-day MA of 31.65, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPRT.

Essential Properties Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPRT	78 Outperform	$6.31B	27.47	6.01%	3.69%	25.47%	-4.35%
UE	73 Outperform	$2.34B	28.12	6.48%	3.95%	6.18%	-72.21%
OLP	70 Neutral	$526.47M	18.02	9.57%	7.59%	1.82%	-1.03%
WPC	68 Neutral	$13.19B	31.06	5.02%	5.82%	-5.89%	-26.36%
BNL	67 Neutral	$2.92B	25.96	3.79%	7.45%	0.73%	-37.65%
Sector *	60 Neutral	$2.76B	10.33	0.49%	8508.28%	5.95%	-17.56%
GNL	60 Neutral	$1.69B	―	-13.01%	13.43%	16.69%	39.04%

Essential Properties Realty Corporate Events

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.

Essential Properties Realty Reports Strong Q1 2025 Results

Essential Properties Realty Trust, Inc. reported its financial results for the first quarter of 2025, highlighting a net income per share of $0.29 and an AFFO per share of $0.45, both showing an increase from the previous year. The company closed investments totaling $307.7 million at a 7.8% weighted average cash cap rate and reiterated its 2025 AFFO guidance. The CEO noted strong investment execution and resilient portfolio trends, despite a challenging macroeconomic environment.

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.

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.