Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.11B
• Dividend Yield: 3.84%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.49
• Revenue Growth: 25.79%
• EPS Growth: 2.46%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Diversified
• EPS (TTM): 0.32
• Shares Outstanding: 198,139,590
• 10 Day Avg. Volume: 1,162,475
• 30 Day Avg. Volume: 1,468,979
• 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: 1.42
• Enterprise Value/Revenue: 17.28
• Enterprise Value/Gross Profit: 17.51
• Enterprise Value/Ebitda: 18.96
• 1Y Price Target: $35.70
• Price Target Upside: 16.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $35.00 ▲(13.86% Upside)

Essential Properties Realty scores well due to its strong financial performance and positive corporate events. The technical analysis suggests a neutral trend, while the valuation is moderate. The earnings call provided a positive outlook despite some challenges.

Positive Factors

Acquisitions

EPRT reported a solid performance with strong acquisition execution of $334.0M, leading to sector-leading growth.

Financial Performance

The company's guidance represents 8% year-over-year growth, one of the highest in the sector.

Guidance

EPRT raised its full year AFFOps and acquisition guidance by 10% to $1.1B, indicating confidence in future growth.

Negative Factors

AFFO Performance

2Q25 AFFO per share was a penny shy of consensus and the estimate.

Leasing

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

Rental Income

Total rent coverage declined, suggesting potential pressure on rental income stability.

Essential Properties Realty Business Overview & Revenue Model

Company Description

Essential Properties Realty Trust (EPRT) is a real estate investment trust (REIT) that focuses on acquiring and managing properties leased to operators in the essential services sector, particularly in the healthcare and service industries. The company primarily targets single-tenant, net-leased properties that are critical to the operations of its tenants, ensuring stable, long-term returns for investors. EPRT's portfolio includes a diverse range of properties, including medical facilities, childcare centers, and convenience stores, which are strategically located to meet the needs of the communities they serve.

How the Company Makes Money

Essential Properties Realty Trust generates revenue primarily through the leasing of its real estate holdings. The company enters into long-term net leases with tenants, whereby the tenants are responsible for property expenses such as maintenance, property taxes, and insurance, reducing EPRT's operational costs. The main revenue stream comes from rental income, which is collected monthly and often includes contractual rent increases over the lease term. Additionally, EPRT may benefit from property appreciation over time, enhancing the overall value of its portfolio. The company may also engage in strategic partnerships or joint ventures that can provide additional capital or access to new investment opportunities, further contributing to its earnings.

Essential Properties Realty Financial Statement Overview

Summary

Essential Properties Realty exhibits strong financial performance with impressive revenue and profit growth, efficient cost management, and strong cash flow generation. The balance sheet is well-structured with moderate leverage and a solid equity position.

Income Statement

Essential Properties Realty has shown impressive revenue growth, with a notable increase from $359.6 million in 2023 to $504.1 million in the TTM period ending June 2025. Gross Profit Margin is strong at approximately 98.7% for TTM, indicating excellent cost management. Net Profit Margin is solid at 44.4%, and EBIT Margin stands at 62.8%, reflecting high operational efficiency. EBITDA Margin is robust at 80.7%. The company demonstrates strong profitability and growth trends.

Balance Sheet

The Debt-to-Equity Ratio is stable at 0.61 for TTM, suggesting moderate leverage. Return on Equity is strong at 5.85%, indicating efficient use of equity capital. The Equity Ratio stands at 60.9%, showcasing a solid equity base. The company's balance sheet is well-structured, with a healthy equity position and manageable debt levels.

Cash Flow

Operating Cash Flow to Net Income Ratio is healthy at 1.51 for TTM, indicating strong cash generation relative to net income. Free Cash Flow growth is positive, with an increase to $337.5 million in TTM. The Free Cash Flow to Net Income Ratio is robust at 1.51, reflecting strong liquidity and cash management. The company maintains solid cash flow performance, supporting its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	503.26M	449.61M	359.60M	286.51M	230.23M	164.01M
Gross Profit	496.65M	444.61M	354.93M	283.05M	224.47M	160.13M
EBITDA	458.82M	404.97M	352.05M	279.50M	199.95M	128.15M
Net Income	223.84M	203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet
Total Assets	6.29B	5.80B	4.77B	4.00B	3.30B	2.49B
Cash, Cash Equivalents and Short-Term Investments	20.78M	40.71M	39.81M	62.34M	59.76M	26.60M
Total Debt	2.33B	2.13B	1.69B	1.44B	1.19B	825.45M
Total Liabilities	2.45B	2.23B	1.78B	1.50B	1.25B	906.85M
Stockholders Equity	3.83B	3.56B	2.98B	2.49B	2.04B	1.57B
Cash Flow
Free Cash Flow	337.54M	308.48M	254.57M	-517.71M	167.39M	99.39M
Operating Cash Flow	337.54M	308.48M	254.57M	211.02M	167.39M	99.39M
Investing Cash Flow	-1.13B	-1.12B	-857.13M	-706.08M	-829.68M	-545.51M
Financing Cash Flow	792.28M	810.70M	580.01M	506.80M	689.06M	457.79M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.74
• 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 30.74 is above the 20-day moving average (MA) of 30.74, below the 50-day MA of 30.94, and below the 200-day MA of 31.36, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 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	78 Outperform	$6.11B	25.90	6.33%	3.84%	25.79%	2.46%
WPC	77 Outperform	$14.51B	43.54	3.99%	5.30%	0.23%	-41.66%
UE	75 Outperform	$2.72B	24.66	8.46%	3.41%	6.09%	-65.94%
OLP	74 Outperform	$507.82M	18.18	9.16%	7.64%	5.57%	-14.50%
BNL	71 Outperform	$3.49B	36.01	3.32%	6.28%	2.74%	-37.41%
Sector *	63 Neutral	$7.02B	13.29	-0.50%	6.92%	4.08%	-25.24%
GNL	57 Neutral	$1.73B	―	-11.87%	11.73%	-11.06%	29.36%

Essential Properties Realty Corporate Events

Essential Properties Realty Closes $400M Senior Notes Offering

On August 21, 2025, Essential Properties, L.P. successfully closed a $400 million public offering of 5.400% Senior Notes due 2035, guaranteed by its parent company, Essential Properties Realty Trust, Inc. This strategic financial move is expected to strengthen the company’s capital structure, positioning it competitively within the real estate market, while providing stakeholders with a secure investment opportunity.

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.

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.