Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $5.91B
• Dividend Yield: 3.97%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.46
• Revenue Growth: 25.79%
• EPS Growth: 2.46%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.32
• Shares Outstanding: 198,139,590
• 10 Day Avg. Volume: 2,129,402
• 30 Day Avg. Volume: 1,646,763
• 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: 1.47
• Enterprise Value/Revenue: 17.28
• Enterprise Value/Gross Profit: 17.51
• Enterprise Value/Ebitda: 18.96
• 1Y Price Target: $35.55
• Price Target Upside: 19.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: $34.00 ▲(14.29% Upside)

Essential Properties Realty's strong financial performance and positive corporate events are the most significant factors contributing to its score. However, the relatively high valuation and neutral technical indicators slightly temper the overall outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for EPRT's properties and effective portfolio management, supporting long-term profitability.

Strong Balance Sheet

A well-structured balance sheet with moderate leverage and strong equity provides financial stability and flexibility for future growth.

High Occupancy and Tenant Health

High occupancy and robust tenant health ensure stable rental income, reducing risk and enhancing long-term financial performance.

Negative Factors

Zips Car Wash Bankruptcy

The bankruptcy highlights potential tenant risk, which could affect rental income stability and necessitate increased risk management.

Higher G&A Expenses

Rising administrative costs can pressure margins, potentially impacting profitability if not managed effectively over the long term.

Slight Increase in Vacancy

Even a slight increase in vacancy can signal challenges in tenant retention, which may affect revenue consistency if it continues.

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 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: 29.75
• 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 29.75 is below the 20-day moving average (MA) of 30.14, below the 50-day MA of 30.45, and below the 200-day MA of 31.15, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 28.39 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
WPC	77 Outperform	$14.99B	44.98	4.09%	5.18%	0.23%	-41.66%
UE	75 Outperform	$2.66B	24.15	8.07%	3.69%	6.09%	-65.94%
EPRT	73 Outperform	$5.91B	25.07	6.33%	3.97%	25.79%	2.46%
BNL	71 Outperform	$3.43B	35.34	2.80%	6.40%	2.74%	-37.41%
AHH	60 Neutral	$690.20M	74.02	2.60%	9.18%	-25.73%	―
GNL	58 Neutral	$1.80B	-6.68	-15.59%	11.41%	-11.06%	29.36%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Essential Properties Realty Corporate Events

Essential Properties Realty Highlights Strong Financial Performance

On September 8, 2025, Essential Properties Realty Trust, Inc. released an investor presentation highlighting its strong financial performance and strategic initiatives. The company reported a stable and diversified portfolio with a high occupancy rate and low lease expiration risk. It also emphasized its robust balance sheet and liquidity, with recent equity and debt executions demonstrating strong market access. The presentation underscored the company’s disciplined growth strategy, focusing on accretive investments and capital recycling, while maintaining low leverage and a conservative payout ratio. These efforts position Essential Properties favorably in the real estate market, catering to the growing demand for private credit solutions amid tighter lending conditions.

Essential Properties Realty Declares Quarterly Dividend

On September 5, 2025, Essential Properties Realty Trust, Inc. announced a quarterly cash dividend of $0.30 per share for the third quarter of 2025, translating to an annualized dividend of $1.20 per share. This dividend is scheduled for payment on October 14, 2025, to shareholders recorded by the end of business on September 30, 2025, reflecting the company’s stable financial performance and commitment to returning value to its investors.

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.