Essential Properties Realty (EPRT) AI Stock Analysis

• Market Cap: $6.18B
• Dividend Yield: 3.88%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.34
• Revenue Growth: 24.60%
• EPS Growth: 8.05%
• Country: US
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.33
• Shares Outstanding: 198,144,550
• 10 Day Avg. Volume: 1,408,558
• 30 Day Avg. Volume: 1,709,370
• PEG Ratio: -3.72
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 12.10
• P/FCF Ratio: 17.63
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 16.16
• Enterprise Value/Gross Profit: 16.37
• Enterprise Value/Ebitda: 17.58
• 1Y Price Target: $35.89
• Price Target Upside: 16.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $36.00 ▲(16.85% Upside)

Essential Properties Realty's strong financial performance and positive earnings call guidance are the most significant factors driving the score. While technical indicators and valuation present some concerns, the company's robust growth trajectory and strategic investments support a favorable outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Portfolio Performance

Improved portfolio performance with high occupancy and rent coverage enhances income stability and reduces risk.

Strong Cash Flow

Robust cash flow generation supports financial flexibility and the ability to invest in growth opportunities.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain financial resources and limit the company's ability to finance future growth.

Increased G&A Expenses

Rising G&A expenses may pressure profit margins and reduce operational efficiency if not controlled.

Potential Cap Rate Compression

Cap rate compression could reduce investment yields, impacting future profitability and growth potential.

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 rental income from its portfolio of net lease properties. The company enters into long-term leases with tenants, which typically include fixed rental escalations, ensuring consistent cash flow over time. Additional revenue streams may come from lease renewals and increases in rental rates as market conditions improve. EPRT also benefits from its strategic focus on essential businesses, which tend to be more resilient during economic downturns, thus maintaining occupancy rates and minimizing tenant turnover. Partnerships with established brands and businesses in essential sectors further bolster its earnings, as these relationships often lead to stable, long-term leases.

Essential Properties Realty Financial Statement Overview

Summary

Essential Properties Realty exhibits strong financial health with robust revenue growth, high profitability margins, and efficient cash flow management. The balance sheet is solid, though increasing debt levels warrant attention. Overall, the company is well-positioned in the REIT sector, with a strong operational foundation and growth trajectory.

Income Statement

Essential Properties Realty has demonstrated strong revenue growth with a TTM increase of 5.72%, supported by high gross profit margins consistently above 98%. The net profit margin remains robust at 45.17% TTM, indicating effective cost management. EBIT and EBITDA margins are also strong, reflecting operational efficiency. However, the slight decline in net profit margin from previous years suggests potential cost pressures.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.69 TTM, indicating moderate leverage. The return on equity is stable at 6.39% TTM, showing consistent profitability. The equity ratio stands at 58.03%, reflecting a solid equity base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow is strong, with a TTM coverage ratio of 3.79, indicating good cash generation relative to net income. Free cash flow growth is positive at 7.55% TTM, and the free cash flow to net income ratio is 1.0, showing efficient cash conversion. The consistent positive free cash flow trend supports financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	531.06M	449.61M	359.60M	286.51M	230.23M	164.01M
Gross Profit	524.14M	444.61M	354.93M	283.05M	224.47M	160.13M
EBITDA	488.13M	404.97M	352.05M	253.50M	199.95M	131.84M
Net Income	240.31M	203.00M	190.71M	134.13M	95.72M	42.27M
Balance Sheet
Total Assets	6.61B	5.80B	4.77B	4.00B	3.30B	2.49B
Cash, Cash Equivalents and Short-Term Investments	23.84M	40.71M	39.81M	62.34M	59.76M	26.60M
Total Debt	2.64B	2.13B	1.69B	1.44B	1.19B	862.99M
Total Liabilities	2.77B	2.23B	1.78B	1.50B	1.25B	906.85M
Stockholders Equity	3.84B	3.56B	2.98B	2.49B	2.04B	1.57B
Cash Flow
Free Cash Flow	97.23M	308.48M	254.57M	211.02M	167.39M	99.39M
Operating Cash Flow	363.00M	308.48M	254.57M	211.02M	167.39M	99.39M
Investing Cash Flow	-1.19B	-1.12B	-857.13M	-706.08M	-829.68M	-545.51M
Financing Cash Flow	813.59M	810.70M	580.01M	506.80M	689.06M	457.79M

Essential Properties Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.81
• 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 30.81 is below the 20-day moving average (MA) of 31.08, above the 50-day MA of 30.58, and above the 200-day MA of 30.79, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 34.95 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	79 Outperform	$6.18B	25.05	6.84%	3.88%	24.60%	8.05%
WPC	70 Neutral	$14.28B	39.42	4.36%	5.42%	5.59%	-34.75%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UE	64 Neutral	$2.53B	21.72	8.71%	3.87%	5.29%	-60.36%
AHH	61 Neutral	$541.84M	50.00	4.09%	9.06%	-39.94%	―
BNL	61 Neutral	$3.27B	37.34	3.05%	6.59%	3.87%	-37.59%
GNL	61 Neutral	$1.81B	―	-12.53%	10.23%	-28.94%	-28.24%

Essential Properties Realty Corporate Events

Essential Properties Realty Releases Investor Presentation

On December 9, 2025, Essential Properties Realty Trust, Inc. released an investor presentation detailing its financial and operational performance. The company highlighted its stable portfolio with a 99.8% lease rate and robust balance sheet, raising approximately $170 million in common equity in the fourth quarter of 2025. Essential Properties continues to execute its business plan with consistent growth, low leverage, and disciplined external growth strategies. The company’s investment strategy focuses on low-risk, high-growth opportunities in a large and underserved market, with a strong emphasis on maintaining a healthy net lease portfolio and excellent liquidity.

Essential Properties Realty Declares Increased Quarterly Dividend

On December 5, 2025, Essential Properties Realty Trust, Inc.’s Board of Directors declared a quarterly cash dividend of $0.31 per share for the fourth quarter of 2025, representing an annualized dividend of $1.24 per share. This increase of approximately 3% over the prior quarter’s dividend reflects the company’s continued financial performance and commitment to returning value to shareholders. The dividend is payable on January 14, 2026, to stockholders of record as of December 31, 2025.

Essential Properties Realty Reports Strong Q3 2025 Results

Essential Properties Realty Trust, Inc. reported its third-quarter 2025 financial results, highlighting a 22% increase in net income per share to $0.33 and a 12% rise in adjusted funds from operations (AFFO) per share to $0.48. The company closed investments worth $369.8 million at an 8.0% weighted average cash cap rate and increased its 2025 AFFO guidance to $1.87-$1.89 per share. The announcement reflects the company’s strong performance and strategic growth, supported by resilient tenant credit and robust origination activity, positioning it well for future growth in the middle market consumer service economy.

Essential Properties Realty Releases 2024 ESG Report

On September 17, 2025, Essential Properties Realty Trust, Inc. released its 2024 Corporate Responsibility Report, detailing its progress and initiatives in Environmental, Social, and Governance (ESG) matters for the year ending December 31, 2024. The report highlights the company’s commitment to strong corporate governance, diversity, and sustainability, emphasizing its strategy to enhance tenant relationships through energy-efficient initiatives and its inclusive culture that aligns employee incentives with stockholder interests. The company’s focus on ESG is seen as a critical component for achieving growth and attractive returns for its stakeholders.