Essex Property (ESS) AI Stock Analysis

• Market Cap: $17.50B
• Dividend Yield: 3.98%
• Average Volume (3M): 446.67K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.70
• Revenue Growth: 6.92%
• EPS Growth: 53.76%
• Country: US
• Employees: 1,712
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 2.56
• Shares Outstanding: 64,404,020
• 10 Day Avg. Volume: 527,250
• 30 Day Avg. Volume: 446,670
• PEG Ratio: 0.30
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 10.33
• P/FCF Ratio: 19.67
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 12.93
• Enterprise Value/Gross Profit: 21.54
• Enterprise Value/Ebitda: 14.89
• 1Y Price Target: $285.48
• Price Target Upside: 10.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 10.5
• Revenue Forecast (FY): $1.88B

• Rating: 69 Neutral
• Price Target: $276.00 ▲(7.23% Upside)

Essex Property's overall stock score is driven by its strong financial performance and strategic corporate actions, such as the senior notes offering. However, technical indicators suggest bearish momentum, and regional challenges highlighted in the earnings call pose risks. The valuation remains fair, providing a balanced outlook for investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Essex's properties and effective management, supporting long-term financial health.

Strategic Capital Allocation

Strategic acquisitions in high-demand areas like Northern California enhance Essex's portfolio and position it for future growth.

Balance Sheet Strength

Strong balance sheet and liquidity provide Essex with financial flexibility to navigate market challenges and pursue growth opportunities.

Negative Factors

High Debt-to-Equity Ratio

High leverage can increase financial risk, potentially impacting Essex's ability to invest in growth or weather economic downturns.

Challenges in Seattle

Underperformance in Seattle could hinder overall growth, as market saturation and competition limit pricing power.

Structured Finance Headwinds

Structured finance challenges may impact Essex's earnings growth, affecting its ability to maintain or increase distributions.

Essex Property Business Overview & Revenue Model

Company Description

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 246 apartment communities comprising approximately 60,000 apartment homes with an additional 6 properties in various stages of active development.

How the Company Makes Money

Essex Property generates revenue primarily through rental income from its multifamily residential properties. The company leases apartments to tenants, which provides a steady income stream. Additionally, Essex benefits from property appreciation, as rising real estate values can enhance the overall value of its asset portfolio. The company may also engage in property development and redevelopment, allowing it to increase its inventory of rental units, further boosting its revenue potential. Significant partnerships with property management firms and other real estate entities help optimize operational efficiencies and tenant satisfaction, contributing to higher occupancy rates and, consequently, increased revenue. Furthermore, Essex might explore additional revenue streams through ancillary services, such as parking fees and amenity rentals.

Essex Property Financial Statement Overview

Summary

Essex Property demonstrates strong revenue growth and profitability, with a net profit margin of 45.5% and robust cash flow performance. However, the decline in gross profit margin and high debt-to-equity ratio are concerns, typical for the REIT industry.

Income Statement

Essex Property shows strong revenue growth with a TTM increase of 22.9% compared to the previous year. The company maintains high profitability with a net profit margin of 45.5% and an EBIT margin of 49.9% in the TTM period. However, there is a slight decline in gross profit margin from 68% in 2024 to 60% in the TTM period, indicating increased cost pressures.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 1.19 in the TTM period, which is consistent with the industry norm for REITs but indicates leverage risk. Return on equity improved to 15.1% in the TTM period, reflecting better profitability. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Essex Property demonstrates strong cash flow performance with a significant free cash flow growth of 25% in the TTM period. The operating cash flow to net income ratio is robust at 11.04, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high at 96.3%, showing strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.77B	1.67B	1.61B	1.44B	1.50B
Gross Profit	1.12B	1.21B	1.14B	1.11B	1.21B	1.28B
EBITDA	1.62B	1.63B	1.19B	1.20B	1.50B	1.61B
Net Income	846.55M	741.52M	405.82M	408.31M	488.55M	568.87M
Balance Sheet
Total Assets	13.15B	12.93B	12.36B	12.37B	13.00B	12.94B
Cash, Cash Equivalents and Short-Term Investments	150.07M	136.59M	479.54M	146.04M	240.25M	221.40M
Total Debt	6.71B	6.65B	6.27B	6.03B	6.36B	6.33B
Total Liabilities	7.32B	7.18B	6.74B	6.45B	6.79B	6.72B
Stockholders Equity	5.63B	5.54B	5.42B	5.72B	5.99B	6.00B
Cash Flow
Free Cash Flow	1.12B	931.91M	839.69M	812.46M	784.06M	713.02M
Operating Cash Flow	1.15B	1.07B	980.06M	975.65M	905.26M	803.11M
Investing Cash Flow	-604.08M	-973.05M	-145.14M	145.96M	-397.40M	-416.90M
Financing Cash Flow	-555.50M	-419.74M	-477.27M	-1.14B	-533.26M	-383.26M

Essex Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 257.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESS, the sentiment is Positive. The current price of 257.39 is below the 20-day moving average (MA) of 258.57, below the 50-day MA of 257.87, and below the 200-day MA of 269.83, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 68.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESS.

Essex Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPT	73 Outperform	$15.21B	43.59	5.79%	3.88%	1.41%	-21.93%
MAA	71 Outperform	$16.47B	29.05	9.41%	4.42%	0.91%	6.55%
EQR	70 Outperform	$23.58B	20.64	10.55%	4.52%	4.78%	24.74%
ESS	69 Neutral	$17.50B	19.96	15.30%	3.98%	6.92%	53.76%
INVH	69 Neutral	$16.77B	52.63	5.99%	4.31%	6.82%	27.91%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UDR	64 Neutral	$19.31B	82.65	4.41%	4.75%	2.38%	17.42%

Essex Property Corporate Events

Essex Property Issues $350M Senior Notes

On December 12, 2025, Essex Portfolio, L.P., the operating partnership of Essex Property Trust, Inc., issued $350 million in 4.875% senior notes due in 2036. This issuance is governed by an indenture with various restrictive covenants and is guaranteed by Essex Property Trust, Inc. The notes are unsecured senior obligations and are subject to certain conditions for redemption and default, potentially impacting the company’s financial operations and obligations.

Essex Property Announces $350 Million Senior Notes Offering

On December 3, 2025, Essex Property Trust, Inc. and its operating partnership, Essex Portfolio, L.P., announced the pricing of a $350 million public offering of 4.875% senior notes due in 2036. The proceeds from this offering will be used to repay upcoming debt maturities, including a portion of the $450 million senior notes due in April 2026, and for general corporate purposes, potentially including acquisitions. This strategic financial move is expected to enhance Essex’s operational flexibility and support its growth initiatives in the competitive real estate market.