Empiric Student Property (ESP) AI Stock Analysis

• Market Cap: £494.82M
• Dividend Yield: 5.19%
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.69
• Revenue Growth: 4.90%
• EPS Growth: -50.68%
• Country: UK
• Employees: 369
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.02
• Shares Outstanding: 664,188,100
• 10 Day Avg. Volume: 1,773,672
• 30 Day Avg. Volume: 3,217,872
• PEG Ratio: -0.40
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 5.98
• P/FCF Ratio: 11.74
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.31
• Revenue Forecast (FY): £5.69B

• Rating: 64 Neutral
• Price Target: 80.00p ▲(7.82% Upside)

Empiric Student Property's overall stock score is driven by strong corporate events and solid financial performance. However, technical analysis indicates bearish momentum, which weighs down the score. The valuation is reasonable, but not enough to counteract the technical weaknesses. The acquisition by Unite Group is a significant positive, expected to enhance strategic positioning and shareholder value.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for student accommodation and effective management of rental properties, supporting long-term stability.

Profitability Margins

High gross profit margins reflect efficient cost management and pricing power, contributing to sustainable profitability despite recent net income challenges.

Balance Sheet Health

A strong balance sheet with moderate leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Negative Factors

Net Income Decline

A decline in net income and return on equity can impact investor confidence and limit reinvestment capacity, posing a challenge to future growth.

Cash Flow Growth

Limited growth in free cash flow may restrict the company's ability to fund new projects or increase shareholder returns, affecting long-term expansion.

Earnings Volatility

Volatility in earnings can lead to uncertainty in financial performance, impacting strategic planning and investor perception over the medium term.

Empiric Student Property Business Overview & Revenue Model

Company Description

Empiric Student Property plc is a leading provider and operator of modern, predominantly direct-let, premium student accommodation located in high-demand university towns and cities across the UK. Investing in both operating and development assets, Empiric is a fully integrated operational student property business focused on premium studio-led accommodation managed through its Hello Student® operating platform, that is attractive to affluent growing student segments. The Company, an internally managed real estate investment trust (REIT) incorporated in England and Wales, listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.

How the Company Makes Money

ESP generates revenue primarily through the leasing of its student accommodation properties. The company's revenue model is based on securing long-term leases with educational institutions or directly renting out units to students. Key revenue streams include rental income from individual tenants and service charges related to property maintenance and amenities. Additionally, ESP may benefit from strategic partnerships with universities and local businesses, enhancing its market reach and occupancy rates. The company's focus on high-demand locations and quality accommodations also contributes to its ability to command competitive rental prices, ultimately driving profitability.

Empiric Student Property Financial Statement Overview

Summary

Empiric Student Property demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet reflects a stable financial position with moderate leverage. While cash flow generation remains strong, growth has been modest. Overall, the company shows resilience with potential for future growth, but attention to improving net income and cash flow growth could enhance its financial standing.

Income Statement

The company has shown consistent revenue growth, with a 4.6% increase from 2023 to 2024. Gross Profit Margin improved slightly to 69.0%, while Net Profit Margin decreased to 40.8% due to a lower net income. EBIT Margin remained strong at 64.6%. Overall, the income statement reflects steady growth, strong profitability, but a recent dip in net income.

Balance Sheet

The Debt-to-Equity Ratio stands at a manageable 0.46, indicating moderate leverage. The company's Equity Ratio is healthy at 65.3%, reflecting a strong equity base. Return on Equity decreased to 4.3% due to lower net income, but the balance sheet remains stable with solid asset backing.

Cash Flow

Operating Cash Flow remained stable, supporting a strong Free Cash Flow. However, the Free Cash Flow Growth Rate was minor at 1.9%. The Operating Cash Flow to Net Income Ratio is robust at 1.25, indicating efficient cash generation. Overall, cash flow is stable, though growth was limited.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.60M	84.20M	80.50M	73.00M	55.97M	59.44M
Gross Profit	57.50M	58.10M	55.30M	48.40M	32.45M	36.47M
EBITDA	42.10M	43.00M	70.40M	36.40M	22.95M	27.32M
Net Income	28.90M	34.40M	53.40M	67.70M	29.20M	-23.97M
Balance Sheet
Total Assets	1.21B	1.23B	1.15B	1.15B	1.07B	1.05B
Cash, Cash Equivalents and Short-Term Investments	38.40M	75.40M	40.50M	55.80M	37.13M	33.93M
Total Debt	371.20M	371.40M	357.80M	387.80M	372.03M	385.27M
Total Liabilities	402.10M	425.40M	416.10M	445.70M	421.88M	421.47M
Stockholders Equity	807.40M	801.30M	734.20M	700.80M	647.60M	633.28M
Cash Flow
Free Cash Flow	41.30M	42.90M	42.10M	28.40M	29.68M	5.22M
Operating Cash Flow	41.40M	43.00M	43.70M	30.30M	30.64M	5.66M
Investing Cash Flow	-31.90M	-31.50M	8.80M	-9.40M	1.30M	-14.70M
Financing Cash Flow	700.00K	23.40M	-67.80M	-2.20M	-40.50M	26.45M

Empiric Student Property Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.20
• 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 GB:ESP, the sentiment is Negative. The current price of 74.2 is below the 20-day moving average (MA) of 74.80, below the 50-day MA of 77.40, and below the 200-day MA of 86.97, indicating a bearish trend. The MACD of -1.17 indicates Negative momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 34.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ESP.

Empiric Student Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRSR	76 Outperform	£627.25M	8.15	10.16%	3.88%	13.95%	-17.77%
UTG	72 Outperform	£2.55B	7.36	7.57%	5.96%	12.77%	14.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESP	64 Neutral	£494.82M	17.01	3.72%	5.19%	4.90%	-50.68%
RESI	53 Neutral	£105.03M	―	―	7.20%	―	―
KCR	35 Underperform	£3.58M	10.89	2.62%	―	4.96%	―

Empiric Student Property Corporate Events

Empiric CEO Appointed as Non-Executive Chairman at Tortilla Mexican Grill

Empiric Student Property plc announced that its CEO, Duncan Garrood, will take on the role of Non-Executive Chairman at Tortilla Mexican Grill PLC starting December 5, 2025. This appointment highlights the leadership capabilities within Empiric and may enhance its strategic positioning in the market.

Empiric Student Property Acquired by Unite Group

Empiric Student Property PLC has announced its acquisition by The Unite Group PLC, which has been approved by the Competition and Markets Authority. This acquisition will be executed through a Court-sanctioned scheme of arrangement, with the final steps expected to be completed by January 2026. The acquisition involves a cash and share offer, with adjustments to dividends and cash considerations for Empiric shareholders. The acquisition is expected to enhance Unite’s position in the student accommodation market, providing potential benefits to shareholders of both companies.

Empiric Student Property Declares Interim Dividend for Q3 2025

Empiric Student Property plc has announced an interim dividend of 0.925 pence per ordinary share for the quarter ending 30 September 2025. This dividend, classified as a Property Income Distribution, reflects the company’s ongoing commitment to providing returns to its shareholders through its tax-exempt property rental business.

Empiric Student Property Reports Steady Growth Amid Market Changes

Empiric Student Property plc reported a business and trading update, highlighting an 89% occupancy rate for the academic year 2025/26 and a like-for-like rental growth of 4.5%. The company is progressing with its postgraduate accommodation conversions and has reconfirmed its dividend target. However, geopolitical factors have led to a decrease in Chinese student reservations, while UK student bookings have increased. The company is also undergoing a potential acquisition by The Unite Group PLC, with a Competition and Markets Authority investigation underway. Empiric continues to focus on portfolio management, including refurbishments and green initiatives, while maintaining a strong financial position with a property LTV of 27.3%.

Empiric Student Property Increases Share Capital

Empiric Student Property plc announced an increase in its issued share capital to 664,188,110 Ordinary Shares as of 31 October 2025, following the issuance of 4,769 shares under its SAYE Option Plan. This update allows shareholders to calculate their notifiable interests in the company, aligning with the FCA’s Disclosure Guidance and Transparency Rules.

Empiric Student Property Acquisition by Unite Group Approved

Empiric Student Property PLC has announced the successful approval of a recommended cash and share acquisition by The Unite Group PLC, following a Court-sanctioned scheme of arrangement. The acquisition, which received the necessary shareholder votes at both the Court and General Meetings, is expected to enhance Unite’s market position in the student accommodation sector, pending final regulatory approvals and conditions.

Empiric Student Property Increases Share Capital

Empiric Student Property plc has announced an increase in its issued share capital to 664,183,341 Ordinary Shares as of 30 September 2025, following the issuance of additional shares under its SAYE Option Plan. This update allows shareholders to calculate their notifiable interests in the company, aligning with the FCA’s Disclosure Guidance and Transparency Rules, potentially impacting shareholder decisions and market perceptions.

Empiric Student Property Agrees to Acquisition by Unite Group

Empiric Student Property PLC has announced a recommended cash and share acquisition by The Unite Group PLC, which will see Unite acquire all issued and to be issued ordinary share capital of Empiric through a court-sanctioned scheme of arrangement. The acquisition is expected to strengthen Unite’s position in the student accommodation market, with the Empiric board unanimously recommending shareholders to vote in favor of the scheme, indicating confidence in the strategic benefits of the merger for stakeholders.