Phillips Edison & Company (PECO) AI Stock Analysis

• Market Cap: $4.84B
• Dividend Yield: 3.44%
• Average Volume (3M): 722.35K
• Price to Earnings (P/E): 68.7
• Beta (1Y): 0.52
• Revenue Growth: 8.57%
• EPS Growth: 6.55%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 79
• Industry: REIT - Retail
• EPS (TTM): 0.49
• Shares Outstanding: 125,371,925
• 10 Day Avg. Volume: 865,211
• 30 Day Avg. Volume: 722,354
• PEG Ratio: 10.48
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.61
• Price to Cash Flow (P/CF): 13.00
• P/FCF Ratio: 0.00
• 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: $38.50
• Price Target Upside: 10.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Phillips Edison & Company demonstrates strong operational efficiency and financial stability, with consistent revenue growth and healthy cash flow generation. The company's strategic guidance and focus on acquisitions bolster its growth prospects. However, valuation concerns due to a high P/E ratio and recent net income challenges slightly temper the overall outlook.

Positive Factors

Financial Performance

Phillips Edison & Company reported Core FFO of $0.62, which exceeded market expectations.

Guidance

The company raised its Core FFO guidance, showing expected growth and strong performance.

Negative Factors

Earnings Guidance

'25 earnings guidance was reiterated below the Street expectations.

Occupancy and Retention

There was a sequential dip in billed occupancy and lower tenant retention.

Phillips Edison & Company Business Overview & Revenue Model

Company Description

Phillips Edison & Company, Inc. (PECO), an internally-managed REIT, is one of the nation's largest owners and operators of grocery-anchored shopping centers. PECO's diversified portfolio of well-occupied neighborhood shopping centers features a mix of national and regional retailers selling necessity-based goods and services in fundamentally strong markets throughout the United States. Through its vertically-integrated operating platform, the Company manages a portfolio of 309 properties, including 283 wholly-owned properties comprising approximately 31.7 million square feet across 31 states (as of September 30, 2020). PECO has generated strong operating results over its 29+ year history and has partnered with leading institutional commercial real estate investors, including TPG Real Estate and The Northwestern Mutual Life Insurance Company. The Company remains exclusively focused on creating great grocery-anchored shopping experiences and improving the communities it serves one center at a time.

How the Company Makes Money

Phillips Edison & Company primarily generates revenue through leasing space in its portfolio of grocery-anchored shopping centers. The company earns rental income from its tenants, which include grocery stores, discount retailers, and various service providers. Additionally, PECO benefits from long-term leases with built-in rent escalations, providing a stable and predictable revenue stream. The company may also engage in property acquisitions and dispositions to optimize its portfolio and increase returns. Furthermore, PECO's focus on essential retail tenants helps ensure consistent demand, contributing to its financial stability and growth.

Phillips Edison & Company Financial Statement Overview

Summary

Phillips Edison & Company shows a steady growth trajectory with consistent revenue increases and strong operational efficiency. The absence of debt enhances financial security, though recent net income challenges highlight potential areas for improvement.

Income Statement

Phillips Edison & Company shows a steady growth trajectory with a consistent increase in total revenue over recent years. The gross profit margin and EBITDA margin remain strong, reflecting efficient operations. However, the net profit margin has fluctuated, with a notable negative net income in the latest year, which suggests potential challenges in managing costs or external factors affecting profitability.

Balance Sheet

The company exhibits a solid balance sheet with zero total debt reported in the latest year, significantly reducing financial risk. The equity ratio is stable, indicating a strong equity base relative to total assets. Return on equity has been positive in previous years, although the recent negative net income could impact ROE. Overall, the balance sheet reflects financial stability and prudent management.

Cash Flow

The cash flow statements reveal robust operating cash flow, consistently covering capital expenditures, leading to positive free cash flow. The free cash flow growth rate is positive, indicating effective cash management. The operating cash flow to net income ratio is strong, highlighting efficient conversion of earnings into cash, despite recent net income challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
661.39M	610.12M	575.37M	532.85M	498.02M
	Gross Profit
471.07M	435.00M	412.15M	374.55M	343.51M
	EBIT
172.45M	154.20M	118.53M	69.94M	86.69M
	EBITDA
418.41M	390.64M	354.75M	315.04M	315.44M
	Net Income Common Stockholders
-7.01M	56.85M	48.32M	15.12M	4.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.88M	4.87M	5.48M	92.58M	104.30M
	Total Assets
6.55B	4.87B	4.74B	4.67B	4.68B
	Total Debt
2.23B	2.08B	1.90B	2.00B	2.39B
	Net Debt
-4.88M	2.07B	1.89B	1.91B	2.29B
	Total Liabilities
2.41B	2.21B	2.14B	2.19B	2.66B
	Stockholders Equity
2.32B	2.31B	2.24B	2.15B	1.69B
Cash Flow		Free Cash Flow
239.63M	195.71M	186.40M	187.87M	146.61M
	Operating Cash Flow
334.71M	290.97M	290.89M	262.90M	210.58M
	Investing Cash Flow
-392.94M	-353.39M	-331.25M	-180.49M	-44.09M
	Financing Cash Flow
58.01M	53.95M	-57.83M	-98.82M	-129.66M

Phillips Edison & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.98
• 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 PECO, the sentiment is Negative. The current price of 34.98 is below the 20-day moving average (MA) of 35.53, below the 50-day MA of 36.01, and below the 200-day MA of 36.00, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 79.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PECO.

Phillips Edison & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCPT	79 Outperform	$2.77B	25.92	7.43%	5.05%	6.96%	-0.41%
PECO	72 Outperform	$4.84B	68.67	2.71%	3.44%	8.57%	6.55%
BRX	70 Outperform	$7.33B	21.51	11.61%	4.61%	3.41%	10.54%
SKT	68 Neutral	$3.46B	34.80	16.02%	3.59%	13.29%	-4.51%
KRG	64 Neutral	$4.57B	1,124.32	0.52%	4.95%	2.42%	-91.46%
Sector *	61 Neutral	$4.43B	16.13	-3.23%	11.37%	6.25%	-21.19%
MAC	53 Neutral	$3.81B	―	-7.50%	4.68%	4.88%	-66.88%

Phillips Edison & Company Corporate Events

Phillips Edison & Co. Declares Upcoming Monthly Dividends

Phillips Edison & Company announced that its Board of Directors declared monthly dividend distributions of $0.1025 per share for March and April 2025, payable on April 1 and May 1 respectively. This decision reflects the company’s ongoing commitment to returning value to its stockholders and maintaining its financial stability, with operating partnership unit holders receiving distributions at the same rate as common stockholders.

Phillips Edison Reports Strong 2024 Financial Growth

On February 6, 2025, Phillips Edison & Company announced its financial results for the fourth quarter and full year of 2024, demonstrating significant growth. The company reported a net income of $62.7 million for the year and highlighted a 5.3% growth in Nareit FFO per share and a 3.8% growth in Core FFO per share compared to 2023. The company also announced the acquisition of fourteen shopping centers and four land parcels for a total of $305.7 million in 2024, with plans to continue expansion in 2025. The occupancy rates remained high, and leasing activity was robust, with significant rent spreads for new and renewal leases, positioning the company strongly within its industry.