Phillips Edison & Company (PECO) AI Stock Analysis

• Market Cap: $4.75B
• Dividend Yield: 3.58%
• Average Volume (3M): 812.16K
• Price to Earnings (P/E): 61.4
• Beta (1Y): 0.37
• Revenue Growth: 9.27%
• EPS Growth: 19.51%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Retail
• EPS (TTM): 0.21
• Shares Outstanding: 125,400,000
• 10 Day Avg. Volume: 743,645
• 30 Day Avg. Volume: 812,163
• PEG Ratio: 0.42
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.71
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 15.14
• Enterprise Value/Ebitda: 3.81
• 1Y Price Target: $38.14
• Price Target Upside: 11.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $39.00 ▲(13.54%Upside)

Phillips Edison & Company's strong earnings call with high occupancy and robust leasing spreads positively impacts the overall score. Financial performance shows solid operational efficiency, though profitability and leverage management need improvement. Technical analysis indicates bearish momentum, and valuation suggests caution due to a high P/E ratio. The combination of these factors results in an overall stock score of 70.

Positive Factors

Earnings Performance

Reported NAREIT FFO/sh exceeded consensus expectations.

Leasing Activity

Leasing demand remains strong with no signs of slowdown at the current time.

Negative Factors

Earnings Guidance

'25 earnings guidance was reiterated below the Street expectations.

Occupancy Challenges

Leased occupancy declined -60bps Q/Q to 97.1% due to known bankruptcies.

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 generates revenue primarily through the leasing of retail space in their grocery-anchored shopping centers. The company's primary revenue streams include rental income from tenants, which often consist of long-term leases with built-in rent escalations, and additional income from common area maintenance fees and other property-related services. PECO aims to maintain high occupancy rates and attract a diverse mix of national, regional, and local tenants to ensure stable and reliable cash flows. The company's earnings are also supported by its strategic acquisitions and dispositions of properties, which help optimize its portfolio. Partnerships with grocery chains and other retail entities enhance the value of their properties, contributing to increased foot traffic and tenant demand.

Phillips Edison & Company Financial Statement Overview

Summary

Phillips Edison & Company exhibits strong revenue growth and operational efficiency, with high gross and EBITDA margins. The balance sheet is stable but shows moderate leverage and modest returns on equity. Cash flow management is excellent, with high cash flow to net income ratios, although recent free cash flow growth has declined. The focus should be on enhancing profitability and managing leverage.

Income Statement

Phillips Edison & Company shows a consistent upward trend in revenue, with a notable revenue growth rate of 11.28% from 2023 to 2024 and 2.66% in TTM 2025. Gross profit margin remains strong at around 62.14% in TTM 2025. However, net profit margin is low, standing at 6.25% in TTM 2025, indicating relatively high operational costs. The EBIT margin of 26.11% and EBITDA margin of 63.98% in TTM 2025 highlight solid operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with an equity ratio of 34.61% in TTM 2025, indicating a sound capital structure. The debt-to-equity ratio is 1.04, reflecting moderate leverage. Return on equity is modest at 1.84% in TTM 2025, suggesting room for improvement in generating returns on equity.

Cash Flow

Phillips Edison & Company demonstrates robust cash flow management with a high operating cash flow to net income ratio of 7.84 in TTM 2025, indicating strong cash generation relative to net income. Free cash flow to net income ratio is also favorable at 5.28, showing efficient cash utilization. The free cash flow growth rate, however, is negative at -6.49% from 2024 to TTM 2025, pointing to potential pressures on free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	678.99M	661.39M	610.12M	575.37M	532.85M	498.02M
Gross Profit	421.87M	471.07M	435.00M	412.15M	374.55M	343.51M
EBITDA	434.50M	425.46M	390.64M	354.75M	315.04M	315.44M
Net Income	71.32M	62.69M	56.85M	48.32M	15.12M	4.77M
Balance Sheet
Total Assets	4.89B	6.55B	4.87B	4.74B	4.67B	4.68B
Cash, Cash Equivalents and Short-Term Investments	10.10M	12.30M	4.87M	5.48M	92.58M	104.30M
Total Debt	2.13B	2.23B	2.08B	1.90B	2.00B	2.39B
Total Liabilities	2.25B	2.41B	2.21B	2.14B	2.19B	2.66B
Stockholders Equity	2.30B	2.32B	2.31B	2.24B	2.15B	1.69B
Cash Flow
Free Cash Flow	224.12M	239.63M	195.71M	186.40M	187.87M	146.61M
Operating Cash Flow	332.63M	334.71M	290.97M	290.89M	262.90M	210.58M
Investing Cash Flow	-490.38M	-392.94M	-353.39M	-331.25M	-180.49M	-44.09M
Financing Cash Flow	155.50M	58.01M	53.95M	-57.83M	-98.82M	-129.66M

Phillips Edison & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 34.35 is below the 20-day moving average (MA) of 35.20, below the 50-day MA of 35.21, and below the 200-day MA of 36.08, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 17.28 is Positive, 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	78 Outperform	$2.69B	25.05	7.62%	5.30%	6.20%	0.28%
SKT	73 Outperform	$3.54B	37.01	15.89%	3.72%	12.38%	-6.36%
BRX	71 Outperform	$7.81B	24.35	10.99%	4.51%	4.58%	12.65%
PECO	70 Outperform	$4.75B	61.41	3.09%	3.58%	9.27%	19.51%
KRG	69 Neutral	$4.98B	367.69	0.81%	4.81%	4.37%	-75.82%
MAC	66 Neutral	$4.25B	―	-4.79%	4.20%	9.58%	-3.85%
Sector *	63 Neutral	$6.92B	18.42	-1.93%	6.88%	4.65%	-25.39%

Phillips Edison & Company Corporate Events

Phillips Edison & Company Completes $350 Million Senior Notes Offering

On June 17, 2025, Phillips Edison Grocery Center Operating Partnership I, L.P., a subsidiary of Phillips Edison & Company, completed a public offering of $350 million in senior notes due 2032, guaranteed by the parent company and its subsidiaries. The proceeds, estimated at $346.2 million after expenses, will be used for general corporate purposes, including debt repayment and property acquisitions, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (PECO) stock is a Hold with a $37.00 price target. To see the full list of analyst forecasts on Phillips Edison & Company stock, see the PECO Stock Forecast page.

Phillips Edison & Company Holds Annual Stockholders Meeting

On May 1, 2025, Phillips Edison & Company held its annual meeting of stockholders, where all ten directors were re-elected, executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent auditor for 2025. Additionally, the company declared monthly dividend distributions of $0.1025 per share for May, June, and July 2025, reflecting its commitment to returning value to shareholders.

Phillips Edison Reports Strong Q1 2025 Financial Results

On April 24, 2025, Phillips Edison & Company reported its financial results for the first quarter of 2025, showing strong performance with a net income of $26.3 million and significant growth in funds from operations. The company affirmed its full-year earnings guidance, highlighting a 3.9% increase in same-center net operating income and strong leasing activity. The company acquired six shopping centers and extended its revolving credit facility, positioning itself for continued growth and stability in the grocery-anchored retail sector.