Phillips Edison & Company (PECO) AI Stock Analysis

• Market Cap: $4.95B
• Dividend Yield: 3.51%
• Average Volume (3M): 846.92K
• Price to Earnings (P/E): 58.3
• Beta (1Y): 0.27
• Revenue Growth: 10.58%
• EPS Growth: 37.97%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.20
• Shares Outstanding: 125,800,000
• 10 Day Avg. Volume: 1,203,341
• 30 Day Avg. Volume: 846,920
• PEG Ratio: 11.77
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 19.24
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $39.60
• Price Target Upside: 10.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.61
• Revenue Forecast (FY): $674.26M

• Rating: 75 Outperform
• Price Target: $41.00 ▲(14.69% Upside)

Phillips Edison & Company is financially strong with robust revenue growth and a solid balance sheet. The technical indicators show positive momentum, although the stock may be nearing overbought levels. Valuation is a concern due to a high P/E ratio, but the company’s positive earnings call and corporate events support a stable outlook.

Positive Factors

Strong Leasing Performance

High rent spreads indicate strong demand and pricing power, enhancing long-term revenue potential and competitive positioning.

High Occupancy Rates

Sustained high occupancy rates reflect effective property management and tenant retention, ensuring stable cash flows.

Robust Financial Position

Strong liquidity and manageable debt maturities enhance financial flexibility, supporting growth and acquisition strategies.

Negative Factors

Decline in Free Cash Flow

Decreasing free cash flow may limit the company's ability to fund new investments or return capital to shareholders.

Moderate Same-Center NOI Growth

Slower NOI growth could signal challenges in increasing property income, affecting overall profitability.

Potential Interest Rate Exposure

Exposure to rising interest rates could increase financial costs, impacting net income and cash flow stability.

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

PECO generates revenue primarily through rental income from its portfolio of grocery-anchored shopping centers. The company leases space to a variety of retailers, with a focus on essential services that maintain high foot traffic. Key revenue streams include base rents from tenants, percentage rents based on tenants' sales performance, and income from leasing ancillary spaces such as kiosks or outparcels. Additionally, PECO benefits from strategic partnerships with national grocery chains, which not only secure long-term leases but also drive consistent consumer traffic to their properties. The company's focus on maintaining a strong occupancy rate and enhancing property value through effective management also contributes to its overall profitability.

Phillips Edison & Company Financial Statement Overview

Summary

Phillips Edison & Company demonstrates strong revenue growth and profitability, supported by a solid balance sheet with low leverage. While cash flow generation is strong, the recent decline in free cash flow growth warrants attention. Overall, the company is well-positioned financially with a stable outlook.

Income Statement

Phillips Edison & Company shows strong revenue growth with an 18.56% increase in TTM, supported by a solid gross profit margin of 75.11%. The net profit margin is healthy at 10.46%, indicating efficient cost management. However, the EBIT margin has decreased from previous years, suggesting potential operational cost pressures.

Balance Sheet

The company has significantly reduced its debt, leading to a low debt-to-equity ratio of 0.05, which enhances financial stability. The return on equity is modest at 3.75%, reflecting moderate profitability. The equity ratio is strong, indicating a solid capital structure.

Cash Flow

Operating cash flow is robust, with a high operating cash flow to net income ratio of 14.79. However, free cash flow has declined by 11.18%, which could impact future investment capabilities. The free cash flow to net income ratio remains healthy at 59.79%, indicating good cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	823.60M	661.39M	610.12M	575.37M	532.85M	498.02M
Gross Profit	618.60M	471.07M	435.00M	412.15M	374.55M	343.51M
EBITDA	451.77M	410.97M	380.33M	355.62M	322.15M	298.95M
Net Income	86.17M	62.69M	56.85M	48.32M	15.12M	4.77M
Balance Sheet
Total Assets	5.26B	5.05B	4.87B	4.74B	4.67B	4.68B
Cash, Cash Equivalents and Short-Term Investments	20.32M	4.88M	13.44M	13.27M	98.14M	104.30M
Total Debt	2.50B	2.11B	2.08B	2.01B	2.00B	2.39B
Total Liabilities	2.68B	2.41B	2.21B	2.14B	2.19B	2.66B
Stockholders Equity	2.28B	2.32B	2.31B	2.24B	2.15B	1.69B
Cash Flow
Free Cash Flow	200.93M	239.63M	195.71M	186.40M	187.87M	146.61M
Operating Cash Flow	336.09M	334.71M	290.97M	290.89M	262.90M	210.58M
Investing Cash Flow	-508.63M	-392.94M	-353.39M	-331.25M	-180.49M	-44.09M
Financing Cash Flow	169.02M	58.01M	53.95M	-57.83M	-98.82M	-129.66M

Phillips Edison & Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 35.75 is above the 20-day moving average (MA) of 35.21, above the 50-day MA of 34.64, and above the 200-day MA of 34.39, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 62.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PECO.

Phillips Edison & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NNN	78 Outperform	$7.50B	18.71	8.91%	6.04%	4.53%	-3.46%
PECO	75 Outperform	$4.95B	58.33	3.62%	3.51%	10.58%	37.97%
ADC	75 Outperform	$8.31B	42.14	3.47%	4.28%	14.67%	-5.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BRX	65 Neutral	$7.98B	24.17	11.36%	4.41%	6.07%	-0.28%
KRG	61 Neutral	$5.18B	211.21	4.71%	4.52%	3.67%	―
MAC	55 Neutral	$4.98B	―	-18.43%	3.64%	8.06%	74.26%

Phillips Edison & Company Corporate Events

Phillips Edison Updates 2025 Financial Guidance Amid Growth

Phillips Edison & Company has announced updates to its 2025 financial guidance and introduced preliminary guidance for 2026 in alignment with its upcoming virtual Business Update on December 17, 2025. The updated 2025 guidance reflects slight adjustments to earnings per share (EPS) and acquisitions activity, while forecasts for 2026 indicate growth in net income and portfolio activity. These updates underscore the company’s ongoing focus on portfolio expansion and operational stability, potentially benefiting its stakeholders and reinforcing its position in the competitive retail real estate sector.

Phillips Edison Announces Dividend Distributions for 2025-2026

On November 5, 2025, Phillips Edison & Company announced the approval of monthly dividend distributions for November and December 2025, as well as January and February 2026, at a rate of $0.1083 per share. These distributions reflect the company’s ongoing commitment to providing returns to its stockholders and operating partnership unit holders, reinforcing its position as a leading player in the grocery-anchored shopping center industry.

Phillips Edison & Co. Reports Strong Q3 Results

On October 23, 2025, Phillips Edison & Company announced its third quarter results for the period ending September 30, 2025, reporting a net income of $24.7 million, or $0.20 per diluted share. The company also increased its full-year earnings guidance, reflecting a strong demand for grocery-anchored shopping centers. The company reported a 6.8% year-over-year growth in Nareit FFO and a 6.6% growth in Core FFO, with a strong leased portfolio occupancy of 97.6%. The company executed leases with record-high rent spreads and continued its acquisition strategy, acquiring $21.9 million in assets during the quarter and $74.2 million in assets subsequent to the quarter end.