Phillips Edison & Company (PECO) AI Stock Analysis

• Market Cap: $4.95B
• Dividend Yield: 3.46%
• Average Volume (3M): 923.74K
• Price to Earnings (P/E): 67.8
• Beta (1Y): 0.37
• Revenue Growth: 10.31%
• EPS Growth: 14.39%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Retail
• EPS (TTM): 0.10
• Shares Outstanding: 125,600,000
• 10 Day Avg. Volume: 725,431
• 30 Day Avg. Volume: 923,744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 11.05
• Enterprise Value/Gross Profit: 15.51
• Enterprise Value/Ebitda: 17.16
• 1Y Price Target: $38.50
• Price Target Upside: 8.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $39.00 ▲(9.70% Upside)

Phillips Edison & Company demonstrates strong financial performance and positive earnings call sentiment, driving a solid stock score. While technical indicators suggest caution due to potential overbought conditions, the company's robust cash flow and increased earnings guidance support a favorable outlook. Valuation concerns due to a high P/E ratio are mitigated by a reasonable dividend yield.

Positive Factors

Strong Financial Performance

The consistent growth in key financial metrics like NOI and FFO per share indicates robust operational efficiency and a strong market position, which supports long-term financial health and investor confidence.

High Occupancy Rates

Maintaining high occupancy rates reflects strong demand for PECO's retail spaces, ensuring steady rental income and enhancing the company's stability and attractiveness to investors.

Strong Liquidity Position

A strong liquidity position enables PECO to pursue strategic acquisitions and investments, providing flexibility to capitalize on growth opportunities and withstand economic fluctuations.

Negative Factors

Increased Bad Debt

Rising bad debt levels can strain financial resources and indicate potential challenges in tenant creditworthiness, impacting cash flow and profitability if not managed effectively.

Potential Tariff Impact

Tariff impacts on tenants could lead to increased costs and reduced profitability for them, potentially affecting their ability to meet lease obligations and impacting PECO's revenue.

Deceleration in Same-Store NOI Growth

A slowdown in same-store NOI growth could signal challenges in maintaining growth momentum, affecting future revenue projections and investor sentiment if not addressed.

Phillips Edison & Company Business Overview & Revenue Model

Company Description

Phillips Edison & Company (PECO) is a leading real estate investment trust (REIT) that specializes in the ownership and management of grocery-anchored shopping centers across the United States. The company focuses on retail properties that are strategically located in densely populated areas, providing essential goods and services. PECO's core offerings include property leasing, asset management, and strategic development, catering to both national and local retailers.

How the Company Makes Money

Phillips Edison & Company generates revenue primarily through the leasing of retail spaces within its grocery-anchored shopping centers. The company earns rental income from long-term leases with tenants, which often include supermarkets, drugstores, and various service-oriented retailers. Additionally, PECO benefits from percentage rents, where tenants pay a portion of their sales as rent, especially during high-performing periods. Other revenue streams include property management fees and income generated from the sale of non-core assets. The company's strong relationships with national retailers and its focus on high-traffic locations contribute to its financial stability and growth. Furthermore, strategic partnerships and joint ventures can enhance its portfolio and expand its reach in the retail market.

Phillips Edison & Company Financial Statement Overview

Summary

Phillips Edison & Company exhibits solid financial health with consistent revenue growth, strong profitability margins, and effective cash flow management. The balance sheet shows moderate leverage, but the company maintains a stable capital structure. Improvement in net profit margins and return on equity could enhance financial performance further.

Income Statement

Phillips Edison & Company shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 2.31%. The company maintains strong profitability metrics, including a gross profit margin of 71.26% and an EBITDA margin of 64.39% for the TTM. However, the net profit margin is relatively modest at 9.91%, indicating room for improvement in net income efficiency.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 1.10, suggesting a balanced approach to leveraging. Return on equity is modest at 3.00%, indicating potential for improved profitability. The equity ratio stands at 43.45%, reflecting a stable capital structure.

Cash Flow

Phillips Edison & Company demonstrates strong cash flow management, with a significant free cash flow growth rate of 93.90% in the TTM. The operating cash flow to net income ratio is robust at 14.02, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 64.68% further underscores strong cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	694.64M	661.39M	610.12M	575.37M	532.85M	498.02M
Gross Profit	494.97M	471.07M	435.00M	412.15M	374.55M	343.51M
EBITDA	447.29M	425.46M	390.64M	366.91M	322.15M	298.95M
Net Income	68.84M	62.69M	56.85M	48.32M	15.12M	4.77M
Balance Sheet
Total Assets	5.27B	5.05B	4.87B	4.74B	4.67B	4.68B
Cash, Cash Equivalents and Short-Term Investments	5.59M	12.30M	4.87M	5.48M	115.53M	104.30M
Total Debt	2.51B	2.23B	2.08B	2.01B	2.00B	2.39B
Total Liabilities	2.68B	2.41B	2.21B	2.14B	2.19B	2.66B
Stockholders Equity	2.29B	2.32B	2.31B	2.24B	2.15B	1.69B
Cash Flow
Free Cash Flow	226.22M	239.63M	195.71M	186.40M	187.87M	146.61M
Operating Cash Flow	349.77M	334.71M	290.97M	290.89M	262.90M	210.58M
Investing Cash Flow	-578.83M	-392.94M	-353.39M	-331.25M	-180.49M	-44.09M
Financing Cash Flow	227.28M	58.01M	53.95M	-57.83M	-98.82M	-129.66M

Phillips Edison & Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.55
• 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 35.55 is above the 20-day moving average (MA) of 34.79, above the 50-day MA of 34.47, and above the 200-day MA of 35.41, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 59.03 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	75 Outperform	$8.06B	20.29	9.18%	5.48%	4.82%	-5.18%
BRX	75 Outperform	$8.51B	25.43	11.52%	4.08%	5.98%	12.11%
ADC	74 Outperform	$8.04B	43.31	3.44%	4.24%	13.27%	-5.92%
PECO	74 Outperform	$4.95B	67.85	3.01%	3.46%	10.31%	14.39%
KRG	66 Neutral	$5.02B	29.08	5.53%	4.74%	4.03%	―
Sector *	63 Neutral	$7.03B	13.25	-0.30%	6.93%	4.01%	-25.47%
MAC	55 Neutral	$4.72B	―	-19.00%	3.76%	4.53%	40.88%

Phillips Edison & Company Corporate Events

Phillips Edison & Company Increases Monthly Dividends

On September 2, 2025, Phillips Edison & Company announced a 5.7% increase in its monthly dividend distributions for October and November 2025, reflecting the company’s continued strong operating performance and cash flow growth. This marks the fifth consecutive annual increase in dividend distributions, highlighting PECO’s ability to deliver solid growth and create long-term value for shareholders.

Phillips Edison Announces August 2025 Dividend Distribution

On August 5, 2025, Phillips Edison & Company announced that its Board of Directors approved a monthly dividend distribution of $0.1025 per share for August 2025, payable on September 3, 2025, to stockholders of record as of August 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and maintaining its position as a leading player in the grocery-anchored shopping center industry.

Phillips Edison Updates REIT Tax Considerations

On February 7, 2025, Phillips Edison & Company, Inc. filed a Registration Statement with the SEC, updating its U.S. federal income tax considerations for its REIT status. The filing emphasizes the complexities and potential changes in tax laws affecting REIT qualifications and the implications for stakeholders, including the possibility of retroactive changes impacting tax treatment.

Phillips Edison Reports Strong Q2 2025 Financial Results

On July 24, 2025, Phillips Edison & Company reported its second-quarter 2025 financial results, highlighting a net income of $12.8 million and increased full-year earnings guidance. The company achieved a 4.2% growth in same-center NOI and reported strong occupancy rates, reflecting robust retailer demand and effective operational strategies. The company also completed significant acquisitions and a public debt offering, positioning itself for continued growth despite macroeconomic uncertainties.

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.