Phillips Edison & Company (PECO) AI Stock Analysis

• Market Cap: $5.39B
• Dividend Yield: 3.52%
• Average Volume (3M): 866.64K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.25
• Revenue Growth: 10.58%
• EPS Growth: 37.97%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.38
• Shares Outstanding: 125,800,000
• 10 Day Avg. Volume: 880,050
• 30 Day Avg. Volume: 866,637
• PEG Ratio: 0.52
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 6.03
• P/FCF Ratio: 20.84
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 10.23
• Enterprise Value/Gross Profit: 14.38
• Enterprise Value/Ebitda: 15.10
• 1Y Price Target: $39.89
• Price Target Upside: 1.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.7
• Revenue Forecast (FY): $702.61M

• Rating: 71 Outperform
• Price Target: $43.00 ▲(9.19% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 02/27/26

PECO scores well primarily due to solid fundamentals (strong margins, improving profitability, and durable cash generation) and a positive forward outlook from management’s guidance and operating metrics (NOI/FFO growth, high occupancy, strong leasing). The overall score is held back by balance-sheet leverage and a relatively expensive earnings multiple, while technicals remain supportive but somewhat stretched.

Positive Factors

High portfolio occupancy & retention

Sustained ultra‑high occupancy and retention materially reduce downtime, tenant improvement costs and vacancy risk. For a grocery-anchored REIT this underpins stable rental cash flows, predictable NOI and resilience versus cyclic retail weakness, supporting durable distributable cash.

Robust cash generation and margins

Consistent conversion of earnings into cash with expanding operating cash flow and strong property-level margins provides durable funding for dividends, capex and acquisitions. This cash-generative profile supports internal growth and limits reliance on dilutive equity over multiple years.

Solid liquidity and access to unsecured debt markets

Large committed liquidity plus successful unsecured note issuance extends maturities and lowers near-term refinancing risk. This financing flexibility enables disciplined acquisitions and redeployments within guidance, preserving capital allocation optionality without forcing equity issuance.

Negative Factors

Elevated leverage and rating constraints

Material leverage increases sensitivity to rising interest rates and credit markets, constraining rating upside and borrowing cost improvements. At ~5.2x net debt/EBITDA, capital flexibility for large bolt-on deals, buybacks or aggressive growth is limited without adding equity or extending maturities.

Elevated bad debt trends

Persistently higher bad-debt levels compress effective rents and raise uncertainty around collectability during consumer stress. Even if stable, ~78 bps of revenue is a recurring headwind to NOI and FFO growth and requires monitoring as it can erode distributable cash over time.

Intensifying competition for acquisitions

Heightened buyer competition risks yield compression and makes it harder to hit target unlevered IRRs (~9%–10%). Over time this could slow accretive portfolio growth or force higher leverage to achieve returns, pressuring long-term FFO per share upside and capital recycling benefits.

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

Strong and stable margins with improving earnings and consistently positive free cash flow support a solid operating profile. The main offset is balance-sheet risk: leverage remains meaningful and rose in 2025, increasing sensitivity to financing conditions.

Income Statement

Revenue has grown steadily from 2021–2025 (with a dip in 2020), and profitability has strengthened meaningfully as net income scaled from a low base (near breakeven in 2020) to $111M in 2025. Margins are consistently strong for the model, with gross margin ~69–72% and EBITDA margin ~60–64% across the period, indicating solid property-level economics. The main drawbacks are the relatively modest top-line growth rate in most years and some volatility in earnings level earlier in the timeline.

Balance Sheet

The balance sheet shows sizeable leverage typical of a retail REIT, with debt-to-equity generally around ~0.90–1.14 (improving from 2020’s higher leverage but rising again in 2025). Equity is meaningful (~$2.29B in 2025) and assets have grown over time, supporting scale. However, the increase in total debt in 2025 and still-moderate returns on equity (rising to ~4.9% in 2025 from low levels earlier) temper the score and point to sensitivity to financing conditions.

Cash Flow

Cash generation is solid and trending up overall: operating cash flow increased from ~$211M (2020) to ~$348M (2025), and free cash flow remains positive each year. Free cash flow growth is uneven (including a slight decline in 2022), but the business demonstrates consistent ability to convert earnings into cash, with free cash flow running at roughly 61–72% of net income over the period. A watch item is the dip in free cash flow from 2024 to 2025 despite higher earnings, suggesting higher reinvestment or working-capital/capex variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	732.30M	661.39M	610.12M	575.37M	532.85M
Gross Profit	-10.19M	471.07M	435.00M	412.15M	374.55M
EBITDA	505.75M	410.97M	380.33M	355.62M	322.15M
Net Income	111.30M	62.69M	56.85M	48.32M	15.12M
Balance Sheet
Total Assets	5.29B	5.05B	4.87B	4.74B	4.67B
Cash, Cash Equivalents and Short-Term Investments	19.90M	4.88M	13.44M	13.27M	98.14M
Total Debt	2.49B	2.11B	2.08B	2.01B	2.00B
Total Liabilities	2.70B	2.41B	2.21B	2.14B	2.19B
Stockholders Equity	2.29B	2.32B	2.31B	2.24B	2.15B
Cash Flow
Free Cash Flow	212.00M	239.63M	195.71M	186.40M	187.87M
Operating Cash Flow	348.15M	334.71M	290.97M	290.89M	262.90M
Investing Cash Flow	-392.29M	-392.94M	-353.39M	-331.25M	-180.49M
Financing Cash Flow	78.80M	58.01M	53.95M	-57.83M	-98.82M

Phillips Edison & Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 39.38 is above the 20-day moving average (MA) of 37.81, above the 50-day MA of 36.31, and above the 200-day MA of 34.66, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 73.65 is Negative, neither overbought nor oversold. The STOCH value of 75.07 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	80 Outperform	$8.45B	21.50	8.89%	6.04%	4.53%	-3.46%
ADC	79 Outperform	$9.51B	44.86	3.47%	4.28%	14.67%	-5.17%
BRX	73 Outperform	$9.14B	23.80	12.86%	4.41%	6.07%	-0.28%
PECO	71 Outperform	$5.39B	43.97	4.83%	3.52%	10.58%	37.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KRG	65 Neutral	$5.38B	19.02	9.35%	4.55%	3.67%	―
MAC	58 Neutral	$5.39B	-70.12	-18.89%	3.61%	8.06%	74.26%

Phillips Edison & Company Corporate Events

Phillips Edison Completes $350 Million Senior Notes Offering

On February 26, 2026, Phillips Edison Grocery Center Operating Partnership I, L.P., a subsidiary of Phillips Edison & Company, completed an underwritten public offering of $350 million of 4.750% senior unsecured notes due 2033, fully and unconditionally guaranteed by the parent and subject to restrictive covenants on additional indebtedness and unencumbered asset levels. The notes, sold to underwriters at 99.295% of par with interest payable semiannually starting September 15, 2026, feature standard redemption and default provisions, and are expected to generate about $346.5 million in net proceeds that the issuer plans to deploy for general corporate purposes, including refinancing existing debt, acquiring and improving properties, and funding capital expenditures and working capital needs.

The offering, launched under a February 24, 2026 underwriting agreement with a syndicate led by major investment banks, reinforces Phillips Edison’s access to the unsecured bond market and provides additional financial flexibility to manage its balance sheet. By terming out debt and potentially reducing reliance on shorter-term credit facilities and term loans, the transaction may lower refinancing risk and support the company’s continued investment in its grocery-anchored retail portfolio, with implications for lenders and noteholders tied to the covenant package and capital allocation plans.

The most recent analyst rating on (PECO) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Phillips Edison & Company stock, see the PECO Stock Forecast page.

Phillips Edison Declares Monthly Dividends Through May 2026

On February 12, 2026, Phillips Edison & Company, Inc., a major U.S. owner and operator of grocery-anchored neighborhood shopping centers, reported that its board approved monthly dividends for March, April and May 2026. The distributions are set at $0.1083 per share, with record dates on March 16, April 15 and May 15, and payments scheduled for April 1, May 1 and June 2, respectively.

Operating partnership unit holders will receive distributions at the same rate as common stockholders, subject to tax withholding. The move underscores PECO’s continued emphasis on returning capital to shareholders and unitholders, reflecting confidence in the cash generation of its grocery-anchored retail portfolio and providing income visibility for investors through mid-2026.

The most recent analyst rating on (PECO) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Phillips Edison & Company stock, see the PECO Stock Forecast page.

Phillips Edison Reports Strong Q4 and Full-Year 2025 Results

On February 5, 2026, Phillips Edison & Company reported strong financial and operating results for the fourth quarter and full year ended December 31, 2025, highlighted by net income attributable to stockholders of $47.5 million for the quarter and $111.3 million for the year, with Nareit FFO per share up 7.2% and Core FFO per share up 7.0% over 2024. Same-center NOI grew 3.2% in the fourth quarter and 3.8% for the year, while leased portfolio occupancy remained high at 97.3% and leased inline occupancy reached a record 95.1%, supported by robust leasing activity and double-digit rent spreads on both new and renewal leases. The company expanded and optimized its portfolio in 2025 by acquiring approximately $395.5 million of assets at its prorated share, including multiple grocery-anchored centers across key suburban markets, and disposing of $145.4 million of non-core assets, while ending the year with 297 properties totaling about 33.5 million square feet and maintaining liquidity of about $925.1 million and net debt to annualized adjusted EBITDAre of 5.2x. Management noted that these results, along with subsequent acquisitions completed after year-end and the issuance of 2026 guidance, position PECO to sustain mid-to-high single-digit FFO per share growth and 3%–4% same-center NOI growth, reinforcing its competitive standing in the grocery-anchored retail real estate segment and supporting confidence in continued value creation for stakeholders beyond 2026.

The most recent analyst rating on (PECO) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Phillips Edison & Company stock, see the PECO Stock Forecast page.

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.

The most recent analyst rating on (PECO) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Phillips Edison & Company stock, see the PECO Stock Forecast page.