Phillips Edison & Company (PECO) AI Stock Analysis

• Market Cap: $4.72B
• Dividend Yield: 3.59%
• Average Volume (3M): 925.77K
• Price to Earnings (P/E): 64.8
• Beta (1Y): 0.39
• Revenue Growth: 10.31%
• EPS Growth: 14.39%
• Country: US
• Employees: 300
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Retail
• EPS (TTM): 0.10
• Shares Outstanding: 125,600,000
• 10 Day Avg. Volume: 997,223
• 30 Day Avg. Volume: 925,771
• 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: 1.62
• Enterprise Value/Revenue: 11.05
• Enterprise Value/Gross Profit: 15.51
• Enterprise Value/Ebitda: 17.16
• 1Y Price Target: $38.43
• Price Target Upside: 13.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $37.00 ▲(9.50% Upside)

Phillips Edison & Company's strong financial performance and positive earnings call are significant strengths, contributing to a solid overall score. However, technical indicators suggest bearish trends, and the high P/E ratio indicates potential overvaluation. The company's robust dividend yield and increased earnings guidance provide additional support for the stock's attractiveness.

Positive Factors

Acquisitions

PECO's robust acquisition pipeline and healthy leasing spreads are driving positive business improvements.

Financial Performance

Core earnings beat expectations, indicating strong financial performance.

Negative Factors

Economic Occupancy

Economic occupancy dipped compared to the previous year, reflecting some challenges in maintaining tenant levels.

Occupancy

Leased occupancy declined by 60 basis points quarter-over-quarter 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 demonstrates 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, although free cash flow growth has recently declined.

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	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: Negative
• Last Price: 33.79
• 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 33.79 is below the 20-day moving average (MA) of 33.85, below the 50-day MA of 34.43, and below the 200-day MA of 35.57, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 75.40 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	76 Outperform	$2.68B	23.84	7.73%	5.44%	6.28%	1.21%
SKT	75 Outperform	$3.73B	37.33	16.78%	3.44%	10.59%	-1.83%
BRX	75 Outperform	$8.27B	24.71	11.52%	4.20%	5.98%	12.11%
PECO	71 Outperform	$4.72B	64.78	3.01%	3.59%	10.31%	14.39%
KRG	66 Neutral	$4.87B	28.24	5.53%	4.86%	4.03%	―
Sector *	65 Neutral	$2.04B	16.92	4.00%	5.06%	1.74%	-1.63%
MAC	55 Neutral	$4.58B	―	-19.00%	3.95%	4.53%	40.88%

Phillips Edison & Company Corporate Events

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.