ESSESS
US • —
$295.17
P/E
33.20
PEG
—
FCF Yield
—
Rev Growth YoY
+5.3% YoY
Gross Margin
70.6%
Health Score
6/10
D/E Ratio
1.23
Confidence
MEDIUM
Business Snapshot
Essex Property Trust (ESS) is a real estate investment trust (REIT) primarily focused on the ownership, operation, management, and acquisition of multifamily residential properties. The company concentrates its portfolio in West Coast markets, including Southern California, the San Francisco Bay Area, and the Seattle metropolitan area, positioning it as a significant owner and operator in these supply-constrained regions. With TTM revenue not provided, the company's market capitalization is not available to definitively classify its cap tier, though its $295 share price suggests a large-cap profile. A defining characteristic of Essex is its West Coast-focused strategy, which leverages high barriers to entry and long-term demographic demand in its core markets.
Financial Health
Gross margin stands at a robust 70.6%, though a prior-year comparison is not available to determine the trend. Net margin for the trailing twelve months is 30.0%, reflecting a REIT's typical ability to convert a significant portion of revenue into profit after property-level and interest expenses...
Risk Assessment
- VALUATION — P/E of 33.2x trades at a substantial premium to the sector average of 22x, pricing in high expectations.
- EARNINGS QUALITY — Earnings declined by 15.0% year-over-year, creating a divergence with modest revenue growth and questioning earnings quality.
- DEBT / LIQUIDITY — Current ratio of 0.71x indicates that current assets are insufficient to cover short-term liabilities, a potential liquidity risk.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is not provided or is negative, preventing an assessment of the company's ability to fund operations or dividends organically....
Gross margin stands at a robust 70.6%, though a prior-year comparison is not available to determine the trend. Net margin for the trailing twelve months is 30.0%, reflecting a REIT's typical ability to convert a significant portion of revenue into profit after property-level and interest expenses. The balance sheet carries a Debt/Equity ratio of 1.23x, indicating a moderate use of leverage, but is stretched from a liquidity standpoint with a Current Ratio of 0.71x, meaning current assets do not cover short-term liabilities. Free cash flow data is not available, making it impossible to assess whether the company generates excess cash for dividends or reinvestment after capital expenditures. Overall, while profitability margins are strong and leverage is manageable, the low current ratio and missing cash flow data introduce caution regarding near-term financial flexibility.
- VALUATION — P/E of 33.2x trades at a substantial premium to the sector average of 22x, pricing in high expectations. - EARNINGS QUALITY — Earnings declined by 15.0% year-over-year, creating a divergence with modest revenue growth and questioning earnings quality. - DEBT / LIQUIDITY — Current ratio of 0.71x indicates that current assets are insufficient to cover short-term liabilities, a potential liquidity risk. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is not provided or is negative, preventing an assessment of the company's ability to fund operations or dividends organically.
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