EastGroup Properties, Inc. (EGP)
Real Estate · NYQ · US
Fundamentals
Valuation and ratings
EastGroup Properties, Inc. trades at USD223.38, close to the USD212.14 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 74 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 38.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About EastGroup Properties, Inc.
EastGroup Properties, Inc. a member of the S&P Mid-Cap 400 and Russell 2000 Indexes. It is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. East Groups portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 65.7 million square feet. EastGroup Properties, Inc. was incorporated in 1969 and is based in Ridgeland, United States.
EGP passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is EastGroup Properties, Inc. (EGP) undervalued?
Against our discounted cash flow estimate of USD212.14, EGP at USD223.38 is 5% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is EGP's P/E ratio?
EGP trades at 38.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.