Essential Properties Realty Trust, Inc. (EPRT)
Valuation Overview•Is Essential Properties Realty Trust, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 60/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
EPRT demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is driving exceptional top-line expansion (25.2% 3Y CAGR) paired with robust earnings compounding (8.9% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 65.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $160.6M | +25.0% | +25.2% | +27.9% | — | |
| EBITDA | $146.1M | — | +25.0% | — | — | |
| Net Income | $59.8M | +24.6% | +23.6% | — | — | |
| EPS (Diluted) | $0.28 | +11.3% | +8.9% | +23.8% | — | |
| Free Cash Flow | $99.8M | +23.5% | +21.8% | +30.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 84.7% | 93.9% | 95.6% | 93.0% |
| Operating Margin | 65.0% | 64.6% | 62.7% | 51.4% |
| Net Margin | 43.3% | 47.7% | 46.3% | 33.9% |
| FCF Margin | -25.5% | 69.1% | 70.7% | 63.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.32 | $0.28 | -12.5% | ||
| Q1'26 | $0.33 | $0.34 | +3.6% | ||
| Q4'25 | $0.48 | $0.33 | -31.3% | ||
| Q3'25 | $0.47 | $0.32 | -31.9% | ||
| Q2'25 | $0.46 | $0.29 | -37.0% | ||
| Q1'25 | $0.31 | $0.30 | -3.2% | ||
| Q4'24 | $0.31 | $0.27 | -12.9% | ||
| Q3'24 | $0.29 | $0.29 | +0.0% |
Total return is -6.3% (1Y), lagging the benchmark by -31.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -1.3% | -10.6% | — |
| 1Y | -6.3% | -31.3% | +3.7% |
| 3YCAGR | +10.6% | -8.7% | +14.5% |
| 5YCAGR | +5.1% | -7.8% | +20.6% |
| 10YCAGR | +10.6% | -3.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Essential Properties Realty Trust, Inc. (EPRT) valuation, health, and returns.
Essential Properties Realty Trust, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Slightly cheap versus peers compared to industry peers. trading near fair value (DCF: $29.07)
Essential Properties Realty Trust, Inc. has multiple valuation anchors: DCF Intrinsic Value: $29.07 | Peer Relative Fair Value: $33.01 | Wall Street Analyst Target: $36.75 (implying +25.2% upside). A convergence of these signals offers higher conviction.
Essential Properties Realty Trust, Inc. displays good financial health with a composite quality score of 60/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 4.4%.
Essential Properties Realty Trust, Inc. pays a 4.0% dividend yield, covered by a 92% payout ratio with 8 years of growth, supplemented by a 0.0% buyback yield.
Essential Properties Realty Trust, Inc.'s current growth trajectory is Stable. The company achieved +25.0% 1Y revenue growth and +11.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +25.2%.
Wall Street consensus is Buy based on 22 analysts, beating EPS expectations in 33% of recent quarters with a -1-quarter streak. The consensus price target represents a +25.2% change from current levels.
Investment risks for Essential Properties Realty Trust, Inc. include: -15.1% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of -0.05x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.