EPR Properties Common Stock (EPR)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $333 million in annual free cash flow (7.7% yield on market cap)
• Solid return on equity of 11.8% above cost of capital
• Attractive 6.4% dividend yield providing steady income returns
• FairStock composite score of 77/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

EPR Properties Common Stock is a small-cap real estate company valued at $4.3 billion. The business generates $714 million in annual revenue with a 8.5% net margin and $333 million in free cash flow. From a quality standpoint, EPR shows distressed Altman Z-Score of 0.7 warrants caution and adequate 12% ROE. On valuation, the stock is reasonably priced at 17.2x earnings, with trades above its Graham Number with a negative 18% margin. Growth dynamics show revenue growing at 5.7% and profit growth of 897.0%. The 6.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 77/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $333 million in annual free cash flow (7.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer