Essential Properties Realty Trust Inc. Common Stock (EPRT)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $301 million in annual free cash flow (4.5% yield on market cap)
• Healthy net profit margin of 10.7% showing consistent profitability
• Revenue growth of 22.8% demonstrates strong top-line momentum
• Attractive 3.9% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Essential Properties Realty Trust Inc. Common Stock is a small-cap real estate company valued at $6.7 billion. The business generates $561 million in annual revenue with a 10.7% net margin and $301 million in free cash flow. From a quality standpoint, Essential shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is reasonably priced at 24.6x earnings, with trades above its Graham Number with a negative 31% margin. Growth dynamics show revenue growing at 22.8% and profit growth of 6.6%. The 3.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Essential's 23% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $301 million in annual free cash flow (4.5% 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