Empire State Realty Trust, Inc. Fundamental Analysis (NYSE: ESRT)
Empire State Realty Trust, Inc. Fundamental Analysis (NYSE: ESRT)
Empire State Realty Trust, Inc. (NYSE: ESRT) shows weak financial fundamentals with a PE ratio of -1088.54, profit margin of 0.30%, and ROE of 0.23%. The company generates $0.8B in annual revenue with weak year-over-year growth of 0.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ESRT's fundamental strength across five key dimensions:
Efficiency Score
WeakESRT struggles to generate sufficient returns from assets.
Valuation Score
ModerateESRT shows balanced valuation metrics.
Growth Score
WeakESRT faces weak or negative growth trends.
Financial Health Score
ModerateESRT shows balanced financial health with some risks.
Profitability Score
ModerateESRT maintains healthy but balanced margins.
Key Financial Metrics
Is ESRT Expensive or Cheap?
P/E Ratio
ESRT trades at -1088.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ESRT's PEG of 10.65 indicates potential overvaluation.
Price to Book
The market values Empire State Realty Trust, Inc. at 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.00 times EBITDA. This is generally considered low.
How Well Does ESRT Make Money?
Net Profit Margin
For every $100 in sales, Empire State Realty Trust, Inc. keeps $0.30 as profit after all expenses.
Operating Margin
Core operations generate 16.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.23 in profit for every $100 of shareholder equity.
ROA
Empire State Realty Trust, Inc. generates $0.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Empire State Realty Trust, Inc. produces operating cash flow of $184.88M, showing steady but balanced cash generation.
Free Cash Flow
Empire State Realty Trust, Inc. produces free cash flow of $61.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
ESRT converts 6.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1088.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ESRT Stacks Against Its Sector Peers
| Metric | ESRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1088.54 | 25.26 | Better (Cheaper) |
| ROE | 0.23% | 722.00% | Weak |
| Net Margin | 0.30% | 2077.00% | Weak |
| Debt/Equity | 2.17 | -37.25 (disorted) | Distorted |
| Current Ratio | 1.84 | 91.70 | Neutral |
| ROA | 0.06% | 270.00% | Weak |
ESRT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Empire State Realty Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.07%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
495.31%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
42.00%
Industry Style: Income, Inflation Hedge, REIT
High Growth