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CDP Stock Analysis - COPT DEFENSE PROPERTIES AI Rating

CDP NYSE Real Estate Investment Trusts MD CIK: 0000860546
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 CDP Key Takeaways

Revenue: $763.9M
Net Margin: 19.9%
Free Cash Flow: $309.9M
Current Ratio: N/A
Debt/Equity: 1.83x
EPS: $1.34
AI Rating: HOLD with 62% confidence

Investment Thesis

COPT Defense Properties demonstrates strong fundamental operational performance with robust profitability margins (19.9% net margin) and exceptional free cash flow generation ($309.9M, 40.6% FCF margin). However, the extraordinary 1715.7% revenue growth is anomalous and requires investigation into one-time events or accounting adjustments, while elevated leverage (1.83x D/E) and modest ROA (3.2%) temper growth quality concerns.

CDP Strengths

  • + Exceptional free cash flow generation at $309.9M with 40.6% FCF margin provides strong capital deployment capacity
  • + High net profit margin of 19.9% demonstrates operational efficiency and pricing power in defense real estate
  • + Solid interest coverage ratio of 5.4x indicates manageable debt servicing ability despite elevated leverage
  • + Positive EPS growth of 8.9% YoY suggests underlying operational improvements

CDP Risks

  • ! Extraordinary 1715.7% revenue growth is unsustainable and suggests one-time gains or acquisitions; organic growth clarity is lacking
  • ! Elevated debt-to-equity ratio of 1.83x combined with $2.8B long-term debt represents significant financial leverage risk
  • ! Low return on assets (3.2%) and modest ROE (10.0%) indicate capital is not being deployed with optimal efficiency
  • ! Net income declined 4.9% YoY despite massive revenue growth, signaling margin compression or integration challenges

Key Metrics to Watch

CDP Financial Metrics

Revenue
$763.9M
Net Income
$151.7M
EPS (Diluted)
$1.34
Free Cash Flow
$309.9M
Total Assets
$4.7B
Cash Position
$275.0M

💡 AI Analyst Insight

The 40.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

CDP Profitability Ratios

Gross Margin N/A
Operating Margin 14.6%
Net Margin 19.9%
ROE 10.0%
ROA 3.2%
FCF Margin 40.6%

CDP vs Default Sector

How COPT DEFENSE PROPERTIES compares to Default sector averages

Net Margin
CDP 19.9%
vs
Sector Avg 12.0%
CDP Sector
ROE
CDP 10.0%
vs
Sector Avg 15.0%
CDP Sector
Current Ratio
CDP 0.0x
vs
Sector Avg 1.8x
CDP Sector
Debt/Equity
CDP 1.8x
vs
Sector Avg 0.7x
CDP Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CDP Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.83x
Debt/Assets
66.2%
Interest Coverage
5.37x
Long-term Debt
$2.8B

CDP 5-Year Financial Trend

CDP 5-year financial data: Year 2021: Revenue $113.8M, Net Income $24.1M, EPS $1.71. Year 2022: Revenue $154.6M, Net Income N/A, EPS $0.87. Year 2023: Revenue $154.6M, Net Income N/A, EPS $0.68. Year 2024: Revenue $154.6M, Net Income N/A, EPS $1.53. Year 2025: Revenue $75.6M, Net Income N/A, EPS $-0.67.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: COPT DEFENSE PROPERTIES's revenue has declined by 34% over the 5-year period, indicating business contraction. The most recent EPS of $-0.67 indicates the company is currently unprofitable.

CDP Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
40.6%
Free cash flow / Revenue

CDP Quarterly Performance

Quarterly financial performance data for COPT DEFENSE PROPERTIES including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $8.5M $37.4M $0.32
Q2 2025 $12.5M $36.4M $0.31
Q1 2025 $10.3M $33.7M $0.29
Q3 2024 $11.9M $37.4M $0.32
Q2 2024 $14.2M $31.6M $0.27
Q1 2024 $15.8M $33.7M $0.29
Q3 2023 $11.9M $32.3M $0.27
Q2 2023 $14.2M $31.6M $0.27

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CDP Capital Allocation

Operating Cash Flow
$309.9M
Cash generated from operations
Stock Buybacks
$2.4M
Shares repurchased (TTM)
Dividends Paid
$136.6M
Returned to shareholders

CDP SEC Filings

Access official SEC EDGAR filings for COPT DEFENSE PROPERTIES (CIK: 0000860546)

📋 Recent SEC Filings

Date Form Document Action
Mar 4, 2026 4 xslF345X05/form4-03042026_070328.xml View →
Mar 3, 2026 4 xslF345X05/form4-03032026_100335.xml View →
Mar 3, 2026 4 xslF345X05/form4-03032026_100305.xml View →
Mar 3, 2026 4 xslF345X05/form4-03032026_100324.xml View →
Mar 3, 2026 4 xslF345X05/form4-03032026_090317.xml View →

Frequently Asked Questions about CDP

What is the AI rating for CDP?

COPT DEFENSE PROPERTIES (CDP) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CDP's key strengths?

Exceptional free cash flow generation at $309.9M with 40.6% FCF margin provides strong capital deployment capacity. High net profit margin of 19.9% demonstrates operational efficiency and pricing power in defense real estate.

What are the risks of investing in CDP?

Extraordinary 1715.7% revenue growth is unsustainable and suggests one-time gains or acquisitions; organic growth clarity is lacking. Elevated debt-to-equity ratio of 1.83x combined with $2.8B long-term debt represents significant financial leverage risk.

What is CDP's revenue and growth?

COPT DEFENSE PROPERTIES reported revenue of $763.9M.

Does CDP pay dividends?

COPT DEFENSE PROPERTIES pays dividends, with $136.6M distributed to shareholders in the trailing twelve months.

Where can I find CDP SEC filings?

Official SEC filings for COPT DEFENSE PROPERTIES (CIK: 0000860546) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CDP's EPS?

COPT DEFENSE PROPERTIES has a diluted EPS of $1.34.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI