📊 EPRT Key Takeaways
Is EPRT a Good Investment? Thesis Analysis
Essential Properties demonstrates strong operational efficiency with a 64.1% operating margin and exceptional free cash flow generation (67.7% FCF margin), indicating a well-managed REIT with high-quality earnings. Revenue growth of 24.8% YoY combined with substantial operating cash flow of $381.1M and minimal capital intensity ($1.3M capex) supports sustainable distributions and potential value creation for shareholders.
Why Buy EPRT? Key Strengths
- Exceptional profitability with 64.1% operating margin and 45.1% net margin, indicating strong pricing power and operational efficiency
- Robust free cash flow generation of $379.8M with 67.7% FCF margin, providing substantial flexibility for distributions and debt reduction
- Strong revenue growth of 24.8% YoY demonstrates expanding tenant base and portfolio strength
- Conservative leverage with 0.60x debt-to-equity ratio and excellent interest coverage of 23.1x indicates manageable debt obligations
- Minimal capital intensity with capex of only $1.3M on $6.9B asset base, typical of mature net-lease REIT model
EPRT Investment Risks to Consider
- Low cash position of $60.2M relative to $2.7B liabilities raises refinancing risk concerns, particularly in rising rate environment
- Modest ROE of 6.0% and ROA of 3.7% suggest capital efficiency challenges despite strong margins, typical REIT constraint
- High reliance on tenant base concentration and lease renewal risk inherent to retail/commercial real estate investment
- Capital-light model with minimal reinvestment capability limits organic growth potential and portfolio quality improvements
- Significant insider trading activity (20 Form 4 filings in 90 days) warrants monitoring for potential insider sentiment shifts
Key Metrics to Watch
- Tenant occupancy rates and lease renewal spreads to assess portfolio health
- Operating cash flow trends and FCF sustainability amid economic cycles
- Debt refinancing capacity and weighted average lease expiration to monitor liquidity risk
- Same-store NOI growth and tenant credit quality metrics
- Distribution payout ratios relative to operating cash flow
EPRT Financial Metrics
💡 AI Analyst Insight
The 67.7% 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.
EPRT Profitability Ratios
EPRT vs Default Sector
How ESSENTIAL PROPERTIES REALTY TRUST, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EPRT Overvalued or Undervalued?
Based on fundamental analysis, ESSENTIAL PROPERTIES REALTY TRUST, INC. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EPRT Balance Sheet & Liquidity
EPRT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: ESSENTIAL PROPERTIES REALTY TRUST, INC.'s revenue has grown significantly by 144% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.24 reflects profitable operations.
EPRT Growth Metrics (YoY)
EPRT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $117.1M | $49.1M | $0.27 |
| Q2 2025 | $109.3M | $51.5M | $0.29 |
| Q1 2025 | $103.5M | $47.0M | $0.28 |
| Q3 2024 | $91.7M | $45.9M | $0.27 |
| Q2 2024 | $86.5M | $51.5M | $0.29 |
| Q1 2024 | $83.7M | $42.9M | $0.28 |
| Q3 2023 | $70.7M | $36.4M | $0.26 |
| Q2 2023 | $71.4M | $35.7M | $0.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EPRT Capital Allocation
EPRT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for ESSENTIAL PROPERTIES REALTY TRUST, INC. (CIK: 0001728951)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EPRT
What is the AI rating for EPRT?
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EPRT's key strengths?
Claude: Exceptional profitability with 64.1% operating margin and 45.1% net margin, indicating strong pricing power and operational efficiency. Robust free cash flow generation of $379.8M with 67.7% FCF margin, providing substantial flexibility for distributions and debt reduction.
What are the risks of investing in EPRT?
Claude: Low cash position of $60.2M relative to $2.7B liabilities raises refinancing risk concerns, particularly in rising rate environment. Modest ROE of 6.0% and ROA of 3.7% suggest capital efficiency challenges despite strong margins, typical REIT constraint.
What is EPRT's revenue and growth?
ESSENTIAL PROPERTIES REALTY TRUST, INC. reported revenue of $561.2M.
Does EPRT pay dividends?
ESSENTIAL PROPERTIES REALTY TRUST, INC. pays dividends, with $233.9M distributed to shareholders in the trailing twelve months.
Where can I find EPRT SEC filings?
Official SEC filings for ESSENTIAL PROPERTIES REALTY TRUST, INC. (CIK: 0001728951) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EPRT's EPS?
ESSENTIAL PROPERTIES REALTY TRUST, INC. has a diluted EPS of $1.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EPRT a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, ESSENTIAL PROPERTIES REALTY TRUST, INC. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EPRT stock overvalued or undervalued?
Valuation metrics for EPRT: ROE of 6.0% (sector avg: 15%), net margin of 45.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EPRT stock in 2026?
Our dual AI analysis gives ESSENTIAL PROPERTIES REALTY TRUST, INC. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is EPRT's free cash flow?
ESSENTIAL PROPERTIES REALTY TRUST, INC.'s operating cash flow is $381.1M, with capital expenditures of $1.3M. FCF margin is 67.7%.
How does EPRT compare to other Default stocks?
Vs Default sector averages: Net margin 45.1% (avg: 12%), ROE 6.0% (avg: 15%), current ratio N/A (avg: 1.8).