📊 EPRT Key Takeaways
Is Essential Properties Realty Trust, Inc.. (EPRT) a Good Investment?
EPRT demonstrates exceptional cash flow generation (62% FCF margin) and strong operational margins (56.5%), supported by solid 24.8% revenue growth and reasonable leverage (0.60x D/E). However, the sharp divergence between revenue growth (+24.8% YoY) and net income growth (+0.4% YoY) signals deteriorating profitability quality, while critically low capital returns (ROE 1.4%, ROA 0.8%) indicate poor capital deployment efficiency.
Essential Properties Realty Trust shows strong core fundamentals, with robust revenue growth, very high operating and net margins, and excellent cash generation relative to revenue. The balance sheet appears healthy for a REIT, with moderate leverage and very strong interest coverage, although the near-flat net income growth suggests some earnings pressure beneath otherwise solid operating performance.
Why Buy Essential Properties Realty Trust, Inc.. Stock? EPRT Key Strengths
- Exceptional free cash flow generation with 62% FCF margin and $98.5M annual FCF
- Strong operating margins of 56.5% and net margins of 37.7% demonstrate operational efficiency
- Healthy interest coverage ratio of 5.7x and moderate leverage at 0.60x debt-to-equity
- Solid revenue growth of 24.8% YoY showing business expansion
- Revenue grew 24.8% year over year while operating margin remained exceptionally strong at 64.1%
- Free cash flow generation is very strong, with $379.80M of FCF and a 67.7% FCF margin
- Leverage appears manageable with debt-to-equity of 0.60x and interest coverage of 23.1x
EPRT Stock Risks: Essential Properties Realty Trust, Inc.. Investment Risks
- Net income growth severely lagging revenue growth (0.4% vs 24.8%) indicates profitability deterioration or margin compression at lower levels
- Critically low returns on equity (1.4%) and assets (0.8%) signal poor capital efficiency and deployment challenges
- Dangerously low cash position of $15.2M relative to $2.6B long-term debt creates liquidity vulnerability
- EPS growth (11.3%) disconnected from net income growth suggests dilution or non-recurring benefits masking operational challenges
- Net income increased only 0.4% year over year despite strong revenue growth, which may indicate cost, financing, or non-operating headwinds
- Cash on hand is relatively low at $60.18M compared with total liabilities and long-term debt
- ROE of 6.0% and ROA of 3.7% are positive but not especially strong, limiting evidence of high capital efficiency
Key Metrics to Watch
- Net income growth trajectory relative to revenue growth to confirm profitability stabilization
- Return on equity and return on assets improvement indicating better capital deployment
- Cash position and operating cash flow sustainability to assess refinancing risk
- Net income and AFFO/operating cash flow growth relative to revenue growth
- Long-term debt levels, refinancing costs, and interest coverage
Essential Properties Realty Trust, Inc.. (EPRT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 62.0% 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 Profit Margin, ROE & Profitability Analysis
EPRT vs Real Estate Sector: How Essential Properties Realty Trust, Inc.. Compares
How Essential Properties Realty Trust, Inc.. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Essential Properties Realty Trust, Inc.. Stock Overvalued? EPRT Valuation Analysis 2026
Based on fundamental analysis, Essential Properties Realty Trust, Inc.. has mixed fundamental signals relative to the Real Estate 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.
Essential Properties Realty Trust, Inc.. Balance Sheet: EPRT Debt, Cash & Liquidity
EPRT Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
EPRT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $129.4M | $56.1M | $0.28 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Essential Properties Realty Trust, Inc.. Dividends, Buybacks & Capital Allocation
EPRT SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EPRT's key strengths?
Claude: Exceptional free cash flow generation with 62% FCF margin and $98.5M annual FCF. Strong operating margins of 56.5% and net margins of 37.7% demonstrate operational efficiency. ChatGPT: Revenue grew 24.8% year over year while operating margin remained exceptionally strong at 64.1%. Free cash flow generation is very strong, with $379.80M of FCF and a 67.7% FCF margin.
What are the risks of investing in EPRT?
Claude: Net income growth severely lagging revenue growth (0.4% vs 24.8%) indicates profitability deterioration or margin compression at lower levels. Critically low returns on equity (1.4%) and assets (0.8%) signal poor capital efficiency and deployment challenges. ChatGPT: Net income increased only 0.4% year over year despite strong revenue growth, which may indicate cost, financing, or non-operating headwinds. Cash on hand is relatively low at $60.18M compared with total liabilities and long-term debt.
What is EPRT's revenue and growth?
Essential Properties Realty Trust, Inc.. reported revenue of $158.8M.
Does EPRT pay dividends?
Essential Properties Realty Trust, Inc.. pays dividends, with $65.4M 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 $0.28.
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 May 2026, Essential Properties Realty Trust, Inc.. has a BUY rating with 70% 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 1.4% (sector avg: 8%), net margin of 37.7% (sector avg: 20%). 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 $99.8M, with capital expenditures of $1.3M. FCF margin is 62.0%.
How does EPRT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 37.7% (avg: 20%), ROE 1.4% (avg: 8%), current ratio N/A (avg: 1.5).