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Phillips Edison & Company, Inc. (PECO) Stock Fundamental Analysis & AI Rating 2026

PECO Nasdaq Real Estate Investment Trusts MD CIK: 0001476204
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2025-12-31
SELL
72% Conf
Pending
Analysis scheduled

📊 PECO Key Takeaways

Revenue: $726.6M
Net Margin: 15.3%
Free Cash Flow: $348.1M
Current Ratio: N/A
Debt/Equity: 1.04x
EPS: $0.89
AI Rating: SELL with 72% confidence
Phillips Edison & Company, Inc. (PECO) receives a SELL rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $726.6M, net profit margin of 15.3%, and return on equity (ROE) of 4.9%, Phillips Edison & Company, Inc. demonstrates mixed fundamentals in the Real Estate sector. Below is our complete PECO stock analysis for 2026.

Is Phillips Edison & Company, Inc. (PECO) a Good Investment?

Claude

Phillips Edison exhibits critical financial distress with interest coverage of 0.6x, indicating the company cannot service debt obligations from operating income. The extraordinary 5598% YoY revenue growth masks weak operational fundamentals (1.8% operating margin, $13.0M operating income) suggesting recent restructuring, while the $98.3M gap between operating and net income indicates heavy dependence on non-recurring gains. Minimal cash reserves ($3.5M) compound refinancing risk despite strong cash flow metrics.

Why Buy Phillips Edison & Company, Inc. Stock? PECO Key Strengths

Claude
  • + Strong operating cash flow of $348.1M with 47.9% FCF margin demonstrates underlying asset performance
  • + Reasonable equity base of $2.3B and debt-to-equity ratio of 1.04x within typical REIT parameters
  • + Recent insider activity with 14 Form 4 filings in 90 days indicates management engagement

PECO Stock Risks: Phillips Edison & Company, Inc. Investment Risks

Claude
  • ! Interest coverage ratio of 0.6x is critically low - company cannot cover debt service from operations, creating severe refinancing risk
  • ! Cash position of only $3.5M represents dangerous illiquidity for a $5.3B asset company with $2.4B in long-term debt
  • ! Earnings quality highly questionable with massive gap between $13.0M operating income and $111.3M net income, indicating reliance on one-time gains rather than sustainable operations

Key Metrics to Watch

Claude
  • * Interest coverage ratio improvement above 1.5x threshold for operational sustainability
  • * Operating cash flow maintenance and cash balance restoration above $100M
  • * Operating margin expansion from 1.8% to indicate normalized business performance post-restructuring

Phillips Edison & Company, Inc. (PECO) Financial Metrics & Key Ratios

Revenue
$726.6M
Net Income
$111.3M
EPS (Diluted)
$0.89
Free Cash Flow
$348.1M
Total Assets
$5.3B
Cash Position
$3.5M

💡 AI Analyst Insight

The 47.9% 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.

PECO Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 1.8%
Net Margin 15.3%
ROE 4.9%
ROA 2.1%
FCF Margin 47.9%

PECO vs Real Estate Sector: How Phillips Edison & Company, Inc. Compares

How Phillips Edison & Company, Inc. compares to Real Estate sector averages

Net Margin
PECO 15.3%
vs
Sector Avg 20.0%
PECO Sector
ROE
PECO 4.9%
vs
Sector Avg 8.0%
PECO Sector
Current Ratio
PECO 0.0x
vs
Sector Avg 1.5x
PECO Sector
Debt/Equity
PECO 1.0x
vs
Sector Avg 1.5x
PECO Sector

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

Is Phillips Edison & Company, Inc. Stock Overvalued? PECO Valuation Analysis 2026

Based on fundamental analysis, Phillips Edison & Company, Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.

Return on Equity
4.9%
Sector avg: 8%
Net Profit Margin
15.3%
Sector avg: 20%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.04x
Sector avg: 1.5x

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.

Phillips Edison & Company, Inc. Balance Sheet: PECO Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.04x
Debt/Assets
51.0%
Interest Coverage
0.56x
Long-term Debt
$2.4B

PECO Revenue & Earnings Growth: 5-Year Financial Trend

PECO 5-year financial data: Year 2023: Revenue $11.5M, Net Income $15.1M, EPS $0.15. Year 2024: Revenue $11.5M, Net Income $48.3M, EPS $0.42. Year 2025: Revenue $12.8M, Net Income $56.8M, EPS $0.48.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Phillips Edison & Company, Inc.'s revenue has grown significantly by 10% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.48 reflects profitable operations.

PECO Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
47.9%
Free cash flow / Revenue

PECO Quarterly Earnings & Performance

Quarterly financial performance data for Phillips Edison & Company, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $2.9M $11.6M $0.09
Q2 2025 $2.5M $12.8M $0.10
Q1 2025 $2.6M $17.7M $0.14
Q3 2024 $2.2M $11.6M $0.09
Q2 2024 $2.5M $14.5M $0.12
Q1 2024 $2.5M $16.6M $0.14
Q3 2023 $2.1M $11.0M $0.09
Q2 2023 $2.5M $13.5M $0.12

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

Phillips Edison & Company, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$348.1M
Cash generated from operations
Dividends Paid
$157.3M
Returned to shareholders

PECO SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Phillips Edison & Company, Inc. (CIK: 0001476204)

📋 Recent SEC Filings

Date Form Document Action
Mar 23, 2026 DEF 14A peco-20260323.htm View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772573560.xml View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772573543.xml View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772573520.xml View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772573488.xml View →

Frequently Asked Questions about PECO

What is the AI rating for PECO?

Phillips Edison & Company, Inc. (PECO) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PECO's key strengths?

Claude: Strong operating cash flow of $348.1M with 47.9% FCF margin demonstrates underlying asset performance. Reasonable equity base of $2.3B and debt-to-equity ratio of 1.04x within typical REIT parameters.

What are the risks of investing in PECO?

Claude: Interest coverage ratio of 0.6x is critically low - company cannot cover debt service from operations, creating severe refinancing risk. Cash position of only $3.5M represents dangerous illiquidity for a $5.3B asset company with $2.4B in long-term debt.

What is PECO's revenue and growth?

Phillips Edison & Company, Inc. reported revenue of $726.6M.

Does PECO pay dividends?

Phillips Edison & Company, Inc. pays dividends, with $157.3M distributed to shareholders in the trailing twelve months.

Where can I find PECO SEC filings?

Official SEC filings for Phillips Edison & Company, Inc. (CIK: 0001476204) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PECO's EPS?

Phillips Edison & Company, Inc. has a diluted EPS of $0.89.

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 PECO a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Phillips Edison & Company, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PECO stock overvalued or undervalued?

Valuation metrics for PECO: ROE of 4.9% (sector avg: 8%), net margin of 15.3% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.

Should I buy PECO stock in 2026?

Our dual AI analysis gives Phillips Edison & Company, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PECO's free cash flow?

Phillips Edison & Company, Inc.'s operating cash flow is $348.1M, with capital expenditures of N/A. FCF margin is 47.9%.

How does PECO compare to other Real Estate stocks?

Vs Real Estate sector averages: Net margin 15.3% (avg: 20%), ROE 4.9% (avg: 8%), current ratio N/A (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) 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: Apr 14, 2026 | Data as of: 2025-12-31 | Powered by Claude AI