📊 EPRT Key Takeaways
Is Essential Properties Realty Trust, Inc.. (EPRT) a Good Investment?
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.
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 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
- 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
- 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
- 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
- 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
- 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 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 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.. appears fundamentally strong 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 |
|---|---|---|---|
| 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.
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 (BUY) and ChatGPT (BUY) with 78% combined 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. 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: 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. 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 $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 April 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: 8%), net margin of 45.1% (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 $381.1M, with capital expenditures of $1.3M. FCF margin is 67.7%.
How does EPRT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 45.1% (avg: 20%), ROE 6.0% (avg: 8%), current ratio N/A (avg: 1.5).