EPR Properties (EPR) AI Stock Analysis

• Market Cap: $3.56B
• Dividend Yield: 7.54%
• Average Volume (3M): 914.14K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.79
• Revenue Growth: -1.01%
• EPS Growth: -18.46%
• Country: US
• Employees: 55
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Specialty
• EPS (TTM): 1.60
• Shares Outstanding: 76,064,575
• 10 Day Avg. Volume: 967,436
• 30 Day Avg. Volume: 914,138
• PEG Ratio: 1.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.60
• Price to Cash Flow (P/CF): 10.50
• P/FCF Ratio: 6.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $53.75
• Price Target Upside: 23.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

EPR Properties receives a solid score driven by its strong financial performance, especially in terms of revenue growth and cost management. The stock's bullish technical indicators point to positive momentum, although the high P/E ratio suggests potential overvaluation. The positive earnings call outlook and strategic board changes further support the stock's favorable position, offsetting some challenges in specific segments.

Positive Factors

Asset Quality Improvement

EPR Properties has effectively improved its theater asset quality by selling vacant and underperforming assets.

Earnings and Balance Sheet

EPR Properties ended the year with healthy earnings growth, a strong balance sheet, and improving sentiment within the movie industry, which positions the company favorably.

Movie Industry Sentiment

EPR's stock rallied significantly in the first quarter, outpacing broader REITs and the S&P 500 due to positive movie industry sentiment.

Negative Factors

Deployment Challenges

A depressed equity cost of capital continues to negatively influence deployment volumes, curbing earnings growth prospects.

Rent Coverage Decline

For the second consecutive quarter, the company’s rent coverage metrics declined, from 2.2x in mid-2024 to 2.0x at year-end.

Theater Revenue Concerns

EPR Properties' earnings growth is appropriately priced in by the market, with concerns about theater industry revenue recovery following COVID and the recent writers' strike.

EPR Properties Business Overview & Revenue Model

Company Description

EPR Properties is a leading experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues which create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have nearly $6.7 billion in total investments across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

How the Company Makes Money

EPR Properties generates revenue primarily through leasing its properties to tenants under long-term, triple-net lease agreements. This revenue model ensures a stable and predictable income stream, as tenants are responsible for paying property taxes, insurance, and maintenance costs in addition to rent. The company's key revenue streams include lease payments from its diversified portfolio of entertainment, recreation, and education properties. Additionally, EPR Properties may engage in financing and development activities to expand its portfolio and enhance its earnings potential. Strategic partnerships with major operators in its target sectors and a focus on high-demand experiential properties further contribute to its financial success.

EPR Properties Financial Statement Overview

Summary

EPR Properties demonstrates strong financial performance with a consistent revenue growth trend and efficient cost management. The company shows significant improvements in its capital structure, particularly with the reduction of debt, and maintains effective cash flow management. However, profitability pressures are evident in reduced net margins and ROE, and declining free cash flow growth warrants attention.

Income Statement

EPR Properties shows a stable revenue growth trajectory with a 5.82% increase in revenue from 2023 to TTM 2024. The gross profit margin remains strong at approximately 81.92% in TTM. However, net profit margin declined to 20.92% compared to 26.23% in 2023, indicating some profitability pressure. The EBIT and EBITDA margins also show solid performance, reflecting efficient operational management.

Balance Sheet

The balance sheet of EPR Properties exhibits strong financial health with total debt reduced to zero in TTM, improving the debt-to-equity ratio significantly. The equity ratio of 41.36% indicates a solid capital structure, enhancing financial stability. The return on equity is healthy at 6.29% in TTM, though slightly lower than 7.05% in 2023, reflecting some pressure on returns.

Cash Flow

EPR's cash flow position is robust with a substantial operating cash flow of $300.2 million in TTM, though it has decreased from $447.1 million in 2023. The free cash flow remained positive but showed a decline compared to the previous year. The company's ability to maintain positive free cash flow is commendable, though the free cash flow growth rate is negative, indicating room for improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
641.00M	659.72M	658.03M	531.68M	414.66M
	Gross Profit
581.85M	602.24M	602.05M	474.94M	356.07M
	EBIT
315.67M	306.40M	310.96M	236.53M	89.79M
	EBITDA
444.04M	467.66M	504.17M	404.56M	260.13M
	Net Income Common Stockholders
146.07M	173.05M	176.23M	98.61M	-131.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.06M	78.08M	107.93M	288.82M	1.03B
	Total Assets
5.62B	5.70B	5.76B	5.80B	6.70B
	Total Debt
3.07B	3.04B	3.05B	3.02B	3.90B
	Net Debt
3.05B	2.96B	2.94B	2.73B	2.87B
	Total Liabilities
3.29B	3.25B	3.22B	3.18B	4.07B
	Stockholders Equity
2.32B	2.45B	2.54B	2.62B	2.63B
Cash Flow		Free Cash Flow
393.14M	447.09M	428.30M	193.73M	-67.90M
	Operating Cash Flow
393.14M	447.09M	441.72M	306.93M	65.27M
	Investing Cash Flow
-176.35M	-201.05M	-351.58M	1.86M	133.99M
	Financing Cash Flow
-261.62M	-275.69M	-269.39M	-1.05B	297.17M

EPR Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPR, the sentiment is Negative. The current price of 43.53 is below the 20-day moving average (MA) of 50.36, below the 50-day MA of 49.58, and below the 200-day MA of 45.32, indicating a bearish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 70.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPR.

EPR Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPR	78 Outperform	$3.56B	29.20	6.11%	7.54%	-1.01%	-18.46%
GLPI	71 Outperform	$13.16B	16.71	18.61%	6.54%	6.33%	3.44%
PCH	70 Outperform	$3.18B	146.46	1.04%	4.60%	3.71%	-64.41%
LAMR	69 Neutral	$10.75B	29.80	31.97%	5.39%	4.55%	-27.25%
OUT	65 Neutral	$2.32B	8.98	34.53%	6.58%	0.57%	―
CXW	64 Neutral	$2.12B	31.44	4.64%	―	3.43%	4.64%
Sector *	61 Neutral	$4.26B	15.61	-3.60%	11.29%	6.17%	-21.11%

EPR Properties Corporate Events

EPR Properties Reports 2024 Financial Results and Dividend Increase

EPR Properties reported its fourth quarter and full-year 2024 financial results, highlighting a total revenue of $698.1 million for the year, despite a net loss of $14.4 million in the fourth quarter. The company announced a 3.5% increase in its monthly dividend and introduced 2025 earnings and investment spending guidance, projecting FFOAA per diluted share to rise by 3.5% at the midpoint. The company executed $49.3 million in investment spending in Q4 2024, with a focus on experiential development, and committed $150 million for future projects. EPR Properties also continued its strategy of reducing theatre and education investments, reallocating proceeds into experiential assets, and finalized its exit from an underperforming RV property investment.

EPR Properties Elects JP Suarez as Trustee

On January 27, 2025, EPR Properties announced the election of John Peter (JP) Suarez as an independent trustee to its Board of Trustees, effective January 24, 2025. Suarez, who brings extensive experience from his executive roles at Walmart, is expected to provide strategic guidance to EPR Properties, potentially strengthening its position in the real estate industry.