(PECO) Phillips Edison - Overview
Sector: Real Estate | Industry: REIT - Retail | Exchange: NASDAQ (USA) | Market Cap: 5.524m USD | Total Return: 23.1% in 12m
Avg Turnover: 32.8M
EPS Trend: 97.5%
Qual. Beats: 0
Rev. Trend: 99.5%
Qual. Beats: 3
Warnings
Altman Z'' -1.23 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Phillips Edison & Company (PECO) is a real estate investment trust (REIT) specializing in the ownership and operation of grocery-anchored neighborhood shopping centers across the United States. The company utilizes a vertically integrated platform to manage a portfolio focused on necessity-based retailers, such as Kroger, Publix, and Albertsons. As of late 2025, PECO’s footprint included 324 managed shopping centers totaling approximately 33.5 million square feet across 31 states.
The grocery-anchored retail sector typically exhibits higher resilience during economic downturns compared to discretionary retail due to the recurring nature of consumer foot traffic for essential goods. This business model relies on high occupancy rates from anchor tenants to drive traffic for smaller inline service providers and regional retailers. Investors may find additional valuation metrics and peer comparisons for PECO on ValueRay.
Founded in 1991, PECO operates both wholly owned assets and properties held through institutional joint ventures. The company’s strategy emphasizes omni-channel shopping experiences within fundamentally strong geographic markets to maintain long-term asset value.
- Necessity-based grocery-anchored tenant mix maintains stable cash flow during economic downturns
- High occupancy rates and positive rent spreads drive internal funds from operations
- Interest rate fluctuations impact cost of debt and real estate acquisition cap rates
- Strong retention of top-tier grocery anchors supports long-term lease stability and traffic
- Expansion of omni-channel grocery services increases demand for well-located neighborhood retail space
| Net Income: 115.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.46 > 1.0 |
| NWC/Revenue: -18.40% < 20% (prev -32.93%; Δ 14.53% < -1%) |
| CFO/TA 0.06 > 3% & CFO 343.2m > Net Income 115.3m |
| Net Debt (2.73b) to EBITDA (508.5m): 5.37 < 3 |
| Current Ratio: 0.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (125.0m) vs 12m ago -9.84% < -2% |
| Gross Margin: 53.41% > 18% (prev 0.71%; Δ 5.27k% > 0.5%) |
| Asset Turnover: 14.08% > 50% (prev 13.14%; Δ 0.94% > 0%) |
| Interest Coverage Ratio: 2.11 > 6 (EBITDA TTM 508.5m / Interest Expense TTM 115.4m) |
| A: -0.03 (Total Current Assets 22.4m - Total Current Liabilities 158.5m) / Total Assets 5.35b |
| B: -0.26 (Retained Earnings -1.39b / Total Assets 5.35b) |
| C: 0.05 (EBIT TTM 244.0m / Avg Total Assets 5.26b) |
| D: -0.50 (Book Value of Equity -1.39b / Total Liabilities 2.77b) |
| Altman-Z'' = -1.23 = CCC |
| DSRI: 0.98 (Receivables 135.3m/127.0m, Revenue 740.2m/678.4m) |
| GMI: 1.33 (GM 53.41% / 71.12%) |
| AQI: 0.06 (AQ_t 0.06 / AQ_t-1 0.97) |
| SGI: 1.09 (Revenue 740.2m / 678.4m) |
| TATA: -0.04 (NI 115.3m - CFO 343.2m) / TA 5.35b) |
| Beneish M = -3.28 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 40.53 with a total of 669,387 shares traded.
Over the past week, the price has changed by +2.57%,
over one month by +3.51%,
over three months by +3.80% and
over the past year by +23.05%.
Phillips Edison has received a consensus analysts rating of 3.82. Therefore, it is recommended to buy PECO.
- StrongBuy: 4
- Buy: 1
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 42.6 | 5.2% |
P/E Forward = 72.4638
P/S = 7.4741
P/B = 2.2106
Revenue TTM = 740.2m USD
EBIT TTM = 244.0m USD
EBITDA TTM = 508.5m USD
Long Term Debt = 2.31b USD (from longTermDebt, last quarter)
Short Term Debt = 181.0m USD (from shortLongTermDebt, last quarter)
Debt = 2.74b USD (from shortLongTermDebtTotal, last quarter) + Leases 123.5m
Net Debt = 2.73b USD (calculated: Debt 2.74b - CCE 3.14m)
Enterprise Value = 8.26b USD (5.52b + Debt 2.74b - CCE 3.14m)
Interest Coverage Ratio = 2.11 (Ebit TTM 244.0m / Interest Expense TTM 115.4m)
EV/FCF = 39.90x (Enterprise Value 8.26b / FCF TTM 206.9m)
FCF Yield = 2.51% (FCF TTM 206.9m / Enterprise Value 8.26b)
FCF Margin = 27.96% (FCF TTM 206.9m / Revenue TTM 740.2m)
Net Margin = 15.58% (Net Income TTM 115.3m / Revenue TTM 740.2m)
Gross Margin = 53.41% ((Revenue TTM 740.2m - Cost of Revenue TTM 344.8m) / Revenue TTM)
Gross Margin QoQ = 3.01% (prev 70.35%)
Tobins Q-Ratio = 1.54 (Enterprise Value 8.26b / Total Assets 5.35b)
Interest Expense / Debt = 4.22% (Interest Expense 115.4m / Debt 2.74b)
Taxrate = 1.05% (1.31m / 124.3m)
NOPAT = 241.5m (EBIT 244.0m * (1 - 1.05%))
Current Ratio = 0.14 (Total Current Assets 22.4m / Total Current Liabilities 158.5m)
Debt / Equity = 1.20 (Debt 2.74b / totalStockholderEquity, last quarter 2.28b)
Debt / EBITDA = 5.37 (Net Debt 2.73b / EBITDA 508.5m)
Debt / FCF = 13.21 (Net Debt 2.73b / FCF TTM 206.9m)
Total Stockholder Equity = 2.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.19% (Net Income 115.3m / Total Assets 5.35b)
RoE = 3.14% (Net Income TTM 115.3m / Total Stockholder Equity 3.67b)
RoCE = 4.08% (EBIT 244.0m / Capital Employed (Equity 3.67b + L.T.Debt 2.31b))
RoIC = 4.57% (NOPAT 241.5m / Invested Capital 5.28b)
WACC = 5.73% (E(5.52b)/V(8.26b) * Re(6.50%) + D(2.74b)/V(8.26b) * Rd(4.22%) * (1-Tc(0.01)))
Discount Rate = 6.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 22.47 | Cagr: 0.71%
[DCF] Terminal Value 74.37% ; FCFF base≈213.6m ; Y1≈201.1m ; Y5≈187.2m
[DCF] Fair Price = 1.75 (EV 2.95b - Net Debt 2.73b = Equity 220.5m / Shares 126.0m; r=8.35% [WACC [floored]]; 5y FCF grow -7.46% → 2.50% )
EPS Correlation: 97.48 | EPS CAGR: 13.29% | SUE: 0.22 | # QB: 0
Revenue Correlation: 99.52 | Revenue CAGR: 8.80% | SUE: 0.96 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.17 | Chg30d=-1.17% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.18 | Chg30d=+8.23% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=0.71 | Chg30d=+6.34% | Revisions=N/A | GrowthEPS=+35.8% | GrowthRev=+5.1%
EPS next Year (2027-12-31): EPS=0.77 | Chg30d=+7.19% | Revisions=+20% | GrowthEPS=+8.0% | GrowthRev=+4.8%
[Analyst] Revisions Ratio: +20%