Essential Properties Realty Trust, Inc. (EPRT) AI Stock Analysis

Essential Properties Realty Trust, Inc. specializes in the acquisition, ownership, and management of single-tenant properties across the United States. Operating as a Real Estate Investment Trust, the company primarily leases to middle-market businesses in service and retail sectors, including restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness centers. As of December 31, 2021, the company owned 1,451 properties under long-term leases designed to provide stable cash flows. Founded in 2016 and based in Princeton, New Jersey, the REIT distributes taxable income to maintain its federal corporate income tax exemption.

Essential Properties grew annual revenue from $230.2M in FY2021 to $286.5M in FY2022, $359.6M in FY2023, $449.6M in FY2024, and $561.9M in FY2025, achieving a 5-year revenue CAGR of 27.9%. Net income expanded from $95.7M in FY2021 to $253.0M in FY2025, while diluted earnings per share grew from $0.79 to $1.28. Gross margin was 97.5% in FY2021 and 84.0% in FY2025, alongside an operating margin of 64.5% in FY2025. Over the trailing twelve months ended June 30, 2026, revenue reached $615.5M with a profit margin of 43.5%. In the latest quarter, quarterly revenue rose 18.1% year-over-year and quarterly earnings grew 7.5%.

As of June 30, 2026, Essential Properties held $134.2M in cash and short-term investments against total debt of $2.92B, resulting in net debt of $2.78B. Total assets stood at $7.49B against shareholders' equity of $4.41B, producing a debt-to-equity ratio of 0.66 and a current ratio of 7.55. For FY2025, operating cash flow reached $381.1M, matching free cash flow of $381.1M. The company paid $233.9M in dividends during FY2025, while its common share count increased 73.7% over the 5-year period.

At a closing price of $26.09, Essential Properties has a market capitalization of $5.66B and an enterprise value of $8.60B. The company trades at a trailing P/E of 20.2x and a forward P/E of 22.8x, compared to medians of 21.6x and 23.5x for its US-listed Real Estate peers. Its EV/EBITDA multiple is 15.4x relative to the peer group median of 14.7x, while its price-to-sales ratio is 9.2x against the peer median of 3.7x. Over the past year, the stock fell 10.6%, lagging the 16.8% return of the S&P 500.

Essential Properties pays an annualized forward dividend of $1.28 per share, providing a 4.91% dividend yield with an 83.7% payout ratio. Payments occur on a quarterly frequency, supported by nine consecutive years of distributions. Over the past five years, the dividend has grown at an annualized rate of 5.3%. The most recent ex-dividend date was September 30, 2026.

Wall Street analysts hold 16 Strong Buy, 3 Buy, and 1 Hold recommendations on EPRT, with no Sell or Strong Sell ratings. The mean price target is $36.15, implying an upside of 38.6% from the closing price of $26.09. Consensus forecasts estimate FY2026 EPS of $1.34 on revenue of $667.7M. The company beat EPS estimates in each of the trailing 4 quarters, with its next earnings release scheduled for October 21, 2026.

This page is an AI-written research summary of Essential Properties Realty Trust, Inc. (EPRT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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