Embassy Office Parks REIT Analysis

dividend

Pros

• Dividends paid are covered by earnings (1.3x coverage).
• Dividends after 3 years are expected to be thoroughly covered by earnings (793.7x coverage).
• Embassy Office Parks REIT's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Embassy Office Parks REIT only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Embassy Office Parks REIT has stable dividend payments.
• Embassy Office Parks REIT's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Embassy Office Parks REIT's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Embassy Office Parks REIT's earnings are expected to exceed the low risk growth rate next year.
• Embassy Office Parks REIT's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• An improvement in Embassy Office Parks REIT's performance (ROE) is expected over the next 3 years.
• Embassy Office Parks REIT's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Embassy Office Parks REIT is expected to increase but not above the 50% threshold in 2 years time.
• Embassy Office Parks REIT's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
• Embassy Office Parks REIT's earnings growth is positive but not above the India market average.
• Embassy Office Parks REIT's net income is expected to increase but not above the 50% threshold in 2 years time.
• Embassy Office Parks REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current Asia REITs industry average.
• Embassy Office Parks REIT's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Embassy Office Parks REIT's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Embassy Office Parks REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Embassy Office Parks REIT is profitable, therefore cash runway is not a concern.
• Embassy Office Parks REIT is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (29.4%, greater than 20% of total debt).
• Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
• Embassy Office Parks REIT's level of debt (25.8%) compared to net worth is satisfactory (less than 40%).

Cons

• Debt is not covered by short term assets, assets are 0.3x debt.
• Embassy Office Parks REIT's long term commitments exceed its cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• More shares have been bought than sold by Embassy Office Parks REIT individual insiders in the past 3 months.

Cons

• The average tenure for the Embassy Office Parks REIT board of directors is less than 3 years, this suggests a new board.
• The average tenure for the Embassy Office Parks REIT management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Embassy Office Parks REIT has significant price volatility in the past 3 months.

past

Pros

• Embassy Office Parks REIT has delivered over 20% year on year earnings growth in the past 5 years.

Cons

• Embassy Office Parks REIT has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Embassy Office Parks REIT used its assets less efficiently than the Asia REITs industry average last year based on Return on Assets.
• Embassy Office Parks REIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Embassy Office Parks REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Embassy Office Parks REIT has become profitable in the last year making it difficult to compare the Asia REITs industry average.

value

Pros

• EMBASSY outperformed the REITs industry which returned -14.4% over the past year.
• EMBASSY outperformed the Market in India which returned -14.5% over the past year.
• NSEI:EMBASSY is up 7.5% outperforming the REITs industry which returned 5.5% over the past month.
• NSEI:EMBASSY is up 7.5% along with the India market (8%) over the past month.

Cons

• Embassy Office Parks REIT's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Embassy Office Parks REIT's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Embassy Office Parks REIT is overvalued based on assets compared to the Asia REITs industry average.
• Embassy Office Parks REIT is poor value based on expected growth next year.
• Embassy Office Parks REIT is overvalued based on earnings compared to the Asia REITs industry average.
• Embassy Office Parks REIT is overvalued based on earnings compared to the India market.