Empire State Realty OP LP (ESBA, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $2.72 billion. Over the past week, the stock price has climbed to $10.06, marking a gain of 5.01%. This positive momentum extends over the past three months, with a significant 16.45% increase in stock price. According to GuruFocus's GF Value, the stock is currently Fairly Valued at $9.91, a slight increase from the past GF Value of $9.79, which had the stock previously considered Modestly Undervalued.
Introduction to Empire State Realty OP LP
Empire State Realty OP LP, operating within the REITs industry, is the operating partner of Empire State Realty Inc. The company's primary focus is on the management, operation, acquisition, and repositioning of properties in Manhattan and the greater New York metropolitan area. It operates through two business segments: Real Estate and Observatory. The Real Estate segment is the primary revenue generator, while the Observatory segment capitalizes on the iconic Empire State Building's observatories.
Assessing Empire State Realty's Profitability
Empire State Realty boasts a strong Profitability Rank of 7/10, indicating robust profitability within its industry. The company's Operating Margin stands at an impressive 19.90%, outperforming the industry average. With a Return on Equity (ROE) of 5.36% and Return on Assets (ROA) of 2.15%, Empire State Realty outshines over half of its industry competitors. Furthermore, a Return on Invested Capital (ROIC) of 3.73% signifies efficient cash flow generation relative to capital invested. Over the past decade, the company has maintained profitability for 8 years, showcasing consistent performance.
Growth Trajectory of Empire State Realty
The company's Growth Rank is currently at 3/10, suggesting a lower growth trajectory compared to its peers. The 3-Year Revenue Growth Rate per Share is at 3.10%, reflecting moderate industry growth. However, the 5-Year Revenue Growth Rate per Share slows down to 0.60%, indicating a more sluggish long-term growth pattern. The 3-Year EPS without NRI Growth Rate has decreased by 20.40%, which, while a point of concern, is still better than some industry participants.
Competitive Landscape
Empire State Realty operates in a competitive market, with close rivals such as Equity Commonwealth (EQC, Financial) with a market cap of $2.01 billion, SL Green Realty Corp (SLG, Financial) at $2.9 billion, and Highwoods Properties Inc (HIW, Financial) with a market cap of $2.54 billion. These competitors are within the same industry and have market capitalizations that are comparable to Empire State Realty's, providing a context for its performance relative to its peers.
Conclusion
In summary, Empire State Realty OP LP has demonstrated a strong market position with its recent stock price increase. The company's solid profitability metrics and consistent performance over the years, coupled with a fair valuation according to GF Value, position it well within the REIT industry. While growth rates indicate some challenges ahead, the company's ability to maintain profitability and manage its capital efficiently suggests resilience. As investors continue to monitor the company's trajectory, Empire State Realty OP LP remains a noteworthy player in the competitive landscape of real estate investment trusts.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
