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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 63.7GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
5.6%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.00%
Trailing Yield
$4.00
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
113%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) receives a "Hold" rating with a composite score of 51.6/100, ranked #816 out of 4446 stocks. Key factor scores: Quality 64/100, Value 59/100, Momentum 46/100. This is quantitative analysis only — not investment advice.
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ESSENTIAL PROPERTIES REALTY TRUST, INC. Do?
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey. ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) is classified as a mid-cap stock in the Financials sector, specifically within the Trading industry. The company is led by CEO Peter M. Mavoides and employs approximately 40 people. With a market capitalization of $6.4B, EPRT is one of the notable companies in the Financials sector.
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) Stock Rating — Hold (April 2026)
As of April 2026, ESSENTIAL PROPERTIES REALTY TRUST, INC. receives a Hold rating with a composite score of 51.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.EPRT ranks #816 out of 4,446 stocks in our coverage universe. Within the Financials sector, ESSENTIAL PROPERTIES REALTY TRUST, INC. ranks #245 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EPRT Stock Price and 52-Week Range
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) currently trades at $32.54. The stock gained $0.10 (0.3%) in the most recent trading session. The 52-week high for EPRT is $34.73, which means the stock is currently trading -6.3% from its annual peak. The 52-week low is $27.44, putting the stock 18.6% above its annual trough. Recent trading volume was 1.2M shares, reflecting moderate market activity.
Is EPRT Overvalued or Undervalued? — Valuation Analysis
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 28.34x, compared to the Financials sector average of 14.88x — a premium of 90%. The price-to-book ratio stands at 1.58x, versus the sector average of 1.22x. The price-to-sales ratio is 12.59x, compared to 0.90x for the average Financials stock. On an enterprise value basis, EPRT trades at 19.35x EV/EBITDA, versus 3.26x for the sector.
Overall, EPRT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ESSENTIAL PROPERTIES REALTY TRUST, INC. Profitability — ROE, Margins, and Quality Score
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) earns a quality factor score of 64/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 5.6%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.4% versus the sector average of 1.2%.
On a margin basis, ESSENTIAL PROPERTIES REALTY TRUST, INC. reports gross margins of 0.0%. The operating margin is 62.5% (sector: 21.8%). Net profit margin stands at 44.3%, versus 17.7% for the average Financials stock. Revenue growth is running at 32.6% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EPRT Debt, Balance Sheet, and Financial Health
ESSENTIAL PROPERTIES REALTY TRUST, INC. has a debt-to-equity ratio of 60.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.58x, indicating strong short-term liquidity. Total debt on the balance sheet is $2.53B. Cash and equivalents stand at $24M.
EPRT has a beta of 0.35, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ESSENTIAL PROPERTIES REALTY TRUST, INC. is 94/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ESSENTIAL PROPERTIES REALTY TRUST, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, ESSENTIAL PROPERTIES REALTY TRUST, INC. reported revenue of $528M and earnings per share (EPS) of $1.29. Net income for the quarter was $235M. Gross margin was 0.0%. Operating income came in at $331M.
In FY 2025, ESSENTIAL PROPERTIES REALTY TRUST, INC. reported revenue of $561M and earnings per share (EPS) of $1.29. Net income for the quarter was $254M. Revenue grew 24.8% year-over-year compared to FY 2024. Operating income came in at $360M.
In Q3 2025, ESSENTIAL PROPERTIES REALTY TRUST, INC. reported revenue of $145M and earnings per share (EPS) of $0.33. Net income for the quarter was $66M. Revenue grew 23.7% year-over-year compared to Q3 2024. Operating income came in at $94M.
In Q2 2025, ESSENTIAL PROPERTIES REALTY TRUST, INC. reported revenue of $137M and earnings per share (EPS) of $0.32. Net income for the quarter was $63M. Revenue grew 25.4% year-over-year compared to Q2 2024. Operating income came in at $88M.
Over the past 8 quarters, ESSENTIAL PROPERTIES REALTY TRUST, INC. has demonstrated a growth trajectory, with revenue expanding from $109M to $528M. Investors analyzing EPRT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EPRT Dividend Yield and Income Analysis
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) currently pays a dividend yield of 4.0%. At this yield, a $10,000 investment in EPRT stock would generate approximately $$400.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning EPRT offers above-average income for its sector. With a net margin of 44.3%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
EPRT Momentum and Technical Analysis Profile
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) has a momentum factor score of 46/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 4/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EPRT vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing EPRT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EPRT vs S&P 500 (SPY) comparison to assess how ESSENTIAL PROPERTIES REALTY TRUST, INC. stacks up against the broader market across all factor dimensions.
EPRT Next Earnings Date
No upcoming earnings date has been announced for ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EPRT? — Investment Thesis Summary
ESSENTIAL PROPERTIES REALTY TRUST, INC. presents a balanced picture with arguments on both sides. The quality score of 64/100 indicates above-average profitability and business fundamentals. Low volatility (stability score 94/100) reduces downside risk.
In summary, ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) earns a Hold rating with a composite score of 51.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EPRT stock.
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Institutional Research Dossier
ESSENTIAL PROPERTIES REALTY TRUST, INC. (EPRT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Essential Properties Realty Trust (EPRT). While the company exhibits strong profitability and stability, its valuation appears stretched relative to its growth prospects and sector peers. The REIT's focus on single-tenant properties leased to middle-market companies provides a degree of resilience, but its relatively high leverage and negative free cash flow raise concerns about its long-term financial flexibility.
EPRT's high operating and net margins are attractive, but its premium valuation and reliance on external capital to fund acquisitions warrant caution. The company's growth strategy, while successful in the past, may face headwinds in a rising interest rate environment, potentially impacting its ability to maintain its current pace of expansion and dividend payouts. Investors should carefully weigh the REIT's strengths against its vulnerabilities before considering an investment.
Business Strategy & Overview
Essential Properties Realty Trust (EPRT) operates as a real estate investment trust (REIT) specializing in the acquisition, ownership, and management of single-tenant properties across the United States. The company's core strategy revolves around leasing these properties to middle-market companies operating in diverse sectors, including restaurants, car washes, automotive services, and early childhood education. EPRT's business model is predicated on generating stable, long-term rental income through triple-net leases, which require tenants to cover property taxes, insurance, and maintenance expenses. This structure minimizes the REIT's operating expenses and enhances its profitability.
EPRT's strategic positioning focuses on identifying and acquiring properties leased to businesses with strong unit-level economics and defensible market positions. The company targets tenants operating in industries that are relatively resistant to economic downturns and e-commerce disruption. By diversifying its tenant base across various sectors and geographic locations, EPRT aims to mitigate the risk of vacancy and rental income volatility. The REIT's growth strategy involves actively pursuing acquisition opportunities and selectively developing new properties to expand its portfolio.
The company's management team has a proven track record of sourcing and executing accretive acquisitions, which have fueled EPRT's rapid growth since its inception in 2016. EPRT's ability to maintain high occupancy rates and generate consistent rental income is critical to its success. The REIT's focus on long-term leases with embedded rent escalations provides a predictable stream of revenue and helps to offset inflationary pressures. However, EPRT's reliance on external capital to fund its acquisitions exposes it to interest rate risk and potential funding constraints.
EPRT operates in a competitive landscape that includes other REITs and private real estate investors. The company differentiates itself through its focus on single-tenant properties leased to middle-market companies and its disciplined approach to underwriting acquisitions. EPRT's ability to maintain strong relationships with its tenants and provide value-added services is essential to retaining tenants and minimizing vacancy rates. The REIT's long-term success depends on its ability to continue executing its growth strategy, managing its capital structure effectively, and adapting to changing market conditions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
32.6%
Sector: 9.4%
+248% VS SCTR
Economic Moat Analysis
Essential Properties Realty Trust possesses a narrow economic moat, primarily derived from its specialized focus on single-tenant properties leased to middle-market companies and the inherent advantages of the REIT structure. While the real estate market is generally competitive, EPRT's expertise in identifying and acquiring properties leased to businesses with strong unit-level economics provides a degree of differentiation. The company's focus on industries that are relatively resistant to economic downturns and e-commerce disruption further strengthens its competitive position.
The triple-net lease structure, which requires tenants to cover property taxes, insurance, and maintenance expenses, provides EPRT with a cost advantage compared to REITs that operate under different lease structures. This structure minimizes the REIT's operating expenses and enhances its profitability. However, the triple-net lease structure is not unique to EPRT and is widely used in the REIT industry.
EPRT's scale and geographic diversification provide some advantages, but these are not substantial enough to create a wide economic moat. The company's portfolio of 1,451 properties is relatively small compared to larger REITs, and its geographic diversification is limited to the United States. While EPRT's management team has a proven track record of sourcing and executing accretive acquisitions, this is not a sustainable competitive advantage.
The REIT structure itself provides some advantages, such as tax benefits and access to capital markets. However, these advantages are available to all REITs and do not provide EPRT with a unique competitive advantage. EPRT's reliance on external capital to fund its acquisitions exposes it to interest rate risk and potential funding constraints, which could erode its competitive position.
Ultimately, EPRT's narrow economic moat is based on its specialized focus, cost advantages, and management expertise. However, the company's competitive advantages are not substantial enough to create a wide economic moat. EPRT's long-term success depends on its ability to continue executing its growth strategy, managing its capital structure effectively, and adapting to changing market conditions.
Financial Health & Profitability
Essential Properties Realty Trust exhibits a mixed financial profile. The company's revenue has grown significantly over the past few years, with a 32.6% increase compared to the sector average of 9.3%. This growth is primarily driven by acquisitions and rent escalations. However, the company's free cash flow is negative, indicating that it is relying on external financing to fund its growth. This is a concern, as it makes the company vulnerable to changes in interest rates and credit market conditions.
EPRT's profitability metrics are strong, with an operating margin of 62.5% and a net margin of 44.3%, significantly higher than the sector averages of 22.0% and 17.8%, respectively. This is due to the company's triple-net lease structure, which minimizes its operating expenses. However, the company's return on equity (ROE) of 5.6% is lower than the sector average of 8.5%, suggesting that it is not generating as much profit from its equity as its peers.
The company's balance sheet is moderately leveraged, with a debt-to-equity ratio of 60.00, lower than the sector average of 115.00. However, the company's total debt of $2.53 billion is significant, and its ability to service this debt depends on its ability to generate consistent rental income. The company's current ratio of 2.58 indicates that it has sufficient liquid assets to cover its short-term liabilities.
Analyzing the quarterly financial history reveals a consistent trend of revenue and net income growth. The operating margin has remained relatively stable, indicating that the company is effectively managing its expenses. However, the lack of free cash flow data in the quarterly reports makes it difficult to assess the company's cash flow generation capabilities. The company's reliance on external financing to fund its growth is a key risk factor that investors should monitor closely.
Valuation Assessment
Essential Properties Realty Trust's valuation presents a mixed picture. The company's P/E ratio of 24.6x is significantly higher than the sector average of 15.5x, suggesting that the stock is overvalued relative to its earnings. Similarly, its EV/EBITDA ratio of 4.5x is higher than the sector average of 3.5x, further indicating that the stock is expensive relative to its cash flow generation. These metrics suggest that investors are paying a premium for EPRT's growth prospects and stability.
However, it's important to consider EPRT's historical growth rate and profitability when assessing its valuation. The company has consistently delivered strong revenue and earnings growth, and its operating and net margins are significantly higher than the sector averages. This suggests that EPRT deserves a premium valuation compared to its peers. However, the question is whether the current premium is justified given the company's reliance on external financing and the potential for interest rate headwinds.
The lack of free cash flow data makes it difficult to assess the company's intrinsic value using traditional discounted cash flow (DCF) analysis. However, based on the available data, it appears that the stock is trading at a premium to its net asset value (NAV). This suggests that investors are expecting EPRT to continue delivering strong growth and profitability in the future.
Overall, EPRT's valuation appears stretched relative to its growth prospects and sector peers. While the company's strong profitability and stability are attractive, its high P/E and EV/EBITDA ratios warrant caution. Investors should carefully consider the company's reliance on external financing and the potential for interest rate headwinds before investing in the stock. A more attractive entry point may present itself if the stock price declines or if the company's growth rate accelerates.
Risk & Uncertainty
Essential Properties Realty Trust faces several key risks. One of the most significant is interest rate risk. As a REIT that relies on external financing to fund its acquisitions, EPRT is vulnerable to increases in interest rates, which could increase its borrowing costs and reduce its profitability. A rising interest rate environment could also make it more difficult for the company to acquire new properties and maintain its growth rate.
Another risk is tenant concentration. While EPRT has a diversified tenant base, it is still exposed to the risk of tenant defaults. A significant tenant default could negatively impact the company's rental income and profitability. The company's focus on middle-market companies also exposes it to the risk of economic downturns, which could disproportionately impact these businesses.
Competition is another risk factor. The REIT industry is highly competitive, and EPRT faces competition from other REITs and private real estate investors. Increased competition could lead to lower rental rates and higher acquisition costs, which could negatively impact the company's profitability. The company's reliance on a specific niche (single-tenant properties leased to middle-market companies) could also limit its growth opportunities.
Finally, regulatory risk is a concern. Changes in tax laws or regulations could negatively impact the REIT industry and EPRT's profitability. For example, changes to the tax treatment of REITs or to the rules governing property depreciation could reduce the company's cash flow and dividend payouts.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEPRT's focus on single-tenant properties leased to middle-market companies provides a stable and predictable stream of rental income, making it a defensive investment in a volatile market.
BULL VIEWThe company's strong operating and net margins demonstrate its efficient business model and ability to generate high returns on its investments, justifying its premium valuation.
BULL VIEWEPRT's management team has a proven track record of sourcing and executing accretive acquisitions, which will continue to drive revenue and earnings growth in the future.
The Bear Case
BEAR VIEWEPRT's high P/E and EV/EBITDA ratios indicate that the stock is overvalued, and its reliance on external financing makes it vulnerable to interest rate hikes.
BEAR VIEWThe company's negative free cash flow is a major concern, as it suggests that EPRT is not generating enough cash to fund its growth and dividend payouts, potentially leading to a dividend cut.
BEAR VIEWEPRT's focus on middle-market tenants exposes it to higher credit risk, and a significant tenant default could negatively impact the company's rental income and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EPRT and 4,400+ other equities.
ESSENTIAL PROPERTIES REALTY TRUST, INC. exhibits a 478% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.4%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
62.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
44.3%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+61%
Income Projection audit
A $10,000 investment would generate approximately $400 annually in dividends at the current trailing rate.
