Is epr a safe investment?
10/27/2024 04:02pm
**EPR Properties (EPR) can be considered a relatively safe investment for several reasons:**
1. **High Dividend Yield**: EPR offers a high dividend yield of 7.15% as of October 24, 2024. This provides investors with a significant income stream and makes the stock attractive for those seeking passive income.
2. **Low Payout Ratio**: The dividend payout ratio for EPR is 24.49% as of June 30, 2024. A lower payout ratio suggests that the company retains more earnings than distributing as dividends, which can help maintain its financial health and stability.
3. **Strategic Position in Entertainment Sector**: EPR's focus on entertainment, recreation, and education properties positions it in a sector that is recovering from pandemic-related challenges. As the movie theater industry shows signs of improvement, EPR's portfolio is well-positioned for potential growth.
4. **Analyst Confidence**: Analysts have provided a range of ratings for EPR, with some maintaining a "Strong Buy" or "Outperform" rating, indicating confidence in the company's performance. Additionally, the average analyst price target suggests potential for price appreciation.
5. **Financial Stability Indicators**: The company's debt-to-equity ratio has shown a slight increase over the past year, but it remains relatively stable, indicating manageable leverage.
However, there are also some factors to be aware of:
1. **Interest Coverage Ratio**: The interest coverage ratio, which measures a company's ability to pay interest on its debt, is not available for EPR. This makes it difficult to assess the company's interest payment obligations.
2. **Current Ratio**: The current ratio, which indicates a company's ability to pay short-term obligations, is not provided for EPR. This limits the ability to assess the company's short-term liquidity.
In conclusion, while EPR Properties presents several attractive features for investors seeking safety and income, it is important to consider the missing interest coverage and current ratio data when making investment decisions. Investors should weigh these factors against the company's strategic position and analyst confidence to determine if EPR aligns with their risk tolerance and investment goals.