# Essex Property Trust (ESS.US)

Canonical: https://gigainvestors.com/s/ESS

Analysis as of: 2026-10-16T07:28:21.419Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $269.66 per share; close as of 2026-10-15.

Estimated value: low $198.36 per share, central $225.46 per share, high $261.52 per share. Buy at or below the central value $225.46 per share. Valuation as of 2026-10-16T07:28:21.419Z; scenarios are not confidence intervals.

Expected annual return: 8.8% at the stated quote. About 8.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.35×

- FY2018: 0.37×

- FY2019: 0.33×

- FY2020: 0.33×

- FY2021: 0.37×

- FY2022: 0.37×

- FY2023: 0.35×

- FY2024: 0.40×

- FY2025: 0.44×

- LTM to Jun 2026: 0.29×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 16.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.1%

- ROIC, second-lowest year: 3.0%

- Typical minus recent gross margin: 16.7 pp

- Typical gross margin (annual median): 84.9%

- Recent gross margin (lower of latest and 3-year median): 68.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.2%

- ROIC including acquisitions, ten-year median: 7.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.6%

- FY2017: 2.6%

- FY2018: 3.0%

- FY2019: 4.0%

- FY2020: 4.0%

- FY2021: 4.2%

- FY2022: 5.1%

- FY2023: 5.2%

- FY2024: 5.8%

- FY2025: 6.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.77×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.8B

- Net income, five-year total: $2.7B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.8 pp

- Working capital / revenue, final three-year average: 2.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.82×

- FY2022: 1.92×

- FY2023: 2.01×

- FY2024: 1.60×

- FY2025: 1.69×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.0% vs 5.8%

- Per-share earnings: 6.33 to 10.44 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: $1.6B

- Cumulative retained earnings: -$343M

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.5%

- Per-share value change: $4.12

- Per-share value, starting three-year median: $6.33

- Per-share value, ending three-year median: $10.44

- Buybacks concentrated in cheaper years (correlation): 0.02

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $10M

- Cumulative net income, 10 years: $5.0B

- ROIC, first three-year median: 3.0%

- ROIC, last three-year median: 5.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $6.33

- FY2017: $6.57

- FY2018: $5.90

- FY2019: $6.66

- FY2020: $8.68

- FY2021: $7.51

- FY2022: $6.27

- FY2023: $6.32

- FY2024: $11.54

- FY2025: $10.44

### accounting: pass

- Sloan accruals: -3.1%

- Receivables to sales index (DSRI): 0.64×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 0.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.60×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.4%

- FY2017: -2.7%

- FY2018: -3.5%

- FY2019: -3.8%

- FY2020: -1.8%

- FY2021: -3.2%

- FY2022: -4.6%

- FY2023: -4.6%

- FY2024: -2.5%

- FY2025: -3.1%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Dec 2021 · sales +1.4%

Story as of 2026-10-16T09:58:42.786Z; price observation 2026-10-15.

Price needs cash profits to grow 3.2% a year for ten years

- 2025-05-08: Essex sees new lease rents turn positive ([finance.yahoo.com](https://finance.yahoo.com/news/essex-sees-lease-rents-turn-142400187.html))

- 2026-02-11: Northern California strength, lower concessions drive positive Q4 for Essex ([finance.yahoo.com](https://finance.yahoo.com/news/northern-california-strength-lower-concessions-160800598.html))

- 2026-04-29: ESS Q1 FFO Beats Estimates on Strong Same-Property NOI ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ess-q1-ffo-beats-estimates-142800299.html))

### Sales · FY2025–2026

sales +1.4%; source https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm; observed 2026-02-20.

- FY2017: $1.4B 

- FY2018: $1.4B 

- FY2019: $1.5B 

- FY2020: $1.5B 

- FY2021: $1.4B 

- FY2022: $1.6B 

- FY2023: $1.7B 

- FY2024: $1.8B 

- FY2025: $1.9B 

- FY2026: $1.9B 

### Gross margin · FY2025

gross margin 68.8%; source https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm; observed 2026-02-20.

- FY2016: 86.9% 

- FY2017: 87.1% 

- FY2018: 86.9% 

- FY2019: 87.0% 

- FY2020: 85.9% 

- FY2021: 83.9% 

- FY2022: 69.0% 

- FY2023: 68.1% 

- FY2024: 68.1% 

- FY2025: 68.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm (filed 2026-02-20); FY2025: revenue 1900558000; grossProfit 1307952000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 68.1% to 68.8% during 2023–25; it earns 4.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 68.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 68.1%.

- Source: https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 68.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.03640515918560923],[2017,0.02612473498305285],[2018,0.030302782887691056],[2019,0.0403742492179206],[2020,0.04003005005249942],[2021,0.041537390161756116],[2022,0.05132517171796606],[2023,0.05210812742753986],[2024,0.058326123744011284],[2025,0.06799826144172993]]; median 0.04095581968983836. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 8.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 60013000; owner earnings 796648000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 70986000; owner earnings 830954000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 81684000; owner earnings 788353000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 101689000; owner earnings 821347000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 90085000; owner earnings 1004282000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 121195000; owner earnings 887425000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 163193000; owner earnings 784441000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 140371000; owner earnings 813892000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 136395000; owner earnings 1185347000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 140348000; owner earnings 1139682000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,411134000],[2017,450625000],[2018,484182000],[2019,528459000],[2020,536098000],[2021,542860000],[2022,565924000],[2023,586976000],[2024,620466000],[2025,654068000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 8114000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ESS.US SharesStats.PercentInsiders = 0.733 percentage points; cache date 2026-10-16.

### What could break it

"Capital and credit market conditions and volatility" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm (filed 2026-02-20); Capital and credit market conditions and volatility

### What the price says

The price assumes cash profits grow 3.2% yearly over ten years; actual growth was 6.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.03219876141293743. Price 269.66; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 9.65646678225441 → FY2025 17.697074132253192. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $214.09 per share

- 2016-11: $215.92 per share

- 2016-12: $232.50 per share

- 2017-01: $224.30 per share

- 2017-02: $234.70 per share

- 2017-03: $231.53 per share

- 2017-04: $244.47 per share

- 2017-05: $256.92 per share

- 2017-06: $257.27 per share

- 2017-07: $261.70 per share

- 2017-08: $265.97 per share

- 2017-09: $254.03 per share

- 2017-10: $262.43 per share

- 2017-11: $246.99 per share

- 2017-12: $241.37 per share

- 2018-01: $232.98 per share

- 2018-02: $223.83 per share

- 2018-03: $240.68 per share

- 2018-04: $239.69 per share

- 2018-05: $239.03 per share

- 2018-06: $239.07 per share

- 2018-07: $240.45 per share

- 2018-08: $246.28 per share

- 2018-09: $246.71 per share

- 2018-10: $250.78 per share

- 2018-11: $262.51 per share

- 2018-12: $245.21 per share

- 2019-01: $271.20 per share

- 2019-02: $279.84 per share

- 2019-03: $289.24 per share

- 2019-04: $282.50 per share

- 2019-05: $291.74 per share

- 2019-06: $291.93 per share

- 2019-07: $302.22 per share

- 2019-08: $321.26 per share

- 2019-09: $326.65 per share

- 2019-10: $327.13 per share

- 2019-11: $312.18 per share

- 2019-12: $300.86 per share

- 2020-01: $309.76 per share

- 2020-02: $283.36 per share

- 2020-03: $220.24 per share

- 2020-04: $244.10 per share

- 2020-05: $242.77 per share

- 2020-06: $229.17 per share

- 2020-07: $220.74 per share

- 2020-08: $216.51 per share

- 2020-09: $200.79 per share

- 2020-10: $204.59 per share

- 2020-11: $245.88 per share

- 2020-12: $237.42 per share

- 2021-01: $239.61 per share

- 2021-02: $254.79 per share

- 2021-03: $271.84 per share

- 2021-04: $290.52 per share

- 2021-05: $295.29 per share

- 2021-06: $300.01 per share

- 2021-07: $328.10 per share

- 2021-08: $330.74 per share

- 2021-09: $319.74 per share

- 2021-10: $339.93 per share

- 2021-11: $339.44 per share

- 2021-12: $352.23 per share

- 2022-01: $332.50 per share

- 2022-02: $317.17 per share

- 2022-03: $345.48 per share

- 2022-04: $329.27 per share

- 2022-05: $283.85 per share

- 2022-06: $261.51 per share

- 2022-07: $286.53 per share

- 2022-08: $265.06 per share

- 2022-09: $242.23 per share

- 2022-10: $222.24 per share

- 2022-11: $220.38 per share

- 2022-12: $211.92 per share

- 2023-01: $226.07 per share

- 2023-02: $228.06 per share

- 2023-03: $209.14 per share

- 2023-04: $219.73 per share

- 2023-05: $216.06 per share

- 2023-06: $234.30 per share

- 2023-07: $243.55 per share

- 2023-08: $238.39 per share

- 2023-09: $212.09 per share

- 2023-10: $213.92 per share

- 2023-11: $213.46 per share

- 2023-12: $247.94 per share

- 2024-01: $233.27 per share

- 2024-02: $231.40 per share

- 2024-03: $244.81 per share

- 2024-04: $246.25 per share

- 2024-05: $259.79 per share

- 2024-06: $272.20 per share

- 2024-07: $278.36 per share

- 2024-08: $301.79 per share

- 2024-09: $295.42 per share

- 2024-10: $283.86 per share

- 2024-11: $310.46 per share

- 2024-12: $285.44 per share

- 2025-01: $284.57 per share

- 2025-02: $311.57 per share

- 2025-03: $306.57 per share

- 2025-04: $279.15 per share

- 2025-05: $283.90 per share

- 2025-06: $283.40 per share

- 2025-07: $260.18 per share

- 2025-08: $270.21 per share

- 2025-09: $267.66 per share

- 2025-10: $251.77 per share

- 2025-11: $263.62 per share

- 2025-12: $261.68 per share

- 2026-01: $251.87 per share

- 2026-02: $255.11 per share

- 2026-03: $242.00 per share

- 2026-04: $263.21 per share

- 2026-05: $272.64 per share

- 2026-06: $291.59 per share

- 2026-07: $284.14 per share

- 2026-08: $282.96 per share

- 2026-09: $269.39 per share

- 2026-10: $269.66 per share

## Annual estimated value (USD per share)

- FY2016: low $113.41 per share, central $128.45 per share, high $148.47 per share

- FY2017: low $122.39 per share, central $138.80 per share, high $160.64 per share

- FY2018: low $135.43 per share, central $153.41 per share, high $177.34 per share

- FY2019: low $139.10 per share, central $157.89 per share, high $182.90 per share

- FY2020: low $155.00 per share, central $175.94 per share, high $203.83 per share

- FY2021: low $150.79 per share, central $171.11 per share, high $198.16 per share

- FY2022: low $153.67 per share, central $174.61 per share, high $202.49 per share

- FY2023: low $166.69 per share, central $188.71 per share, high $218.03 per share

- FY2024: low $187.53 per share, central $213.17 per share, high $247.30 per share

- FY2025: low $195.69 per share, central $222.37 per share, high $257.87 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:03.153Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/920522/000092052226000003/ess-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.