Aureus
BGood

Essex Property Trust, Inc.(ESS)

B

Financial data as of Dec 31, 2025Stable · Real Estate

FCF Margin49.5%Free Cash Flow / Revenue
Cash Conversion160.4%Operating CF / Net Income
Free Cash Flow$934.1M
Revenue$1.9B
Net Cash-$6.8BNet debt position
Debt / FCF7.3xElevated debt burden
Current Ratio0.77Tight short-term liquidity
YoY FCF Growth+8.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1High debt-to-FCF ratio (7.3x)
→
+0.5Healthy FCF margin with manageable debt (49.5%, 7.3x)
→
-1Current ratio below 1.0 (0.77)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Exceptional FCF margin (49.5%)
  • Excellent cash conversion (160%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($6.8B net debt, 7.3x FCF)
  • High debt-to-FCF ratio (7.3x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin49.5%
Net Margin35.5%
Operating CF Margin56.9%
CapEx Ratio7.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$6.8BNet debt position
Debt / FCF7.3xElevated debt burden
Current Ratio0.77Tight liquidity
Debt / Equity1.24Moderate leverage

Quarterly FCF Trend

+8.5% YoYStable (+8.5%)

Free cash flow per quarter

Sector Comparison — Real Estate

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameEssex Property Trust, Inc.
SectorReal Estate
Free Cash Flow$934.1M
Revenue$1.9B
Net Income$669.7M
Operating Cash Flow$1.1B
Capital Expenditure$140.3M
FCF Margin49.5%
Cash Conversion Rate160.4%
Net Margin35.5%
Total Debt$6.9B
Total Cash$76.2M
Net Cash-$6.8B
Current Ratio0.77
Debt / Equity1.24
Debt / FCF7.3x
YoY FCF Growth+8.5%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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