MeritValue

Easterly Government Properties, Inc.

DEAdata completeness 88%13 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'interestExpense'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Easterly Government Properties, Inc. earns about 2% on equity, and has bought back 47% of its shares over 5 years. The applicable estimate puts fair value near $4.5 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$274.9M1$293.6M2$287.2M3$302.1M3$336.1M3
Net income$30.1M4$31.5M5$18.8M6$19.6M6$13M6
Operating cash flow$118.3M7$125.9M8$114.5M9$162.6M9$259.2M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$1.21B10$1.25B11$1.29B12$1.6B13$1.67B13
Cash & equivalents$11.1M14$7.58M15$9.38M16$19.4M17$23.4M17
Diluted shares84.6M90.9M37.8M41.5M45.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$293.65
your share of equity
Profit it earned you last year
$2.89
Free cash flow it threw off
—
Debt you’d be carrying
$369.82

10 shares is a claim on $293.65 of net worth that earned you $2.89 last year, against $369.82 of debt.

iii. Is this a good business?
Moat signal · return on equity
2% avg · 5y
FY21 2%FY22 3%FY23 1%FY24 1%FY25 1%

It earned an average 2% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−47% shares · 5y

Share count is down 47% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 38% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$4.5
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$19.6M
  • growthAssumed0.0%
Graham Number
$13.36
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-021249 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-026749 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-064115 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000950170-24-021249 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000950170-25-026749 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-064115 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-24-021249 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-25-026749 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001193125-26-064115 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000950170-23-005057 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0000950170-24-021249 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0000950170-25-026749 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001193125-26-064115 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0000950170-23-005057 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0000950170-24-021249 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0000950170-25-026749 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001193125-26-064115 (CashAndCashEquivalentsAtCarryingValue)