MeritValue

ESSENTIAL PROPERTIES REALTY TRUST, INC.

EPRTdata completeness 88%9 fiscal years on file
The thesis, from the filings

ESSENTIAL PROPERTIES REALTY TRUST, INC. earns about 4% on invested capital, but has diluted owners by 69% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $9.98 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$230.2M1$286.5M2$359.6M3$449.6M3$561.2M3
Net income$95.7M4$134.1M5$190.7M6$203M6$253M6
Operating cash flow$167.4M7$211M8$254.6M9$308.5M9$381.1M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$1.17B10$1.43B11$1.68B12$2.13B13$2.53B14
Cash & equivalents$59.8M15$62.3M16$39.8M17$40.7M17$60.2M17
Diluted shares117.5M135.9M153.5M177.1M198.1M

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
$212.06
your share of equity
Profit it earned you last year
$12.77
Free cash flow it threw off
—
Debt you’d be carrying
$127.74

10 shares is a claim on $212.06 of net worth that earned you $12.77 last year, against $127.74 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 4%FY22 5%FY23 5%FY24 4%FY25 4%

It earned an average 4% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+69% shares · 5y

Share count is up 69% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 116% 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
$9.98
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$190.7M
  • growthAssumed0.0%
Graham Number
$24.71
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 0001728951-24-000026 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001728951-25-000031 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001728951-26-000008 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001728951-24-000026 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001728951-25-000031 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001728951-26-000008 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001728951-24-000026 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001728951-25-000031 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001728951-26-000008 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001728951-22-000025 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001728951-23-000021 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001728951-24-000026 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001728951-25-000031 (LongTermDebt)
  14. 10-K · period ending 2025-12-31 · accession 0001728951-26-000008 (LongTermDebt)
  15. 10-K · period ending 2021-12-31 · accession 0001728951-24-000026 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001728951-25-000031 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001728951-26-000008 (CashAndCashEquivalentsAtCarryingValue)