Camden Property (CPT) AI Stock Analysis

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Camden Property

(NYSE:CPT)

Rating:71Outperform

Price Target:

$128.00

▲(10.10%Upside)

Camden Property's overall score is driven by strong financial performance and positive earnings call highlights. Despite a high P/E ratio indicating potential overvaluation, the company's strategic initiatives and shareholder support provide a solid foundation for growth.

Positive Factors

Analyst Ratings

Analyst maintains an 'Outperform' rating on CPT, indicating confidence in the company's future performance.

Earnings

The company reported Core FFO per share of $1.72, which was six cents higher than consensus estimates and eight cents higher than analyst numbers.

Financial Performance

CPT's operating expenses were significantly lower than expected, leading to a better-than-expected same-store net operating income.

Negative Factors

Guidance

CPT's FY25 Core FFO guidance is slightly below consensus, with additional non-core charges affecting the expected growth.

Market Performance

Average Monthly Rate declined, impacted by performance in Austin.

Revenue

Some markets like Austin and Nashville, representing 6% of the company's portfolio, saw a decrease of ~3% in revenue, and is expected to persist going into 2025 due to supply pressures.

Camden Property (CPT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$16.36B

Dividend Yield3.63%

Average Volume (3M)856.24K

Price to Earnings (P/E)106.9

Beta (1Y)0.74

Revenue Growth0.56%

EPS Growth-73.40%

CountryUS

Employees1,660

SectorReal Estate

Sector Strength72

IndustryREIT - Residential

Share Statistics

EPS (TTM)0.36

Shares Outstanding106,837,970

10 Day Avg. Volume851,749

30 Day Avg. Volume856,236

Financial Highlights & Ratios

PEG Ratio0.18

Price to Book (P/B)2.41

Price to Sales (P/S)0.00

P/FCF Ratio40.77

Enterprise Value/Market Cap0.79

Enterprise Value/Revenue2.09

Enterprise Value/Gross Profit19.58

Enterprise Value/Ebitda3.67

Forecast

1Y Price Target

$129.72

Price Target Upside11.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering16

Camden Property Business Overview & Revenue Model

Company DescriptionCamden Property Trust, an S&P 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 167 properties containing 56,850 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company's portfolio will increase to 59,104 apartment homes in 174 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 13 consecutive years, most recently ranking #18. The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.

How the Company Makes MoneyCamden Property Trust generates revenue primarily through its rental income from leasing apartment units within its multifamily residential communities. This income stream is the core of its business model as a REIT, which requires the company to distribute a significant portion of its taxable income to shareholders in the form of dividends. Additional revenue streams include fees from property management services and, occasionally, the sale of properties within its portfolio. Camden's earnings are significantly influenced by factors such as occupancy rates, rental rates, and operating expenses. The company's strategic focus on high-demand urban markets and its commitment to maintaining and upgrading its properties contribute to its ability to attract and retain tenants, thereby sustaining its income generation.

Camden Property Key Performance Indicators (KPIs)

Any

Revenue by Category

Chart InsightsCamden Property's revenue from Same Property Communities has shown consistent growth, recently bolstered by strong Sunbelt market performance. However, Non-Same Property Communities experienced a sharp decline, possibly due to challenging market conditions in Austin and Nashville. Despite a negative blended rental rate, Camden's strategic initiatives, including acquisitions and a new commercial paper program, have improved financial performance. The company remains optimistic, with a high customer satisfaction score and plans for further development, suggesting a robust foundation for future growth despite current market challenges.

Data provided by:

Main Street Data

Camden Property Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 1.25%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive outlook with significant achievements in recognition, financial performance, and market presence. While there are challenges such as negative blended rental rates and market-specific issues, the company's strategic initiatives and market strengths provide a strong foundation for future growth.

Q1-2025 Updates

Positive Updates

Recognition as a Top Workplace

Camden was named by FORTUNE magazine as one of the 100 Best Companies to Work For, marking the 18th consecutive year of this achievement.

Exceeded Earnings Expectations

The company exceeded its operating expectations, beating guidance by $0.04 per share.

Strong Sunbelt Market Performance

Sunbelt markets continue to dominate in job growth and affordability, with new supply peaking and apartment absorption remaining strong.

High Customer Satisfaction

Camden's customer sentiment score was 91.1, the highest since 2014, indicating high resident satisfaction.

Successful Real Estate Transactions

Completed two acquisitions totaling $199 million and commenced construction on a new development with an estimated cost of $184 million.

New Commercial Paper Program

Introduced a $600 million commercial paper program, leading to lower interest rates and increasing full-year core FFO guidance by $0.03 per share.

Positive Insurance Renewal Outcome

Insurance premiums were renewed with a cost reduction of over 10%.

Negative Updates

Negative Blended Rental Rate

First quarter rental rates showed a blended rate of negative 0.1%, with effective new leases down 3.1% and renewals up 3.3%.

Challenging Market Conditions in Austin and Nashville

Austin and Nashville are expected to remain challenged throughout 2025 due to significant new deliveries.

Slight Sequential Decline in FFO

Second quarter core FFO per share is expected to decline by $0.03 sequentially due to various factors including seasonality and increased interest expense.

Slow Lease-up in Single-Family Rentals

Lease-up for single-family rental communities has been slower than expected, although stabilization is anticipated later in the year.

Company Guidance

During Camden Property Trust's First Quarter 2025 Earnings Conference Call, the company exceeded its operating expectations, beating guidance by $0.04 per share. Camden reported a same-property revenue growth ranging from 1.3% to 4.5% in top markets, with an overall portfolio growth of 0.8%. The company achieved a blended rental rate of negative 0.1%, reflecting a 100 basis point improvement from the previous quarter's negative 1.1%. Occupancy improved slightly to 95.4%, with renewal offers for the upcoming months averaging a 4.2% increase. Camden's annualized net turnover rate was one of the lowest in its history at 31%, with a customer sentiment score reaching a record high of 91.1. The company reported core funds from operations for the first quarter at $1.72 per share, $0.04 above prior guidance, and increased its full-year core FFO guidance midpoint by $0.03 to $6.78, largely due to expected lower interest expense from a new commercial paper program. Camden's acquisition and development activities included $199 million in acquisitions and the commencement of a $184 million development project, with plans to continue monitoring market conditions for further development opportunities.

Camden Property Financial Statement Overview

Summary

Camden Property exhibits strong financial fundamentals with consistent revenue growth and efficient operations. However, declining net profit margins and return on equity signal challenges in profitability.

Income Statement

Positive

Camden Property has demonstrated consistent revenue growth with a notable increase of approximately 8.85% from 2021 to 2022, stabilizing in recent years. The gross profit margin remains healthy at around 61.25% for TTM, indicating efficient cost management. However, net profit margin has shown volatility, dropping to 7.62% in TTM from a high of 28.73% in 2022, which is concerning. EBITDA margin is strong at 54.53% for TTM, suggesting solid operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with an equity ratio of 51.31% for TTM, indicating a balanced asset structure. The debt-to-equity ratio stands at 0.81, reflecting moderate leverage. However, there is a consistent increase in total debt over the years. Return on equity has decreased to 2.56% in TTM, down from 13.10% in 2022, indicating pressure on profitability.

Cash Flow

Very Positive

Camden Property has shown robust free cash flow growth, with a 9.36% increase from 2022 to 2023, despite a decrease in net income. The operating cash flow to net income ratio is strong at 6.66 for TTM, suggesting effective cash generation from operations. However, capital expenditures remain high, impacting free cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.55B	1.54B	1.54B	1.42B	1.14B	1.04B
	Gross Profit
661.28M	944.51M	957.68M	893.56M	695.71M	620.86M
	EBIT
297.82M	297.26M	323.82M	267.38M	237.18M	221.87M
	EBITDA
845.96M	885.60M	899.51M	844.40M	657.87M	589.03M
	Net Income Common Stockholders
118.23M	163.29M	403.31M	653.61M	303.91M	123.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.18M	21.05M	259.69M	10.69M	613.39M	420.44M
	Total Assets
8.99B	8.85B	9.38B	9.33B	7.98B	7.20B
	Total Debt
3.74B	3.49B	3.72B	3.68B	3.17B	3.17B
	Net Debt
3.71B	3.46B	3.46B	3.67B	2.56B	2.75B
	Total Liabilities
4.31B	4.10B	4.33B	4.27B	3.71B	3.68B
	Stockholders Equity
4.61B	4.68B	4.98B	4.99B	4.20B	3.44B
Cash Flow		Free Cash Flow
421.17M	381.14M	384.02M	295.28M	148.75M	92.07M
	Operating Cash Flow
787.20M	774.88M	794.95M	744.71M	577.47M	519.32M
	Investing Cash Flow
-568.07M	-285.23M	-127.13M	-1.46B	-804.39M	-429.60M
	Financing Cash Flow
-282.27M	-725.49M	-417.21M	109.93M	421.37M	307.32M

Camden Property Technical Analysis

Technical Analysis Sentiment

Negative

Last Price116.26

Price Trends

50DMA

115.58

Positive

100DMA

116.84

Negative

200DMA

117.17

Negative

Market Momentum

MACD

-0.10

Positive

RSI

45.94

Neutral

STOCH

21.58

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPT, the sentiment is Negative. The current price of 116.26 is below the 20-day moving average (MA) of 116.41, above the 50-day MA of 115.58, and below the 200-day MA of 117.17, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 21.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPT.

Camden Property Risk Analysis

Camden Property disclosed 21 risk factors in its most recent earnings report. Camden Property reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Camden Property Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQR	74 Outperform	$26.21B	26.92	9.01%	4.01%	3.91%	8.78%
CPT	71 Outperform	$16.36B	106.92	2.47%	3.63%	0.56%	-73.40%
UDR	70 Outperform	$13.60B	114.83	3.40%	4.19%	2.35%	-73.89%
ELS	68 Neutral	$12.58B	33.60	22.87%	3.28%	0.69%	5.67%
Sector *	63 Neutral	$6.89B	19.01	-1.05%	7.24%	4.74%	-22.06%
ESS	63 Neutral	$18.96B	27.21	12.09%	3.62%	7.61%	27.83%
MAA	57 Neutral	$17.84B	30.92	9.37%	4.08%	1.55%	0.73%

* Real Estate Sector Average

Performance Comparison

CPT

Camden Property

116.26

9.00

8.39%

ELS

Equity Lifestyle

64.03

0.87

1.38%

EQR

Equity Residential

69.06

2.43

3.65%

MAA

Mid-America Apartment

150.16

12.43

9.02%

ESS

Essex Property

285.80

16.05

5.95%

UDR

41.39

1.89

4.78%

Camden Property Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy

Camden Property Shareholders Approve Key Proposals

Positive

May 9, 2025

At the recent Annual Meeting, Camden Property‘s shareholders voted on several key matters, including the election of ten Trust Managers, approval of executive compensation, and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2025. All proposals received the necessary shareholder approval, indicating strong support for the company’s leadership and strategic direction.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.