Empire State Realty OP LP (ESBA, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $2.45 billion. The current price of the stock is $9.05, reflecting an 8.64% gain over the past week and a 13.04% gain over the past three months. According to GF Value, the stock is currently fairly valued at $9.85, consistent with its past GF Value of $9.83. This stability in valuation suggests that the recent price movements align with the company's intrinsic value.
Introduction to Empire State Realty OP LP
Empire State Realty OP LP, operating within the REITs industry, is a key player in the management and operation of properties in Manhattan and the greater New York metropolitan area. The company is divided into two business segments: Real Estate and Observatory. The Real Estate segment is the primary revenue generator, focusing on the ownership, management, and repositioning of real estate assets. Meanwhile, the Observatory segment capitalizes on the iconic Empire State Building's observatories. 
Assessing Empire State Realty's Profitability
Empire State Realty boasts a Profitability Rank of 7/10, indicating a strong position within the industry. The company's operating margin stands at an impressive 19.90%, outperforming 683 companies in the sector. Additionally, the return on equity (ROE) is 5.36%, surpassing 57.39% of its peers. The return on assets (ROA) at 2.15% and return on invested capital (ROIC) at 3.73% further demonstrate the company's ability to generate profits relative to its assets and invested capital. With eight years of profitability over the past decade, Empire State Realty's financial health appears robust.
Growth Trajectory of Empire State Realty
The company's Growth Rank is currently at 4/10. While this may not seem particularly high, it's important to note that the 3-Year Revenue Growth Rate per Share is 3.10%, which is better than 60.38% of 631 companies in the same industry. The 5-Year Revenue Growth Rate per Share is modest at 0.60%, but the 3-Year EPS without NRI Growth Rate has seen a decline of 20.40%. Despite this, Empire State Realty's growth metrics suggest a stable revenue increase, albeit with some challenges in earnings growth.
Competitive Landscape
Empire State Realty faces competition from several companies with similar market capitalizations. Equity Commonwealth (EQC, Financial) has a market cap of $1.99 billion, SL Green Realty Corp (SLG, Financial) is valued at $2.39 billion, and Highwoods Properties Inc (HIW, Financial) stands at $1.98 billion. These competitors are closely matched in size, making the industry landscape highly competitive.
Conclusion
In conclusion, Empire State Realty OP LP has shown a strong stock performance with a significant gain over the past three months. The company's financial health is solid, with a high profitability rank and operating margin. While growth rates in revenue per share are stable, earnings growth has faced some headwinds. In the competitive REITs industry, Empire State Realty holds its ground with a fair valuation and a promising outlook for value investors. As the company continues to navigate the dynamic real estate market of New York, investors will be watching closely to see if the recent stock price rally can be sustained in the long term.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
