Stock fact sheet · data as of
Phillips Edison & Co. (PECO): fair value, margin of safety and Wheel Score
Real Estate · REIT - Retail · United States · Defensive
Is PECO undervalued?
PECO closed at 37.58 on 16 Oct 2026, which is 18% above the GLS average fair value of 31.75 from 9 models. 6 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
There is a wide gap between Lynch (5.99) and DCF (101.89). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files PECO under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for PECO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 101.89 | +171% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 22.16 | -41% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 21.26 | -43% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 5.99 | -84% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 12.27 | -67% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 44.22 | +18% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 45.88 | +22% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 19.32 | -49% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 12.77 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -19.45 | -152% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 43.14 | +15% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Phillips Edison & Co. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.3/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 2.3%, ROE 4.9%, ROA 2.1% - with debt at 1.09 times equity and a free-cash-flow yield of 4.9%.
The dividend yield is 3.49% at a payout ratio of 113%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Owned Real Estate 100%, Investment Management 1% (quarter Q3 FY2018).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 2.3% |
|---|---|---|---|
| GLS Moat | 4.3 / 10 | ROE | 4.9% |
| Debt / equity | 1.09 | ROA | 2.1% |
| Free-cash-flow yield | 4.9% | Payout ratio | 113% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 58: Fair
A Wheel Score of 58 puts Phillips Edison & Co. in the Fair band - below the 70 the Sunday Scan requires. Value 5/25, Health 16/20, Moat 6/15, Premium 14/20 and Stability 17/20; the weakest part is Value (5/25).
Implied volatility is 29% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (14 of 20 points). Chain open interest is thin - 348 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.0M shares a day on a market cap of $4.8B, with a beta of 0.52 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 5 / 25 | -18% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 6 / 15 | moat 4.3/10 | |
| Premium | 14 / 20 | implied volatility 29% | |
| Stability | 17 / 20 | 1.0M shares/day, $4.8B cap, beta 0.52 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Phillips Edison & Co. reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The next ex-dividend date is 16 Nov 2026 (0.1150 per share).
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Retail
The 12 companies below are the closest to Phillips Edison & Co. by market cap within the REIT - Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| KRG Kite Realty Group Trust | 24.52 | 37.10 | +34% | 86Prime | $4.9B |
| SKT Tanger Inc. | 34.33 | 22.28 | -54% | 52Fair | $3.9B |
| MAC The Macerich Company | 23.09 | 10.03 | -130% | 45Weak | $6.8B |
| CURB Curbline Properties Corp. | 26.56 | 19.80 | -34% | 59Fair | $3.1B |
| NNN NNN REIT, Inc. | 41.15 | 37.64 | -9% | 60Fair | $7.8B |
| ADC Agree Realty Corporation | 66.56 | 51.60 | -29% | 58Fair | $8.3B |
| BRX Brixmor Property Group Inc. | 27.43 | 23.66 | -16% | 65Good | $8.4B |
| FRT Federal Realty Investment Trust | 105.68 | 74.69 | -41% | 54Fair | $9.2B |
| AKR Acadia Realty Trust | 18.53 | 8.39 | -121% | 56Fair | $2.5B |
| UE Urban Edge Properties | 19.18 | 14.88 | -29% | 53Fair | $2.4B |
| FCPT Four Corners Property Trust, Inc. | 21.80 | 22.40 | +3% | 71Good | $2.4B |
| IVT InvenTrust Properties Corp. | 29.88 | 39.63 | +25% | 76Good | $2.3B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about PECO
Is PECO undervalued right now?
No: at 37.58 the stock trades 18% above the GLS average fair value of 31.75 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of PECO and what does it mean?
PECO scores 58 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PECO?
31.75 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Phillips Edison & Co. report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PECO have listed options, and how liquid are they?
Yes. The nightly snapshot found 92 listed contracts with 348 open interest across all expiries and implied volatility of 29% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.