ARMADA HOFFLER PROPERTIES IN (AHH) Stock Fundamental Analysis
NYSE:AHH - New York Stock Exchange, Inc. - US04208T1088 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to AHH. AHH was compared to 129 industry peers in the Diversified REITs industry. AHH has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, AHH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AHH was profitable.
In the past year AHH had a positive cash flow from operations.
Of the past 5 years AHH 4 years were profitable.
In the past 5 years AHH always reported a positive cash flow from operatings.
1.2 Ratios
AHH has a Return On Assets of 0.29%. This is comparable to the rest of the industry: AHH outperforms 44.96% of its industry peers.
AHH has a Return On Equity (1.10%) which is comparable to the rest of the industry.
The Return On Invested Capital of AHH (3.34%) is better than 65.12% of its industry peers.
AHH had an Average Return On Invested Capital over the past 3 years of 3.02%. This is in line with the industry average of 3.15%.
The 3 year average ROIC (3.02%) for AHH is below the current ROIC(3.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 1.1% | ||
| ROIC | 3.34% |
ROA(3y)1.22%
ROA(5y)1.06%
ROE(3y)4.26%
ROE(5y)3.76%
ROIC(3y)3.02%
ROIC(5y)2.68%
1.3 Margins
Looking at the Profit Margin, with a value of 1.15%, AHH is in line with its industry, outperforming 41.86% of the companies in the same industry.
AHH's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 13.68%, AHH is not doing good in the industry: 68.22% of the companies in the same industry are doing better.
AHH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 31.96%, AHH is doing worse than 89.92% of the companies in the same industry.
AHH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.68% | ||
| PM (TTM) | 1.15% | ||
| GM | 31.96% |
OM growth 3Y-5.03%
OM growth 5Y-3%
PM growth 3Y-2.11%
PM growth 5Y-16.54%
GM growth 3Y-13.85%
GM growth 5Y-7.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AHH is destroying value.
AHH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AHH has more shares outstanding
The debt/assets ratio for AHH has been reduced compared to a year ago.
2.2 Solvency
AHH has an Altman-Z score of 0.42. This is a bad value and indicates that AHH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.42, AHH is in line with its industry, outperforming 45.74% of the companies in the same industry.
The Debt to FCF ratio of AHH is 117.02, which is on the high side as it means it would take AHH, 117.02 years of fcf income to pay off all of its debts.
AHH's Debt to FCF ratio of 117.02 is in line compared to the rest of the industry. AHH outperforms 57.36% of its industry peers.
AHH has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
AHH has a Debt to Equity ratio of 1.94. This is in the lower half of the industry: AHH underperforms 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 117.02 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.46
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.65 indicates that AHH may have some problems paying its short term obligations.
AHH has a worse Current ratio (0.65) than 65.12% of its industry peers.
A Quick Ratio of 0.63 indicates that AHH may have some problems paying its short term obligations.
AHH has a Quick ratio of 0.63. This is in the lower half of the industry: AHH underperforms 68.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
AHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
AHH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.62% yearly.
Looking at the last year, AHH shows a very negative growth in Revenue. The Revenue has decreased by -12.11% in the last year.
Measured over the past years, AHH shows a very strong growth in Revenue. The Revenue has been growing by 22.46% on average per year.
EPS 1Y (TTM)33.33%
EPS 3Y-4.47%
EPS 5Y-3.62%
EPS Q2Q%-129.41%
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%3.1%
3.2 Future
Based on estimates for the next years, AHH will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.36% on average per year.
Based on estimates for the next years, AHH will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y-64.35%
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
EPS Next 5YN/A
Revenue Next Year-2.08%
Revenue Next 2Y-0.06%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AHH is valuated quite expensively with a Price/Earnings ratio of 56.92.
AHH's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.91, AHH is valued quite expensively.
A Price/Forward Earnings ratio of 52.02 indicates a quite expensive valuation of AHH.
The rest of the industry has a similar Price/Forward Earnings ratio as AHH.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, AHH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.92 | ||
| Fwd PE | 52.02 |
4.2 Price Multiples
AHH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AHH is cheaper than 71.32% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AHH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.74 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
A cheap valuation may be justified as AHH's earnings are expected to decrease with -17.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
5. Dividend
5.1 Amount
AHH has a Yearly Dividend Yield of 7.66%, which is a nice return.
The stock price of AHH dropped by -23.43% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.61, AHH pays a bit more dividend than its industry peers.
AHH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
5.2 History
The dividend of AHH decreases each year by -0.20%.
AHH has paid a dividend for at least 10 years, which is a reliable track record.
AHH has decreased its dividend recently.
Dividend Growth(5Y)-0.2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
1211.22% of the earnings are spent on dividend by AHH. This is not a sustainable payout ratio.
AHH's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP1211.22%
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
6.83
+0.01 (+0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.2%
Inst Owner Change-5.31%
Ins Owners1.53%
Ins Owner Change-39.16%
Market Cap697.34M
Analysts77.5
Price Target9.75 (42.75%)
Short Float %2.25%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
Yearly Dividend1.15
Dividend Growth(5Y)-0.2%
DP1211.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)205.28%
Min EPS beat(2)-347.52%
Max EPS beat(2)758.09%
EPS beat(4)1
Avg EPS beat(4)16.26%
Min EPS beat(4)-347.52%
Max EPS beat(4)758.09%
EPS beat(8)3
Avg EPS beat(8)27.69%
EPS beat(12)6
Avg EPS beat(12)51.98%
EPS beat(16)10
Avg EPS beat(16)51.91%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-0.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.04%
Revenue beat(12)8
Avg Revenue beat(12)32.93%
Revenue beat(16)12
Avg Revenue beat(16)36.04%
PT rev (1m)-4.97%
PT rev (3m)-17.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25%
EPS NY rev (1m)0%
EPS NY rev (3m)-25%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-5.9%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-4.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.92 | ||
| Fwd PE | 52.02 | ||
| P/S | 1.11 | ||
| P/FCF | 57.74 | ||
| P/OCF | 10.62 | ||
| P/B | 1.06 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)0.12
EY1.76%
EPS(NY)0.13
Fwd EY1.92%
FCF(TTM)0.12
FCFY1.73%
OCF(TTM)0.64
OCFY9.41%
SpS6.17
BVpS6.44
TBVpS5.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 1.1% | ||
| ROCE | 3.92% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 3.65% | ||
| OM | 13.68% | ||
| PM (TTM) | 1.15% | ||
| GM | 31.96% | ||
| FCFM | 1.92% |
ROA(3y)1.22%
ROA(5y)1.06%
ROE(3y)4.26%
ROE(5y)3.76%
ROIC(3y)3.02%
ROIC(5y)2.68%
ROICexc(3y)3.1%
ROICexc(5y)2.75%
ROICexgc(3y)3.34%
ROICexgc(5y)2.94%
ROCE(3y)3.55%
ROCE(5y)3.15%
ROICexcg growth 3Y20.77%
ROICexcg growth 5Y12.99%
ROICexc growth 3Y20.3%
ROICexc growth 5Y12.79%
OM growth 3Y-5.03%
OM growth 5Y-3%
PM growth 3Y-2.11%
PM growth 5Y-16.54%
GM growth 3Y-13.85%
GM growth 5Y-7.04%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 117.02 | ||
| Debt/EBITDA | 7.12 | ||
| Cap/Depr | 57.38% | ||
| Cap/Sales | 8.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.57% | ||
| Profit Quality | 167.31% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.42 |
F-Score6
WACC7.3%
ROIC/WACC0.46
Cap/Depr(3y)149.29%
Cap/Depr(5y)164.85%
Cap/Sales(3y)23.05%
Cap/Sales(5y)29.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y-4.47%
EPS 5Y-3.62%
EPS Q2Q%-129.41%
EPS Next Y-64.35%
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%3.1%
Revenue Next Year-2.08%
Revenue Next 2Y-0.06%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
EBIT growth 1Y13.19%
EBIT growth 3Y28.78%
EBIT growth 5Y18.79%
EBIT Next Year88.7%
EBIT Next 3Y24.62%
EBIT Next 5YN/A
FCF growth 1Y188.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.96%
OCF growth 3Y7.09%
OCF growth 5Y10.6%