ARMADA HOFFLER PROPERTIES IN (AHH) Stock Fundamental Analysis
NYSE:AHH - New York Stock Exchange, Inc. - US04208T1088 - REIT - Currency: USD
Taking everything into account, AHH scores 3 out of 10 in our fundamental rating. AHH was compared to 130 industry peers in the Diversified REITs industry. There are concerns on the financial health of AHH while its profitability can be described as average. AHH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AHH had positive earnings in the past year.
In the past year AHH had a positive cash flow from operations.
AHH had positive earnings in 4 of the past 5 years.
In the past 5 years AHH always reported a positive cash flow from operatings.
1.2 Ratios
AHH's Return On Assets of 0.29% is in line compared to the rest of the industry. AHH outperforms 44.19% of its industry peers.
AHH has a Return On Equity (1.10%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.34%, AHH is in the better half of the industry, outperforming 65.89% of the companies in the same industry.
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 3.16%.
The last Return On Invested Capital (3.34%) for AHH is above the 3 year average (3.02%), which is a sign of increasing profitability.
| 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
AHH has a Profit Margin (1.15%) which is in line with its industry peers.
AHH's Profit Margin has declined in the last couple of years.
The Operating Margin of AHH (13.68%) is worse than 68.22% of its industry peers.
In the last couple of years the Operating Margin of AHH has declined.
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
AHH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AHH has been increased compared to 1 year ago.
The number of shares outstanding for AHH has been increased compared to 5 years ago.
AHH has a better debt/assets ratio than last year.
2.2 Solvency
AHH has an Altman-Z score of 0.43. This is a bad value and indicates that AHH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AHH (0.43) is comparable to the rest of the industry.
AHH has a debt to FCF ratio of 117.02. This is a negative value and a sign of low solvency as AHH would need 117.02 years to pay back of all of its debts.
With a Debt to FCF ratio value of 117.02, AHH perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
A Debt/Equity ratio of 1.94 is on the high side and indicates that AHH has dependencies on debt financing.
AHH's Debt to Equity ratio of 1.94 is on the low side compared to the rest of the industry. AHH is outperformed by 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 117.02 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.46
WACC7.19%
2.3 Liquidity
A Current Ratio of 0.65 indicates that AHH may have some problems paying its short term obligations.
AHH's Current ratio of 0.65 is on the low side compared to the rest of the industry. AHH is outperformed by 68.22% 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 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.33% over the past year.
The Earnings Per Share has been decreasing by -3.62% on average over the past years.
AHH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.11%.
AHH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.46% yearly.
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
AHH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -27.18% yearly.
Based on estimates for the next years, AHH will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y-85.15%
EPS Next 2Y-36.67%
EPS Next 3Y-27.18%
EPS Next 5YN/A
Revenue Next Year-0.11%
Revenue Next 2Y2%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 58.83, the valuation of AHH can be described as expensive.
AHH's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AHH to the average of the S&P500 Index (27.41), we can say AHH is valued expensively.
The Price/Forward Earnings ratio is 51.78, which means the current valuation is very expensive for AHH.
AHH's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.19. AHH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 51.78 |
4.2 Price Multiples
74.42% of the companies in the same industry are more expensive than AHH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AHH indicates a somewhat cheap valuation: AHH is cheaper than 60.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.68 | ||
| EV/EBITDA | 11.64 |
4.3 Compensation for Growth
AHH's earnings are expected to decrease with -27.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.67%
EPS Next 3Y-27.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.95%, AHH is a good candidate for dividend investing.
AHH's Dividend Yield is rather good when compared to the industry average which is at 6.44. AHH pays more dividend than 80.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, AHH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
5.2 History
The dividend of AHH decreases each year by -0.20%.
AHH has been paying a dividend for at least 10 years, so it has 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-36.67%
EPS Next 3Y-27.18%
7.06
+0.02 (+0.28%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change0%
Ins Owners0.97%
Ins Owner Change-10.49%
Market Cap720.83M
Analysts80
Price Target8.8 (24.65%)
Short Float %2.95%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
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)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)-12.5%
EPS NQ rev (3m)16.67%
EPS NY rev (1m)-58.33%
EPS NY rev (3m)-58.33%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)1.93%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 51.78 | ||
| P/S | 1.14 | ||
| P/FCF | 59.68 | ||
| P/OCF | 10.98 | ||
| P/B | 1.1 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)0.12
EY1.7%
EPS(NY)0.14
Fwd EY1.93%
FCF(TTM)0.12
FCFY1.68%
OCF(TTM)0.64
OCFY9.11%
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 | 0.43 |
F-Score6
WACC7.19%
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-85.15%
EPS Next 2Y-36.67%
EPS Next 3Y-27.18%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%3.1%
Revenue Next Year-0.11%
Revenue Next 2Y2%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
EBIT growth 1Y13.19%
EBIT growth 3Y28.78%
EBIT growth 5Y18.79%
EBIT Next Year77.94%
EBIT Next 3Y24.19%
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%