Apartment Income REIT Corp (AIRC) Fundamental Analysis & Valuation

NYSE:AIRC • US03750L1098

Current stock price

39.08 USD
-0.01 (-0.03%)
At close:
39.09 USD
+0.01 (+0.03%)
After Hours:

This AIRC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AIRC Profitability Analysis

1.1 Basic Checks

  • In the past year AIRC has reported negative net income.
  • AIRC had a positive operating cash flow in the past year.
  • AIRC had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years AIRC had a positive operating cash flow.
AIRC Yearly Net Income VS EBIT VS OCF VS FCFAIRC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 500M -500M

1.2 Ratios

  • AIRC's Return On Assets of 10.32% is amongst the best of the industry. AIRC outperforms 100.00% of its industry peers.
  • AIRC has a Return On Equity of 28.05%. This is amongst the best in the industry. AIRC outperforms 100.00% of its industry peers.
  • The Return On Invested Capital of AIRC (1.97%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for AIRC is in line with the industry average of 2.73%.
  • The last Return On Invested Capital (1.97%) for AIRC is above the 3 year average (1.72%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.32%
ROE 28.05%
ROIC 1.97%
ROA(3y)10.36%
ROA(5y)7.23%
ROE(3y)31.18%
ROE(5y)22.35%
ROIC(3y)1.72%
ROIC(5y)N/A
AIRC Yearly ROA, ROE, ROICAIRC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 79.54%, AIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • AIRC has a Operating Margin (18.28%) which is in line with its industry peers.
  • The Gross Margin of AIRC (66.63%) is better than 90.48% of its industry peers.
  • AIRC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.28%
PM (TTM) 79.54%
GM 66.63%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.5%
GM growth 5YN/A
AIRC Yearly Profit, Operating, Gross MarginsAIRC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 40 60 80 100

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1

2. AIRC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIRC is destroying value.
  • The number of shares outstanding for AIRC has been reduced compared to 1 year ago.
  • The debt/assets ratio for AIRC has been reduced compared to a year ago.
AIRC Yearly Shares OutstandingAIRC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M
AIRC Yearly Total Debt VS Total AssetsAIRC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

  • AIRC has an Altman-Z score of 0.80. This is a bad value and indicates that AIRC is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.80, AIRC is in line with its industry, outperforming 42.86% of the companies in the same industry.
  • AIRC has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
  • AIRC's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. AIRC is outperformed by 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.47
Debt/FCF N/A
Altman-Z 0.8
ROIC/WACC0.29
WACC6.73%
AIRC Yearly LT Debt VS Equity VS FCFAIRC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

  • AIRC has a Current Ratio of 0.29. This is a bad value and indicates that AIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.29, AIRC is doing worse than 66.67% of the companies in the same industry.
  • AIRC has a Quick Ratio of 0.29. This is a bad value and indicates that AIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.29, AIRC is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.29
Quick Ratio 0.29
AIRC Yearly Current Assets VS Current LiabilitesAIRC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AIRC Growth Analysis

3.1 Past

  • AIRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -111.01%.
  • AIRC shows a decrease in Revenue. In the last year, the revenue decreased by -0.05%.
  • AIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.45% yearly.
EPS 1Y (TTM)-111.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y4.45%
Revenue growth 5YN/A
Sales Q2Q%-7.72%

3.2 Future

  • AIRC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.58% yearly.
  • The Revenue is expected to grow by 2.23% on average over the next years.
EPS Next Y135.7%
EPS Next 2Y50.17%
EPS Next 3Y34.51%
EPS Next 5Y26.58%
Revenue Next Year-2.37%
Revenue Next 2Y0.47%
Revenue Next 3Y1.7%
Revenue Next 5Y2.23%

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AIRC Yearly Revenue VS EstimatesAIRC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M
AIRC Yearly EPS VS EstimatesAIRC Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 2 3

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2

4. AIRC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for AIRC. In the last year negative earnings were reported.
  • The Price/Forward Earnings ratio is 383.14, which means the current valuation is very expensive for AIRC.
  • Based on the Price/Forward Earnings ratio, AIRC is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. AIRC is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 383.14
AIRC Price Earnings VS Forward Price EarningsAIRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 -100 200 300

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIRC is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.86
AIRC Per share dataAIRC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIRC does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of AIRC may justify a higher PE ratio.
  • AIRC's earnings are expected to grow with 34.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.17%
EPS Next 3Y34.51%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. AIRC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.45%, AIRC has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 46.64, AIRC has a dividend in line with its industry peers.
  • AIRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.45%

5.2 History

  • AIRC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
AIRC Yearly Dividends per shareAIRC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

  • AIRC pays out 41.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.31%
EPS Next 2Y50.17%
EPS Next 3Y34.51%
AIRC Yearly Income VS Free CF VS DividendAIRC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 0 500M -500M
AIRC Dividend Payout.AIRC Dividend Payout, showing the Payout Ratio.AIRC Dividend Payout.PayoutRetained Earnings

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AIRC Fundamentals: All Metrics, Ratios and Statistics

Apartment Income REIT Corp

NYSE:AIRC (6/27/2024, 8:04:00 PM)

After market: 39.09 +0.01 (+0.03%)

39.08

-0.01 (-0.03%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)05-08
Earnings (Next)07-25
Inst Owners12.48%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change0%
Market Cap5.67B
Revenue(TTM)803.88M
Net Income(TTM)639.37M
Analysts52.86
Price Target39.84 (1.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.45%
Yearly Dividend1.81
Dividend Growth(5Y)N/A
DP41.31%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1388.93%
Min EPS beat(2)-2550.98%
Max EPS beat(2)-226.87%
EPS beat(4)0
Avg EPS beat(4)-784.26%
Min EPS beat(4)-2550.98%
Max EPS beat(4)-149.02%
EPS beat(8)2
Avg EPS beat(8)-320.08%
EPS beat(12)2
Avg EPS beat(12)-420.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-3.41%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-3.87%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-0.62%
Revenue beat(8)2
Avg Revenue beat(8)-2.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.31%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.59%
PT rev (3m)7.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)16.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 383.14
P/S 7.05
P/FCF N/A
P/OCF 15.82
P/B 2.49
P/tB 2.52
EV/EBITDA 18.86
EPS(TTM)-0.37
EYN/A
EPS(NY)0.1
Fwd EY0.26%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)2.47
OCFY6.32%
SpS5.54
BVpS15.71
TBVpS15.49
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 10.32%
ROE 28.05%
ROCE 2.49%
ROIC 1.97%
ROICexc 2%
ROICexgc 2.13%
OM 18.28%
PM (TTM) 79.54%
GM 66.63%
FCFM N/A
ROA(3y)10.36%
ROA(5y)7.23%
ROE(3y)31.18%
ROE(5y)22.35%
ROIC(3y)1.72%
ROIC(5y)N/A
ROICexc(3y)1.74%
ROICexc(5y)N/A
ROICexgc(3y)1.81%
ROICexgc(5y)N/A
ROCE(3y)2.17%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.5%
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 1.47
Debt/FCF N/A
Debt/EBITDA 7.07
Cap/Depr 132.05%
Cap/Sales 53.66%
Interest Coverage 250
Cash Conversion 75.67%
Profit Quality N/A
Current Ratio 0.29
Quick Ratio 0.29
Altman-Z 0.8
F-Score7
WACC6.73%
ROIC/WACC0.29
Cap/Depr(3y)210.28%
Cap/Depr(5y)175.27%
Cap/Sales(3y)92.25%
Cap/Sales(5y)76.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-111.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y135.7%
EPS Next 2Y50.17%
EPS Next 3Y34.51%
EPS Next 5Y26.58%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y4.45%
Revenue growth 5YN/A
Sales Q2Q%-7.72%
Revenue Next Year-2.37%
Revenue Next 2Y0.47%
Revenue Next 3Y1.7%
Revenue Next 5Y2.23%
EBIT growth 1Y9.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year265.73%
EBIT Next 3Y56.79%
EBIT Next 5Y32.31%
FCF growth 1Y61.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.53%
OCF growth 3Y9.39%
OCF growth 5YN/A

Apartment Income REIT Corp / AIRC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for Apartment Income REIT Corp?

ChartMill assigns a fundamental rating of 3 / 10 to AIRC.


What is the valuation status of Apartment Income REIT Corp (AIRC) stock?

ChartMill assigns a valuation rating of 2 / 10 to Apartment Income REIT Corp (AIRC). This can be considered as Overvalued.


Can you provide the profitability details for Apartment Income REIT Corp?

Apartment Income REIT Corp (AIRC) has a profitability rating of 6 / 10.


What is the earnings growth outlook for Apartment Income REIT Corp?

The Earnings per Share (EPS) of Apartment Income REIT Corp (AIRC) is expected to grow by 135.7% in the next year.


Can you provide the dividend sustainability for AIRC stock?

The dividend rating of Apartment Income REIT Corp (AIRC) is 3 / 10 and the dividend payout ratio is 41.31%.