Apartment Income REIT Corp (AIRC) Stock Fundamental Analysis
USA - NYSE:AIRC - US03750L1098 - REIT
39.08 USD
-0.01 (-0.03%)
39.09 USD
+0.01 (+0.03%)
AIRC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of AIRC while its profitability can be described as average. AIRC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AIRC had negative earnings in the past year.
AIRC had a positive operating cash flow in the past year.
AIRC had positive earnings in 4 of the past 5 years.
In the past 5 years AIRC always reported a positive cash flow from operatings.
1.2 Ratios
AIRC has a better Return On Assets (10.32%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 28.05%, AIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AIRC has a Return On Invested Capital (1.97%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIRC is in line with the industry average of 2.59%.
The 3 year average ROIC (1.72%) for AIRC is below the current ROIC(1.97%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 79.54%, AIRC belongs to the top 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.
Looking at the Gross Margin, with a value of 66.63%, AIRC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Gross Margin of AIRC has remained more or less at the same level.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
AIRC 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 AIRC has been reduced compared to 1 year ago.
Compared to 1 year ago, AIRC has an improved debt to assets ratio.
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.
AIRC's Altman-Z score of 0.80 is in line compared to the rest of the industry. AIRC outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that AIRC has dependencies on debt 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.29
WACC6.73%
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.
AIRC's Current ratio of 0.29 is on the low side compared to the rest of the industry. AIRC is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.29 indicates that AIRC may have some problems paying its short term obligations.
AIRC's Quick ratio of 0.29 is on the low side compared to the rest of the industry. AIRC is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for AIRC have decreased strongly by -111.01% in the last year.
Looking at the last year, AIRC shows a decrease in Revenue. The Revenue has decreased by -0.05% in the last year.
Measured over the past years, AIRC shows a small growth in Revenue. The Revenue has been growing by 4.45% on average per year.
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.
Based on estimates for the next years, AIRC will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
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.
4. Valuation
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 61.90% of the companies in the same industry.
AIRC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 383.14 |
4.2 Price Multiples
AIRC's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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%
5. Dividend
5.1 Amount
AIRC has a Yearly Dividend Yield of 3.45%.
AIRC's Dividend Yield is comparable with the industry average which is at 7.22.
Compared to an average S&P500 Dividend Yield of 2.44, AIRC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
AIRC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
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%
39.08
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners12.48%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner ChangeN/A
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
Can you provide the ChartMill fundamental rating for Apartment Income REIT Corp?
ChartMill assigns a fundamental rating of 3 / 10 to AIRC.
Can you provide the valuation status for Apartment Income REIT Corp?
ChartMill assigns a valuation rating of 2 / 10 to Apartment Income REIT Corp (AIRC). This can be considered as Overvalued.
What is the profitability of AIRC stock?
Apartment Income REIT Corp (AIRC) has a profitability rating of 6 / 10.
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%.