APARTMENT INCOME REIT CO (AIRC)

US03750L1098 - REIT

32.47  +0.54 (+1.69%)

After market: 32.47 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AIRC. AIRC was compared to 21 industry peers in the Residential REITs industry. AIRC has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIRC is valued expensive and it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

AIRC had negative earnings in the past year.
In the past year AIRC had a positive cash flow from operations.
AIRC had positive earnings in 4 of the past 5 years.
AIRC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.34%, AIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AIRC's Return On Equity of 26.98% is amongst the best of the industry. AIRC outperforms 100.00% of its industry peers.
The Return On Invested Capital of AIRC (2.04%) 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 2.53%.
The 3 year average ROIC (1.72%) for AIRC is below the current ROIC(2.04%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.34%
ROE 26.98%
ROIC 2.04%
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

With an excellent Profit Margin value of 77.35%, AIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AIRC has a Operating Margin (18.34%) which is in line with its industry peers.
The Gross Margin of AIRC (66.35%) is better than 90.48% of its industry peers.
In the last couple of years the Gross Margin of AIRC has remained more or less at the same level.
Industry RankSector Rank
OM 18.34%
PM (TTM) 77.35%
GM 66.35%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.5%
GM growth 5YN/A

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIRC is destroying value.
AIRC has less shares outstanding than it did 1 year ago.
The debt/assets ratio for AIRC has been reduced compared to a year ago.

2.2 Solvency

AIRC has an Altman-Z score of 0.70. 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 0.70 is in line compared to the rest of the industry. AIRC outperforms 42.86% of its industry peers.
AIRC has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.37, AIRC is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC0.31
WACC6.55%

2.3 Liquidity

A Current Ratio of 0.31 indicates that AIRC may have some problems paying its short term obligations.
AIRC's Current ratio of 0.31 is on the low side compared to the rest of the industry. AIRC is outperformed by 61.90% of its industry peers.
A Quick Ratio of 0.31 indicates that AIRC may have some problems paying its short term obligations.
With a Quick ratio value of 0.31, AIRC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.31
Quick Ratio 0.31

3

3. Growth

3.1 Past

The earnings per share for AIRC have decreased strongly by -112.46% in the last year.
AIRC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.00%.
AIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.45% yearly.
EPS 1Y (TTM)-112.46%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-105.07%
Revenue 1Y (TTM)6%
Revenue growth 3Y4.45%
Revenue growth 5YN/A
Revenue growth Q2Q-5.55%

3.2 Future

AIRC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.32% yearly.
Based on estimates for the next years, AIRC will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y130.6%
EPS Next 2Y62.01%
EPS Next 3Y40.36%
EPS Next 5Y37.32%
Revenue Next Year-1.14%
Revenue Next 2Y1.57%
Revenue Next 3Y2.5%
Revenue Next 5Y4.61%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AIRC. In the last year negative earnings were reported.
AIRC is valuated quite expensively with a Price/Forward Earnings ratio of 265.28.
Based on the Price/Forward Earnings ratio, AIRC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, AIRC is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 265.28

4.2 Price Multiples

AIRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AIRC is cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.87

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.
AIRC has a very decent profitability rating, which may justify a higher PE ratio.
AIRC's earnings are expected to grow with 40.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y62.01%
EPS Next 3Y40.36%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.60%, AIRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, AIRC pays a better dividend. On top of this AIRC pays more dividend than 80.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AIRC pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.6%

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 41.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.95%
EPS Next 2Y62.01%
EPS Next 3Y40.36%

APARTMENT INCOME REIT CO

NYSE:AIRC (3/28/2024, 8:04:00 PM)

After market: 32.47 0 (0%)

32.47

+0.54 (+1.69%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.71B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.6%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 265.28
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.34%
ROE 26.98%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.34%
PM (TTM) 77.35%
GM 66.35%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.31
Quick Ratio 0.31
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-112.46%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y130.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6%
Revenue growth 3Y4.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y