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Apartment Income REIT Corp (AIRC) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:AIRC - US03750L1098 - REIT

39.08 USD
-0.01 (-0.03%)
Last: 6/27/2024, 8:04:00 PM
39.09 USD
+0.01 (+0.03%)
After Hours: 6/27/2024, 8:04:00 PM
Fundamental Rating

3

AIRC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 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 has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year AIRC has reported negative net income.
  • 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.
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

  • The Return On Assets of AIRC (10.32%) is better 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.
  • 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 2.59%.
  • 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

  • AIRC's Profit Margin of 79.54% is amongst the best of the industry. AIRC outperforms 100.00% of its industry peers.
  • AIRC has a Operating Margin of 18.28%. This is comparable to the rest of the industry: AIRC outperforms 52.38% of its industry peers.
  • AIRC has a better Gross Margin (66.63%) 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 18.28%
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. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIRC is destroying value.
  • The number of shares outstanding for AIRC has been reduced compared to 1 year ago.
  • AIRC has a better debt/assets ratio than last year.
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.
  • A Debt/Equity ratio of 1.47 is on the high side and indicates that AIRC has dependencies on debt financing.
  • AIRC has a worse Debt to Equity ratio (1.47) than 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

  • A Current Ratio of 0.29 indicates that AIRC may have some problems paying 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.
  • AIRC has a Quick ratio of 0.29. This is in the lower half of the industry: AIRC underperforms 61.90% of its industry peers.
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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3

3. Growth

3.1 Past

  • AIRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -111.01%.
  • Looking at the last year, AIRC shows a decrease in Revenue. The Revenue has decreased by -0.05% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 26.58% on average over the next years. This is a very strong growth
  • 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.
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. Valuation

4.1 Price/Earnings Ratio

  • AIRC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • With a Price/Forward Earnings ratio of 383.14, AIRC can be considered very expensive at the moment.
  • AIRC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AIRC is more expensive than 61.90% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, AIRC is valued quite expensively.
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as AIRC.
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.
  • AIRC has a very decent profitability rating, which 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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3

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 32.52.
  • AIRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
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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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 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%.