Apartment Income REIT Corp (AIRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIRC - US03750L1098 - REIT
39.08 USD
-0.01 (-0.03%)
39.09 USD
+0.01 (+0.03%)
Taking everything into account, AIRC scores 3 out of 10 in our fundamental rating. AIRC was compared to 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 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.
In the past year AIRC had a positive cash flow from operations.
Of the past 5 years AIRC 4 years were profitable.
Each year in the past 5 years AIRC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.32%, AIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 1.97%, AIRC is in line with its industry, outperforming 42.86% of the companies in the same 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 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
AIRC has a better Profit Margin (79.54%) than 100.00% of its industry peers.
Looking at the Operating Margin, with a value of 18.28%, AIRC is in line with its industry, outperforming 52.38% of the companies in the same industry.
AIRC's Gross Margin of 66.63% is amongst the best of the industry. AIRC outperforms 90.48% of its industry peers.
AIRC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIRC is destroying value.
Compared to 1 year ago, AIRC has less shares outstanding
AIRC has a better debt/assets ratio than last year.
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 has a Altman-Z score of 0.80. This is comparable to the rest of the industry: AIRC outperforms 42.86% of its industry peers.
AIRC has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
AIRC has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: AIRC underperforms 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
A Current Ratio of 0.29 indicates that AIRC may have some problems paying its short term obligations.
The Current ratio of AIRC (0.29) is worse than 66.67% of its industry peers.
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.
The Quick ratio of AIRC (0.29) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
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.
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
Based on estimates for the next years, AIRC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.58% on average per year.
AIRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
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
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
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 383.14.
61.90% of the companies in the same industry are cheaper than AIRC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AIRC to the average of the S&P500 Index (23.96), we can say AIRC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 383.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AIRC.
| 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 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%
5. Dividend
5.1 Amount
AIRC has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 7.26, AIRC has a dividend in line with its industry peers.
AIRC's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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 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 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%.