ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
NYSE:ARE - New York Stock Exchange, Inc. - US0152711091 - REIT - Currency: USD
ARE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While ARE is still in line with the averages on profitability rating, there are concerns on its financial health. ARE is valied quite expensively at the moment, while it does show a decent growth rate. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had positive earnings in the past year.
In the past year ARE had a positive cash flow from operations.
ARE had positive earnings in each of the past 5 years.
In the past 5 years ARE always reported a positive cash flow from operatings.
1.2 Ratios
ARE's Return On Assets of 0.35% is in line compared to the rest of the industry. ARE outperforms 45.38% of its industry peers.
ARE has a Return On Equity (0.75%) which is comparable to the rest of the industry.
The Return On Invested Capital of ARE (1.99%) is worse than 66.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARE is in line with the industry average of 3.16%.
The 3 year average ROIC (1.88%) for ARE is below the current ROIC(1.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.75% | ||
| ROIC | 1.99% |
ROA(3y)0.84%
ROA(5y)1.54%
ROE(3y)1.65%
ROE(5y)2.98%
ROIC(3y)1.88%
ROIC(5y)1.79%
1.3 Margins
ARE's Profit Margin of 4.07% is in line compared to the rest of the industry. ARE outperforms 50.77% of its industry peers.
In the last couple of years the Profit Margin of ARE has declined.
ARE has a Operating Margin of 27.83%. This is comparable to the rest of the industry: ARE outperforms 60.00% of its industry peers.
ARE's Operating Margin has been stable in the last couple of years.
ARE has a better Gross Margin (71.54%) than 65.38% of its industry peers.
ARE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 71.54% |
OM growth 3Y6.37%
OM growth 5Y0.87%
PM growth 3Y-28.91%
PM growth 5Y-16.02%
GM growth 3Y0.65%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
Compared to 1 year ago, ARE has about the same amount of shares outstanding.
Compared to 5 years ago, ARE has more shares outstanding
The debt/assets ratio for ARE is higher compared to a year ago.
2.2 Solvency
ARE has a Debt/Equity ratio of 0.72. This is a neutral value indicating ARE is somewhat dependend on debt financing.
The Debt to Equity ratio of ARE (0.72) is better than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC5.65%
2.3 Liquidity
ARE has a Current Ratio of 0.24. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
ARE has a Current ratio of 0.24. This is amonst the worse of the industry: ARE underperforms 87.69% of its industry peers.
A Quick Ratio of 0.24 indicates that ARE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.24, ARE is doing worse than 86.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.97%.
ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
The Revenue has been growing slightly by 5.93% in the past year.
Measured over the past years, ARE shows a quite strong growth in Revenue. The Revenue has been growing by 16.12% on average per year.
EPS 1Y (TTM)-28.97%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-107.22%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-1.64%
3.2 Future
ARE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.33% yearly.
ARE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.20% yearly.
EPS Next Y6.05%
EPS Next 2Y16.87%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year-2.33%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 101.21, the valuation of ARE can be described as expensive.
Based on the Price/Earnings ratio, ARE is valued a bit more expensive than 60.00% of the companies in the same industry.
ARE is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.29, which means the current valuation is very expensive for ARE.
ARE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARE is cheaper than 74.62% of the companies in the same industry.
ARE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.21 | ||
| Fwd PE | 31.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)16.73
PEG (5Y)N/A
EPS Next 2Y16.87%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 7.11%, which is a nice return.
ARE's Dividend Yield is a higher than the industry average which is at 6.64.
Compared to an average S&P500 Dividend Yield of 2.42, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
5.2 History
The dividend of ARE is nicely growing with an annual growth rate of 6.07%!
ARE has been paying a dividend for at least 10 years, so it has a reliable track record.
ARE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.07%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
691.78% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
ARE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP691.78%
EPS Next 2Y16.87%
EPS Next 3Y0.33%
76.92
+0.65 (+0.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.64%
Inst Owner Change-0.66%
Ins Owners1.1%
Ins Owner Change13.26%
Market Cap13.31B
Analysts72.22
Price Target99.45 (29.29%)
Short Float %3.72%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.11% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP691.78%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-125.69%
Min EPS beat(2)-141.07%
Max EPS beat(2)-110.31%
EPS beat(4)1
Avg EPS beat(4)-78.61%
Min EPS beat(4)-141.07%
Max EPS beat(4)6.08%
EPS beat(8)2
Avg EPS beat(8)-74.93%
EPS beat(12)4
Avg EPS beat(12)-28.32%
EPS beat(16)6
Avg EPS beat(16)-17.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)-2.09%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)0.18%
Revenue beat(8)4
Avg Revenue beat(8)-0.7%
Revenue beat(12)8
Avg Revenue beat(12)8.1%
Revenue beat(16)12
Avg Revenue beat(16)13.26%
PT rev (1m)-8.81%
PT rev (3m)-16.31%
EPS NQ rev (1m)3.44%
EPS NQ rev (3m)-18.83%
EPS NY rev (1m)5%
EPS NY rev (3m)-41.74%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.21 | ||
| Fwd PE | 31.29 | ||
| P/S | 4.13 | ||
| P/FCF | N/A | ||
| P/OCF | 9.7 | ||
| P/B | 0.76 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)0.76
EY0.99%
EPS(NY)2.46
Fwd EY3.2%
FCF(TTM)-6.12
FCFYN/A
OCF(TTM)7.93
OCFY10.31%
SpS18.63
BVpS100.96
TBVpS99.34
PEG (NY)16.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.75% | ||
| ROCE | 2.52% | ||
| ROIC | 1.99% | ||
| ROICexc | 2.02% | ||
| ROICexgc | 2.03% | ||
| OM | 27.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 71.54% | ||
| FCFM | N/A |
ROA(3y)0.84%
ROA(5y)1.54%
ROE(3y)1.65%
ROE(5y)2.98%
ROIC(3y)1.88%
ROIC(5y)1.79%
ROICexc(3y)1.91%
ROICexc(5y)1.83%
ROICexgc(3y)1.93%
ROICexgc(5y)1.85%
ROCE(3y)2.37%
ROCE(5y)2.27%
ROICexcg growth 3Y14.19%
ROICexcg growth 5Y1.72%
ROICexc growth 3Y14.6%
ROICexc growth 5Y2.01%
OM growth 3Y6.37%
OM growth 5Y0.87%
PM growth 3Y-28.91%
PM growth 5Y-16.02%
GM growth 3Y0.65%
GM growth 5Y0.27%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 193.33% | ||
| Cap/Sales | 75.39% | ||
| Interest Coverage | 5.64 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | N/A |
F-Score5
WACC5.65%
ROIC/WACC0.35
Cap/Depr(3y)392.1%
Cap/Depr(5y)533.59%
Cap/Sales(3y)146.17%
Cap/Sales(5y)201.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.97%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-107.22%
EPS Next Y6.05%
EPS Next 2Y16.87%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)5.93%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-1.64%
Revenue Next Year-2.33%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
EBIT growth 1Y4.51%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year177.35%
EBIT Next 3Y42.24%
EBIT Next 5Y33.84%
FCF growth 1Y67.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.66%
OCF growth 3Y14.2%
OCF growth 5Y17.08%