ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
NYSE:ARE - New York Stock Exchange, Inc. - US0152711091 - REIT - Currency: USD
Overall ARE gets a fundamental rating of 4 out of 10. We evaluated ARE 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARE was profitable.
ARE had a positive operating cash flow in the past year.
In the past 5 years ARE has always been profitable.
ARE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.82%, ARE perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
With a Return On Equity value of 1.73%, ARE perfoms like the industry average, outperforming 51.54% of the companies in the same industry.
The Return On Invested Capital of ARE (2.14%) is worse than 63.85% of its industry peers.
ARE had an Average Return On Invested Capital over the past 3 years of 1.88%. This is in line with the industry average of 3.17%.
The last Return On Invested Capital (2.14%) for ARE is above the 3 year average (1.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.73% | ||
| ROIC | 2.14% |
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
The Profit Margin of ARE (9.57%) is better than 61.54% of its industry peers.
In the last couple of years the Profit Margin of ARE has declined.
Looking at the Operating Margin, with a value of 29.49%, ARE is in the better half of the industry, outperforming 63.85% of the companies in the same industry.
In the last couple of years the Operating Margin of ARE has remained more or less at the same level.
ARE has a better Gross Margin (71.88%) than 65.38% of its industry peers.
In the last couple of years the Gross Margin of ARE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.49% | ||
| PM (TTM) | 9.57% | ||
| GM | 71.88% |
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
ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ARE has about the same amout of shares outstanding than it did 1 year ago.
ARE has more shares outstanding than it did 5 years ago.
ARE has a worse debt/assets ratio than last year.
2.2 Solvency
ARE has a Debt/Equity ratio of 0.65. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE has a Debt to Equity ratio of 0.65. This is amongst the best in the industry. ARE outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC5.67%
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 worse Current ratio (0.24) than 90.00% of its industry peers.
A Quick Ratio of 0.24 indicates that ARE may have some problems paying its short term obligations.
ARE's Quick ratio of 0.24 is on the low side compared to the rest of the industry. ARE is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 233.33% over the past year.
The earnings per share for ARE have been decreasing by -10.24% on average. This is quite bad
Looking at the last year, ARE shows a quite strong growth in Revenue. The Revenue has grown by 9.01% in the last year.
The Revenue has been growing by 16.12% on average over the past years. This is quite good.
EPS 1Y (TTM)233.33%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%29.63%
Revenue 1Y (TTM)9.01%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%2.78%
3.2 Future
ARE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.55% yearly.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y82.02%
EPS Next 2Y39.17%
EPS Next 3Y19.55%
EPS Next 5YN/A
Revenue Next Year-1.85%
Revenue Next 2Y0.95%
Revenue Next 3Y-2.35%
Revenue Next 5Y3.66%
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
ARE is valuated quite expensively with a Price/Earnings ratio of 42.16.
The rest of the industry has a similar Price/Earnings ratio as ARE.
ARE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.78.
A Price/Forward Earnings ratio of 23.16 indicates a rather expensive valuation of ARE.
ARE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARE is cheaper than 85.38% of the companies in the same industry.
ARE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.16 | ||
| Fwd PE | 23.16 |
4.2 Price Multiples
68.46% of the companies in the same industry are more expensive than ARE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
ARE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARE has a very decent profitability rating, which may justify a higher PE ratio.
ARE's earnings are expected to grow with 19.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y39.17%
EPS Next 3Y19.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.83%, ARE is a good candidate for dividend investing.
The stock price of ARE dropped by -25.34% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 16.32, ARE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
5.2 History
The dividend of ARE is nicely growing with an annual growth rate of 6.07%!
ARE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ARE decreased in the last 3 years.
Dividend Growth(5Y)6.07%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ARE pays out 290.27% of its income as dividend. This is not a sustainable payout ratio.
ARE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP290.27%
EPS Next 2Y39.17%
EPS Next 3Y19.55%
75.88
-1.38 (-1.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change-41.09%
Ins Owners1.06%
Ins Owner Change8.38%
Market Cap13.13B
Analysts72.22
Price Target116.2 (53.14%)
Short Float %2.17%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP290.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-67.5%
Min EPS beat(2)-141.07%
Max EPS beat(2)6.08%
EPS beat(4)2
Avg EPS beat(4)-46.21%
Min EPS beat(4)-141.07%
Max EPS beat(4)19.3%
EPS beat(8)2
Avg EPS beat(8)-66.65%
EPS beat(12)4
Avg EPS beat(12)-37.98%
EPS beat(16)6
Avg EPS beat(16)-16.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)0.76%
Revenue beat(8)5
Avg Revenue beat(8)0.69%
Revenue beat(12)9
Avg Revenue beat(12)11.19%
Revenue beat(16)13
Avg Revenue beat(16)15.03%
PT rev (1m)-3.66%
PT rev (3m)-5.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.16 | ||
| Fwd PE | 23.16 | ||
| P/S | 4.06 | ||
| P/FCF | N/A | ||
| P/OCF | 8.72 | ||
| P/B | 0.73 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 11.51 |
EPS(TTM)1.8
EY2.37%
EPS(NY)3.28
Fwd EY4.32%
FCF(TTM)-6.74
FCFYN/A
OCF(TTM)8.7
OCFY11.46%
SpS18.69
BVpS103.41
TBVpS101.65
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.73% | ||
| ROCE | 2.71% | ||
| ROIC | 2.14% | ||
| ROICexc | 2.18% | ||
| ROICexgc | 2.19% | ||
| OM | 29.49% | ||
| PM (TTM) | 9.57% | ||
| GM | 71.88% | ||
| 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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.4 | ||
| Cap/Depr | 222.17% | ||
| Cap/Sales | 82.61% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 69.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | N/A |
F-Score7
WACC5.67%
ROIC/WACC0.38
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)233.33%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%29.63%
EPS Next Y82.02%
EPS Next 2Y39.17%
EPS Next 3Y19.55%
EPS Next 5YN/A
Revenue 1Y (TTM)9.01%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%2.78%
Revenue Next Year-1.85%
Revenue Next 2Y0.95%
Revenue Next 3Y-2.35%
Revenue Next 5Y3.66%
EBIT growth 1Y17.1%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year181.63%
EBIT Next 3Y44.44%
EBIT Next 5Y35.29%
FCF growth 1Y43.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.73%
OCF growth 3Y14.2%
OCF growth 5Y17.08%