ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - NYSE:ARE - US0152711091 - REIT
53.17 USD
-1.3 (-2.39%)
53.99 USD
+0.82 (+1.54%)
ARE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. ARE has a bad profitability rating. Also its financial health evaluation is rather negative. ARE is valued expensive and it does not seem to be growing. Finally ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had negative 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.
ARE 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 -1.13%, ARE is doing worse than 65.35% of the companies in the same industry.
ARE has a Return On Equity of -2.53%. This is in the lower half of the industry: ARE underperforms 65.35% of its industry peers.
ARE has a Return On Invested Capital of 1.71%. This is in the lower half of the industry: ARE underperforms 70.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARE is in line with the industry average of 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.53% | ||
| ROIC | 1.71% |
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
In the last couple of years the Profit Margin of ARE has declined.
ARE has a Operating Margin (24.37%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARE has remained more or less at the same level.
The Gross Margin of ARE (70.81%) is better than 62.99% 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 | 24.37% | ||
| PM (TTM) | N/A | ||
| GM | 70.81% |
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.
ARE has about the same amout of shares outstanding than it did 1 year ago.
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 0.82. This is a neutral value indicating ARE is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.82, ARE is doing good in the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC4.99%
2.3 Liquidity
A Current Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
ARE's Current ratio of 0.41 is on the low side compared to the rest of the industry. ARE is outperformed by 82.68% of its industry peers.
ARE has a Quick Ratio of 0.41. 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 Quick ratio of 0.41. This is amonst the worse of the industry: ARE underperforms 81.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -250.61%.
Measured over the past years, ARE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.24% on average per year.
The Revenue has been growing slightly by 0.18% in the past year.
ARE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.12% yearly.
EPS 1Y (TTM)-250.61%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-243.75%
Revenue 1Y (TTM)0.18%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-3.07%
3.2 Future
The Earnings Per Share is expected to decrease by -19.68% on average over the next years. This is quite bad
Based on estimates for the next years, ARE will show a decrease in Revenue. The Revenue will decrease by -0.27% on average per year.
EPS Next Y-84.18%
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
EPS Next 5YN/A
Revenue Next Year-3.52%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.74%
Revenue Next 5Y-0.27%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ARE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 47.60, the valuation of ARE can be described as expensive.
ARE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (31.86), we can say ARE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 47.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued cheaper than 81.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.51 |
4.3 Compensation for Growth
A cheap valuation may be justified as ARE's earnings are expected to decrease with -19.68% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 9.78%, which is a nice return.
In the last 3 months the price of ARE has falen by -28.35%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ARE's Dividend Yield is rather good when compared to the industry average which is at 6.24. ARE pays more dividend than 91.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.78% |
5.2 History
On average, the dividend of ARE grows each year by 6.07%, which is quite nice.
ARE has paid a dividend for at least 10 years, which is a reliable track record.
ARE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.07%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
ARE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-216.5%
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
53.17
-1.3 (-2.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.62%
Inst Owner Change0.39%
Ins Owners1.09%
Ins Owner Change-0.64%
Market Cap9.20B
Revenue(TTM)3.19B
Net Income(TTM)-421069000
Analysts71.58
Price Target97.84 (84.01%)
Short Float %2.76%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.78% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-216.5%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-289.99%
Min EPS beat(2)-374.36%
Max EPS beat(2)-205.61%
EPS beat(4)0
Avg EPS beat(4)-207.84%
Min EPS beat(4)-374.36%
Max EPS beat(4)-110.31%
EPS beat(8)2
Avg EPS beat(8)-133.77%
EPS beat(12)2
Avg EPS beat(12)-106.58%
EPS beat(16)4
Avg EPS beat(16)-73.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)-0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)1.53%
Revenue beat(16)10
Avg Revenue beat(16)10.24%
PT rev (1m)-0.64%
PT rev (3m)-3.55%
EPS NQ rev (1m)-5.59%
EPS NQ rev (3m)-20.32%
EPS NY rev (1m)-15.82%
EPS NY rev (3m)-85.76%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 47.6 | ||
| P/S | 2.88 | ||
| P/FCF | N/A | ||
| P/OCF | 6.68 | ||
| P/B | 0.55 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 10.51 |
EPS(TTM)-2.47
EYN/A
EPS(NY)1.12
Fwd EY2.1%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.95
OCFY14.96%
SpS18.43
BVpS96.2
TBVpS94.84
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.53% | ||
| ROCE | 2.16% | ||
| ROIC | 1.71% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 1.74% | ||
| OM | 24.37% | ||
| PM (TTM) | N/A | ||
| GM | 70.81% | ||
| 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%
ROICexgc growth 3Y14.19%
ROICexgc 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-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.37 | ||
| Cap/Depr | 152.85% | ||
| Cap/Sales | 65.14% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 64.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | N/A |
F-Score4
WACC4.99%
ROIC/WACC0.34
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)-250.61%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-243.75%
EPS Next Y-84.18%
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
EPS Next 5YN/A
Revenue 1Y (TTM)0.18%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-3.07%
Revenue Next Year-3.52%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.74%
Revenue Next 5Y-0.27%
EBIT growth 1Y-17.17%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year188.76%
EBIT Next 3Y43.43%
EBIT Next 5Y30.13%
FCF growth 1Y73.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.17%
OCF growth 3Y14.2%
OCF growth 5Y17.08%
ALEXANDRIA REAL ESTATE EQUIT / ARE FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 2 / 10 to ARE.
Can you provide the valuation status for ALEXANDRIA REAL ESTATE EQUIT?
ChartMill assigns a valuation rating of 1 / 10 to ALEXANDRIA REAL ESTATE EQUIT (ARE). This can be considered as Overvalued.
What is the profitability of ARE stock?
ALEXANDRIA REAL ESTATE EQUIT (ARE) has a profitability rating of 3 / 10.
Can you provide the financial health for ARE stock?
The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.