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
In the past year ARE has reported negative net income.
In the past year ARE had a positive cash flow from operations.
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 -0.06%, ARE perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
ARE has a Return On Equity (-0.12%) which is in line with its industry peers.
ARE has a worse Return On Invested Capital (1.83%) than 70.77% 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 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.12% | ||
| ROIC | 1.83% |
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.
With a Operating Margin value of 26.20%, ARE perfoms like the industry average, outperforming 58.46% 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.
Looking at the Gross Margin, with a value of 71.25%, ARE is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
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 | 26.2% | ||
| PM (TTM) | N/A | ||
| GM | 71.25% |
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
Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.77 indicates that ARE is somewhat dependend on debt financing.
ARE's Debt to Equity ratio of 0.77 is fine compared to the rest of the industry. ARE outperforms 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC5.54%
2.3 Liquidity
ARE has a Current Ratio of 0.40. 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's Current ratio of 0.40 is on the low side compared to the rest of the industry. ARE is outperformed by 80.77% of its industry peers.
A Quick Ratio of 0.40 indicates that ARE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.40, ARE is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -116.05%.
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.
ARE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
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)-116.05%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-356%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
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.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y11.1%
EPS Next 2Y15.74%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year-2.91%
Revenue Next 2Y-0.55%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
A Price/Forward Earnings ratio of 31.52 indicates a quite expensive valuation of ARE.
ARE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARE is cheaper than 73.08% 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 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31.52 |
4.2 Price Multiples
69.23% 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 | 12.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.74%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.91%, ARE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.55, ARE pays a bit more dividend than its industry peers.
ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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.
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
The earnings of ARE are negative and hence is the payout ratio. ARE will probably not be able to sustain this dividend level.
ARE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-4249.31%
EPS Next 2Y15.74%
EPS Next 3Y0.33%
76.01
-0.42 (-0.55%)
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 Change0.07%
Ins Owners1.1%
Ins Owner Change2.79%
Market Cap13.15B
Analysts72.22
Price Target101.44 (33.46%)
Short Float %4.13%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-4249.31%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-157.96%
Min EPS beat(2)-205.61%
Max EPS beat(2)-110.31%
EPS beat(4)1
Avg EPS beat(4)-112.73%
Min EPS beat(4)-205.61%
Max EPS beat(4)6.08%
EPS beat(8)2
Avg EPS beat(8)-98.07%
EPS beat(12)3
Avg EPS beat(12)-57.99%
EPS beat(16)5
Avg EPS beat(16)-49.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-2.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)7
Avg Revenue beat(12)4.6%
Revenue beat(16)11
Avg Revenue beat(16)11.67%
PT rev (1m)2%
PT rev (3m)-12.7%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-28.16%
EPS NY rev (1m)4.76%
EPS NY rev (3m)-38.96%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31.52 | ||
| P/S | 4.09 | ||
| P/FCF | N/A | ||
| P/OCF | 9.26 | ||
| P/B | 0.77 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)-0.13
EYN/A
EPS(NY)2.41
Fwd EY3.17%
FCF(TTM)-5.15
FCFYN/A
OCF(TTM)8.21
OCFY10.8%
SpS18.59
BVpS99.3
TBVpS97.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.12% | ||
| ROCE | 2.32% | ||
| ROIC | 1.83% | ||
| ROICexc | 1.86% | ||
| ROICexgc | 1.87% | ||
| OM | 26.2% | ||
| PM (TTM) | N/A | ||
| GM | 71.25% | ||
| 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-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 176.03% | ||
| Cap/Sales | 71.84% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 65.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | N/A |
F-Score4
WACC5.54%
ROIC/WACC0.33
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)-116.05%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-356%
EPS Next Y11.1%
EPS Next 2Y15.74%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
Revenue Next Year-2.91%
Revenue Next 2Y-0.55%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
EBIT growth 1Y-6.46%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year177.35%
EBIT Next 3Y42.24%
EBIT Next 5Y33.84%
FCF growth 1Y71.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.3%
OCF growth 3Y14.2%
OCF growth 5Y17.08%