ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
NYSE:ARE - US0152711091 - REIT
80.42 USD
-0.51 (-0.63%)
80.4 USD
-0.02 (-0.02%)
ARE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 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 does not seem to be growing, but still is valued expensively. 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.
Each year in the past 5 years ARE has 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 41.86% of the companies in the same industry.
ARE's Return On Equity of -0.12% is in line compared to the rest of the industry. ARE outperforms 41.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.83%, ARE is doing worse than 68.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARE is in line with the industry average of 3.06%.
| 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
ARE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 26.20%, ARE perfoms like the industry average, outperforming 58.91% of the companies in the same industry.
ARE's Operating Margin has been stable in the last couple of years.
The Gross Margin of ARE (71.25%) is better than 64.34% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
The number of shares outstanding for ARE remains at a similar level compared to 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 0.77. This is a neutral value indicating 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 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.32
WACC5.7%
2.3 Liquidity
A Current Ratio of 0.40 indicates that ARE may have some problems paying its short term obligations.
The Current ratio of ARE (0.40) is worse than 82.95% of its industry peers.
ARE has a Quick 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 has a worse Quick ratio (0.40) than 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -116.05% in the last 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 small growth in Revenue. The Revenue has grown by 3.52% in the last 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)-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
Based on estimates for the next years, ARE will show a decrease in Earnings Per Share. The EPS will decrease by -7.62% on average per year.
Based on estimates for the next years, ARE will show a small growth in Revenue. The Revenue will grow by 1.48% on average per year.
EPS Next Y-32.95%
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
EPS Next 5YN/A
Revenue Next Year-3.61%
Revenue Next 2Y-2.04%
Revenue Next 3Y-1.07%
Revenue Next 5Y1.48%
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
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 42.75, ARE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ARE is valued a bit cheaper than 64.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (22.63), we can say ARE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit cheaper than the industry average as 72.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
A cheap valuation may be justified as ARE's earnings are expected to decrease with -7.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.82%, ARE is a good candidate for dividend investing.
ARE's Dividend Yield is a higher than the industry average which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.34, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
5.2 History
On average, the dividend of ARE grows each year by 6.07%, which is quite nice.
ARE has been paying a dividend for at least 10 years, so it has 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
The earnings of ARE are negative and hence is the payout ratio. ARE will probably not be able to sustain this dividend level.
DP-4249.31%
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
80.42
-0.51 (-0.63%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.86%
Inst Owner Change-2.02%
Ins Owners1.1%
Ins Owner Change2.77%
Market Cap13.91B
Analysts72.94
Price Target98.48 (22.46%)
Short Float %3.86%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
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)-2.92%
PT rev (3m)-9.7%
EPS NQ rev (1m)-10.4%
EPS NQ rev (3m)-35.63%
EPS NY rev (1m)-39.65%
EPS NY rev (3m)-33.61%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.75 | ||
| P/S | 4.33 | ||
| P/FCF | N/A | ||
| P/OCF | 9.8 | ||
| P/B | 0.81 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)-0.13
EYN/A
EPS(NY)1.88
Fwd EY2.34%
FCF(TTM)-5.15
FCFYN/A
OCF(TTM)8.21
OCFY10.21%
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
WACC5.7%
ROIC/WACC0.32
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 Y-32.95%
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
Revenue Next Year-3.61%
Revenue Next 2Y-2.04%
Revenue Next 3Y-1.07%
Revenue Next 5Y1.48%
EBIT growth 1Y-6.46%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year186.77%
EBIT Next 3Y44.32%
EBIT Next 5Y33.42%
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%