ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - NYSE:ARE - US0152711091 - REIT
75.07 USD
+1.2 (+1.62%)
75.58 USD
+0.51 (+0.68%)
Overall ARE gets a fundamental rating of 3 out of 10. We evaluated ARE 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. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had negative earnings in the past year.
ARE had a positive operating cash flow in the past year.
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
ARE has a Return On Assets of -0.06%. This is comparable to the rest of the industry: ARE outperforms 41.86% of its industry peers.
ARE has a Return On Equity (-0.12%) which is comparable to the rest of the industry.
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.
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 3.01%.
| 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.
ARE has a Operating Margin (26.20%) which is comparable to the rest of the industry.
ARE's Operating Margin has been stable in the last couple of years.
ARE has a Gross Margin of 71.25%. This is in the better half of the industry: ARE outperforms 64.34% of its industry peers.
ARE's Gross Margin has been stable in the last couple of years.
| 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
ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARE has about the same amount of shares outstanding.
ARE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARE is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.77 indicates that ARE is somewhat dependend on debt financing.
ARE has a Debt to Equity ratio of 0.77. This is in the better half 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/WACC0.35
WACC5.26%
2.3 Liquidity
A Current Ratio of 0.40 indicates that ARE may have some problems paying 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 82.95% of its industry peers.
A Quick Ratio of 0.40 indicates that ARE may have some problems paying its short term obligations.
ARE's Quick ratio of 0.40 is on the low side compared to the rest of the industry. ARE is outperformed by 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.
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)-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 very negative growth in Earnings Per Share. The EPS will decrease by -15.73% on average per year.
The Revenue is expected to grow by 1.58% on average over the next years.
EPS Next Y-81.2%
EPS Next 2Y-17.09%
EPS Next 3Y-15.73%
EPS Next 5YN/A
Revenue Next Year-3.68%
Revenue Next 2Y-1.84%
Revenue Next 3Y-0.67%
Revenue Next 5Y1.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 60.67, the valuation of ARE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.99. ARE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 60.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a somewhat cheap valuation: ARE is cheaper than 72.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as ARE's earnings are expected to decrease with -15.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.09%
EPS Next 3Y-15.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.09%, ARE is a good candidate for dividend investing.
ARE's Dividend Yield is a higher than the industry average which is at 7.01.
Compared to an average S&P500 Dividend Yield of 2.43, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
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-4249.31%
EPS Next 2Y-17.09%
EPS Next 3Y-15.73%
75.07
+1.2 (+1.62%)
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 Change-0.03%
Ins Owners1.09%
Ins Owner Change-0.69%
Market Cap12.98B
Analysts72.63
Price Target98.77 (31.57%)
Short Float %4.1%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
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)0.3%
PT rev (3m)-0.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.6%
EPS NY rev (1m)-71.97%
EPS NY rev (3m)-83.08%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 60.67 | ||
| P/S | 4.04 | ||
| P/FCF | N/A | ||
| P/OCF | 9.15 | ||
| P/B | 0.76 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)-0.13
EYN/A
EPS(NY)1.24
Fwd EY1.65%
FCF(TTM)-5.15
FCFYN/A
OCF(TTM)8.21
OCFY10.93%
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
WACC5.26%
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)-116.05%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-356%
EPS Next Y-81.2%
EPS Next 2Y-17.09%
EPS Next 3Y-15.73%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
Revenue Next Year-3.68%
Revenue Next 2Y-1.84%
Revenue Next 3Y-0.67%
Revenue Next 5Y1.58%
EBIT growth 1Y-6.46%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year188.76%
EBIT Next 3Y43.43%
EBIT Next 5Y32.89%
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%