ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - NYSE:ARE - US0152711091 - REIT
85.89 USD
-0.3 (-0.35%)
86 USD
+0.11 (+0.13%)
We assign a fundamental rating of 3 out of 10 to ARE. ARE was compared to 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 valued expensive and it does not seem to be growing.
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.
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
ARE has a Return On Assets of -0.06%. This is comparable to the rest of the industry: ARE outperforms 42.31% of its industry peers.
ARE's Return On Equity of -0.12% is in line compared to the rest of the industry. ARE outperforms 42.31% of its industry peers.
ARE has a Return On Invested Capital of 1.83%. This is in the lower half of the industry: ARE underperforms 68.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARE is in line with the industry average of 3.05%.
| 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.
Looking at the Operating Margin, with a value of 26.20%, ARE is in line with its industry, 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.
With a decent Gross Margin value of 71.25%, ARE is doing good in 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
ARE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ARE has been increased compared to 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.
The Debt to Equity ratio of ARE (0.77) is better than 73.08% 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.
ARE has a worse Current ratio (0.40) than 83.08% of its industry peers.
A Quick Ratio of 0.40 indicates that ARE may have some problems paying its short term obligations.
The Quick ratio of ARE (0.40) is worse than 82.31% 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.
ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
The Revenue has been growing slightly by 3.52% 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)-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 decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.62% yearly.
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-3.9%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.91%
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.
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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 45.66, which means the current valuation is very expensive for ARE.
ARE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARE is cheaper than 60.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. ARE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 45.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit cheaper than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.82 |
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 6.04%, ARE is a good candidate for dividend investing.
ARE's Dividend Yield is comparable with the industry average which is at 6.58.
ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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
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%
85.89
-0.3 (-0.35%)
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 Change2.11%
Market Cap14.86B
Analysts72.94
Price Target98.48 (14.66%)
Short Float %4.33%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
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)-2.66%
PT rev (3m)-0.98%
EPS NQ rev (1m)-5.8%
EPS NQ rev (3m)-15.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.77%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 45.66 | ||
| P/S | 4.62 | ||
| P/FCF | N/A | ||
| P/OCF | 10.46 | ||
| P/B | 0.86 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)-0.13
EYN/A
EPS(NY)1.88
Fwd EY2.19%
FCF(TTM)-5.15
FCFYN/A
OCF(TTM)8.21
OCFY9.56%
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-3.9%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.91%
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%