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 129 industry peers in the Diversified REITs industry. ARE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, ARE is valued expensive at the moment. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARE was profitable.
In the past year ARE had a positive cash flow from operations.
ARE had positive earnings in each of the past 5 years.
In the past 5 years ARE always reported a positive cash flow from operatings.
1.2 Ratios
ARE has a Return On Assets (0.35%) which is in line with its industry peers.
ARE has a Return On Equity (0.75%) which is comparable to the rest of the industry.
ARE has a worse Return On Invested Capital (1.99%) than 66.67% 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%.
The last Return On Invested Capital (1.99%) for ARE is above the 3 year average (1.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.75% | ||
| ROIC | 1.99% |
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
With a Profit Margin value of 4.07%, ARE perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
ARE's Profit Margin has declined in the last couple of years.
ARE has a better Operating Margin (27.83%) than 60.47% of its industry peers.
ARE's Operating Margin has been stable in the last couple of years.
ARE's Gross Margin of 71.54% is fine compared to the rest of the industry. ARE outperforms 65.12% 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 | 27.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 71.54% |
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.
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 0.72 indicates that ARE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, ARE is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC5.65%
2.3 Liquidity
ARE has a Current Ratio of 0.24. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ARE (0.24) is worse than 87.60% of its industry peers.
ARE has a Quick Ratio of 0.24. 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 0.24. This is amonst the worse of the industry: ARE underperforms 86.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -28.97% in the last year.
The earnings per share for ARE have been decreasing by -10.24% on average. This is quite bad
The Revenue has been growing slightly by 5.93% 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)-28.97%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-107.22%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-1.64%
3.2 Future
Based on estimates for the next years, ARE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.04% on average per year.
Based on estimates for the next years, ARE will show a small growth in Revenue. The Revenue will grow by 2.20% on average per year.
EPS Next Y1%
EPS Next 2Y21.79%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue Next Year-2.33%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 95.60, which means the current valuation is very expensive for ARE.
Based on the Price/Earnings ratio, ARE is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.55, ARE is valued quite expensively.
With a Price/Forward Earnings ratio of 27.21, ARE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 80.62% of the companies listed in the same industry.
ARE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.6 | ||
| Fwd PE | 27.21 |
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 71.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)95.6
PEG (5Y)N/A
EPS Next 2Y21.79%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 7.59%, which is a nice return.
The stock price of ARE dropped by -26.19% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.75, 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 | 7.59% |
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
691.78% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
ARE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP691.78%
EPS Next 2Y21.79%
EPS Next 3Y11.04%
NYSE:ARE (6/12/2025, 11:13:22 AM)
72.655
-0.53 (-0.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change-0.66%
Ins Owners1.06%
Ins Owner Change8.33%
Market Cap12.57B
Analysts72.22
Price Target107.36 (47.77%)
Short Float %3.61%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP691.78%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-125.69%
Min EPS beat(2)-141.07%
Max EPS beat(2)-110.31%
EPS beat(4)1
Avg EPS beat(4)-78.61%
Min EPS beat(4)-141.07%
Max EPS beat(4)6.08%
EPS beat(8)2
Avg EPS beat(8)-74.93%
EPS beat(12)4
Avg EPS beat(12)-28.32%
EPS beat(16)6
Avg EPS beat(16)-17.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)-2.09%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)0.18%
Revenue beat(8)4
Avg Revenue beat(8)-0.7%
Revenue beat(12)8
Avg Revenue beat(12)8.1%
Revenue beat(16)12
Avg Revenue beat(16)13.26%
PT rev (1m)-1.56%
PT rev (3m)-10.99%
EPS NQ rev (1m)-7.33%
EPS NQ rev (3m)-32.2%
EPS NY rev (1m)-44.51%
EPS NY rev (3m)-57.4%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.6 | ||
| Fwd PE | 27.21 | ||
| P/S | 3.9 | ||
| P/FCF | N/A | ||
| P/OCF | 9.17 | ||
| P/B | 0.72 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)0.76
EY1.05%
EPS(NY)2.67
Fwd EY3.67%
FCF(TTM)-6.12
FCFYN/A
OCF(TTM)7.93
OCFY10.91%
SpS18.63
BVpS100.96
TBVpS99.34
PEG (NY)95.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.75% | ||
| ROCE | 2.52% | ||
| ROIC | 1.99% | ||
| ROICexc | 2.02% | ||
| ROICexgc | 2.03% | ||
| OM | 27.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 71.54% | ||
| 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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 193.33% | ||
| Cap/Sales | 75.39% | ||
| Interest Coverage | 5.64 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | N/A |
F-Score5
WACC5.65%
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)-28.97%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-107.22%
EPS Next Y1%
EPS Next 2Y21.79%
EPS Next 3Y11.04%
EPS Next 5YN/A
Revenue 1Y (TTM)5.93%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-1.64%
Revenue Next Year-2.33%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
EBIT growth 1Y4.51%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year177.35%
EBIT Next 3Y42.24%
EBIT Next 5Y33.84%
FCF growth 1Y67.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.66%
OCF growth 3Y14.2%
OCF growth 5Y17.08%