ALEXANDRIA REAL ESTATE EQUIT (ARE)
US0152711091 - REIT
We assign a fundamental rating of 3 out of 10 to ARE. ARE was compared to 126 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.
1. Profitability
1.1 Basic Checks
ARE had positive 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.
Each year in the past 5 years ARE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.25%, ARE perfoms like the industry average, outperforming 43.09% of the companies in the same industry.
ARE has a Return On Equity (0.50%) which is comparable to the rest of the industry.
ARE has a worse Return On Invested Capital (1.84%) than 69.92% 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 2.95%.
The 3 year average ROIC (1.64%) for ARE is below the current ROIC(1.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 0.5% | ||
| ROIC | 1.84% |
ROA(3y)1.19%
ROA(5y)1.76%
ROE(3y)2.23%
ROE(5y)3.43%
ROIC(3y)1.64%
ROIC(5y)1.75%
1.3 Margins
ARE has a Profit Margin (3.12%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ARE has declined.
ARE has a better Operating Margin (27.45%) than 63.41% of its industry peers.
In the last couple of years the Operating Margin of ARE has remained more or less at the same level.
ARE has a better Gross Margin (71.03%) than 61.79% 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 | 27.45% | ||
| PM (TTM) | 3.12% | ||
| GM | 71.03% |
OM growth 3Y-0.4%
OM growth 5Y-0.74%
PM growth 3Y-57.41%
PM growth 5Y-35.27%
GM growth 3Y-0.39%
GM growth 5Y-0.07%
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.
The number of shares outstanding for ARE has been increased compared to 1 year ago.
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 0.61 indicates that ARE is somewhat dependend on debt financing.
ARE has a better Debt to Equity ratio (0.61) than 82.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.29
WACC6.42%
2.3 Liquidity
ARE has a Current Ratio of 0.36. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.36, ARE is not doing good in the industry: 91.06% of the companies in the same industry are doing better.
ARE has a Quick Ratio of 0.36. 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 Quick ratio of 0.36 is on the low side compared to the rest of the industry. ARE is outperformed by 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -82.75% 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 -31.50% yearly.
Looking at the last year, ARE shows a quite strong growth in Revenue. The Revenue has grown by 11.12% in the last year.
The Revenue has been growing by 17.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-82.75%
EPS 3Y-56.25%
EPS 5Y-31.5%
EPS growth Q2Q-274.19%
Revenue 1Y (TTM)11.12%
Revenue growth 3Y16.3%
Revenue growth 5Y17.45%
Revenue growth Q2Q14.05%
3.2 Future
ARE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 92.27% yearly.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y519.09%
EPS Next 2Y155.03%
EPS Next 3Y92.27%
EPS Next 5YN/A
Revenue Next Year8.4%
Revenue Next 2Y7.2%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 217.22, the valuation of ARE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 62.60% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARE to the average of the S&P500 Index (25.20), we can say ARE is valued expensively.
ARE is valuated quite expensively with a Price/Forward Earnings ratio of 35.09.
ARE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARE is cheaper than 70.73% of the companies in the same industry.
ARE is valuated expensively when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 217.22 | ||
| Fwd PE | 35.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 67.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 92.27% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y155.03%
EPS Next 3Y92.27%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 4.25%, which is a nice return.
Compared to an average industry Dividend Yield of 6.12, ARE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
5.2 History
On average, the dividend of ARE grows each year by 6.21%, which is quite nice.
ARE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ARE decreased in the last 3 years.
Dividend Growth(5Y)6.21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ARE pays out 915.48% of its income as dividend. This is not a sustainable payout ratio.
ARE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP915.48%
EPS Next 2Y155.03%
EPS Next 3Y92.27%
ALEXANDRIA REAL ESTATE EQUIT
NYSE:ARE (4/25/2024, 7:04:00 PM)
After market: 116.59 -0.71 (-0.61%)117.3
-2.35 (-1.96%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 217.22 | ||
| Fwd PE | 35.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 0.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.45% | ||
| PM (TTM) | 3.12% | ||
| GM | 71.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-82.75%
EPS 3Y-56.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y519.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.12%
Revenue growth 3Y16.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y