ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
48.6 USD
-0.16 (-0.33%)
48.8499 USD
+0.25 (+0.51%)
Overall ARE gets a fundamental rating of 2 out of 10. We evaluated ARE against 128 industry peers in the Diversified REITs industry. Both the profitability and financial health of ARE have multiple concerns. 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.
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's Return On Assets of -1.13% is on the low side compared to the rest of the industry. ARE is outperformed by 68.75% of its industry peers.
Looking at the Return On Equity, with a value of -2.53%, ARE is doing worse than 67.97% of the companies in the same industry.
ARE has a worse Return On Invested Capital (1.71%) than 72.66% 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 | -1.13% | ||
| ROE | -2.53% | ||
| ROIC | 1.71% |
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.
With a Operating Margin value of 24.37%, ARE perfoms like the industry average, outperforming 53.91% of the companies in the same industry.
ARE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 70.81%, ARE is in the better half of the industry, outperforming 63.28% of the companies in the same industry.
ARE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.37% | ||
| PM (TTM) | N/A | ||
| GM | 70.81% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
The number of shares outstanding for ARE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ARE has more shares outstanding
The debt/assets ratio for ARE is higher compared to a year ago.
2.2 Solvency
ARE has a Debt/Equity ratio of 0.82. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE's Debt to Equity ratio of 0.82 is fine compared to the rest of the industry. ARE outperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC4.9%
2.3 Liquidity
A Current Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
ARE has a Current ratio of 0.41. This is amonst the worse of the industry: ARE underperforms 83.59% of its industry peers.
A Quick Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
ARE has a Quick ratio of 0.41. This is amonst the worse of the industry: ARE underperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -250.61%.
Measured over the past years, ARE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.24% on average per year.
The Revenue has been growing slightly by 0.18% in the past year.
The Revenue has been growing by 16.12% on average over the past years. This is quite good.
EPS 1Y (TTM)-250.61%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-243.75%
Revenue 1Y (TTM)0.18%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-3.07%
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 -53.14% on average per year.
ARE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.27% yearly.
EPS Next Y-110.94%
EPS Next 2Y-31.86%
EPS Next 3Y-53.14%
EPS Next 5YN/A
Revenue Next Year-3.36%
Revenue Next 2Y-3.7%
Revenue Next 3Y-2.29%
Revenue Next 5Y-0.27%
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 decreasing.
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.
The Price/Forward Earnings ratio is 58.15, which means the current valuation is very expensive for ARE.
ARE's Price/Forward Earnings is on the same level as the industry average.
ARE is valuated expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 58.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
ARE's earnings are expected to decrease with -53.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-31.86%
EPS Next 3Y-53.14%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 5.91%, which is a nice return.
The stock price of ARE dropped by -42.04% 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.
ARE's Dividend Yield is comparable with the industry average which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.00, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
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-216.5%
EPS Next 2Y-31.86%
EPS Next 3Y-53.14%
48.6
-0.16 (-0.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change2.82%
Ins Owners1.05%
Ins Owner Change-3.81%
Market Cap8.40B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target65.75 (35.29%)
Short Float %3.66%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-216.5%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-289.99%
Min EPS beat(2)-374.36%
Max EPS beat(2)-205.61%
EPS beat(4)0
Avg EPS beat(4)-207.84%
Min EPS beat(4)-374.36%
Max EPS beat(4)-110.31%
EPS beat(8)2
Avg EPS beat(8)-133.77%
EPS beat(12)2
Avg EPS beat(12)-106.58%
EPS beat(16)4
Avg EPS beat(16)-73.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)-0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)1.53%
Revenue beat(16)10
Avg Revenue beat(16)10.24%
PT rev (1m)-27.35%
PT rev (3m)-27.81%
EPS NQ rev (1m)2.85%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)-169.15%
EPS NY rev (3m)-116.32%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 58.15 | ||
| P/S | 2.63 | ||
| P/FCF | N/A | ||
| P/OCF | 6.1 | ||
| P/B | 0.5 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.84
Fwd EY1.72%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY16.38%
SpS18.44
BVpS96.28
TBVpS94.91
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.53% | ||
| ROCE | 2.16% | ||
| ROIC | 1.71% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 1.74% | ||
| OM | 24.37% | ||
| PM (TTM) | N/A | ||
| GM | 70.81% | ||
| 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%
ROICexgc growth 3Y14.19%
ROICexgc 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 | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.37 | ||
| Cap/Depr | 152.85% | ||
| Cap/Sales | 65.14% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 64.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | N/A |
F-Score4
WACC4.9%
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)-250.61%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-243.75%
EPS Next Y-110.94%
EPS Next 2Y-31.86%
EPS Next 3Y-53.14%
EPS Next 5YN/A
Revenue 1Y (TTM)0.18%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-3.07%
Revenue Next Year-3.36%
Revenue Next 2Y-3.7%
Revenue Next 3Y-2.29%
Revenue Next 5Y-0.27%
EBIT growth 1Y-17.17%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year186.2%
EBIT Next 3Y35.4%
EBIT Next 5Y30.13%
FCF growth 1Y73.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.17%
OCF growth 3Y14.2%
OCF growth 5Y17.08%
ALEXANDRIA REAL ESTATE EQUIT / ARE FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 2 / 10 to ARE.
Can you provide the valuation status for ALEXANDRIA REAL ESTATE EQUIT?
ChartMill assigns a valuation rating of 1 / 10 to ALEXANDRIA REAL ESTATE EQUIT (ARE). This can be considered as Overvalued.
What is the profitability of ARE stock?
ALEXANDRIA REAL ESTATE EQUIT (ARE) has a profitability rating of 3 / 10.
Can you provide the financial health for ARE stock?
The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.