AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - NYSE:AVB - US0534841012 - REIT
184.68 USD
+0.15 (+0.08%)
184.68 USD
0 (0%)
Taking everything into account, AVB scores 5 out of 10 in our fundamental rating. AVB was compared to 20 industry peers in the Residential REITs industry. AVB has an excellent profitability rating, but there are concerns on its financial health. AVB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AVB had positive earnings in the past year.
AVB had a positive operating cash flow in the past year.
Each year in the past 5 years AVB has been profitable.
In the past 5 years AVB always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.30%, AVB belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.69%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
AVB's Return On Invested Capital of 3.49% is amongst the best of the industry. AVB outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVB is in line with the industry average of 2.59%.
The 3 year average ROIC (3.44%) for AVB is below the current ROIC(3.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.69% | ||
| ROIC | 3.49% |
ROA(3y)5.06%
ROA(5y)4.9%
ROE(3y)9%
ROE(5y)8.77%
ROIC(3y)3.44%
ROIC(5y)3.18%
1.3 Margins
With an excellent Profit Margin value of 38.84%, AVB belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AVB has grown nicely.
AVB's Operating Margin of 30.87% is amongst the best of the industry. AVB outperforms 95.00% of its industry peers.
AVB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 63.00%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
AVB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.87% | ||
| PM (TTM) | 38.84% | ||
| GM | 63% |
OM growth 3Y5.59%
OM growth 5Y-2.68%
PM growth 3Y-5.32%
PM growth 5Y1.91%
GM growth 3Y0.2%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVB is destroying value.
AVB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AVB has been increased compared to 5 years ago.
AVB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that AVB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.86, AVB belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
AVB has a Debt/Equity ratio of 0.73. This is a neutral value indicating AVB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, AVB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.49
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.10 indicates that AVB may have some problems paying its short term obligations.
AVB has a worse Current ratio (0.10) than 75.00% of its industry peers.
A Quick Ratio of 0.10 indicates that AVB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.10, AVB is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.56% over the past year.
Measured over the past 5 years, AVB shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
Measured over the past years, AVB shows a small growth in Revenue. The Revenue has been growing by 4.62% on average per year.
EPS 1Y (TTM)37.56%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%5.62%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.75%
3.2 Future
AVB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.50% yearly.
Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
EPS Next Y-17.68%
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
EPS Next 5Y-4.5%
Revenue Next Year4.71%
Revenue Next 2Y4.85%
Revenue Next 3Y5.07%
Revenue Next 5Y5.82%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AVB is valuated rather expensively with a Price/Earnings ratio of 22.72.
95.00% of the companies in the same industry are more expensive than AVB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.35, AVB is valued at the same level.
With a Price/Forward Earnings ratio of 33.03, AVB can be considered very expensive at the moment.
95.00% of the companies in the same industry are more expensive than AVB, based on the Price/Forward Earnings ratio.
AVB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 33.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVB is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.4 |
4.3 Compensation for Growth
AVB has an outstanding profitability rating, which may justify a higher PE ratio.
AVB's earnings are expected to decrease with -7.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.71
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
5. Dividend
5.1 Amount
AVB has a Yearly Dividend Yield of 3.77%.
Compared to an average industry Dividend Yield of 6.43, AVB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, AVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of AVB has a limited annual growth rate of 2.45%.
AVB has been paying a dividend for at least 10 years, so it has a reliable track record.
AVB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.45%
Div Incr Years2
Div Non Decr Years26
5.3 Sustainability
84.31% of the earnings are spent on dividend by AVB. This is not a sustainable payout ratio.
The Dividend Rate of AVB has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP84.31%
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
184.68
+0.15 (+0.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.39%
Inst Owner Change-0.04%
Ins Owners0.37%
Ins Owner Change-0.22%
Market Cap26.29B
Analysts71.11
Price Target221.34 (19.85%)
Short Float %3.06%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.31%
Div Incr Years2
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.39%
Min EPS beat(2)23.58%
Max EPS beat(2)47.2%
EPS beat(4)4
Avg EPS beat(4)47.51%
Min EPS beat(4)23.58%
Max EPS beat(4)78.32%
EPS beat(8)7
Avg EPS beat(8)31.65%
EPS beat(12)9
Avg EPS beat(12)34.92%
EPS beat(16)11
Avg EPS beat(16)33.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)-0.85%
Revenue beat(8)0
Avg Revenue beat(8)-1.84%
Revenue beat(12)0
Avg Revenue beat(12)-2.72%
Revenue beat(16)2
Avg Revenue beat(16)-1.97%
PT rev (1m)-0.27%
PT rev (3m)-5.85%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)4.87%
EPS NY rev (3m)5.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 33.03 | ||
| P/S | 8.82 | ||
| P/FCF | N/A | ||
| P/OCF | 16.35 | ||
| P/B | 2.2 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 19.4 |
EPS(TTM)8.13
EY4.4%
EPS(NY)5.59
Fwd EY3.03%
FCF(TTM)-3.23
FCFYN/A
OCF(TTM)11.3
OCFY6.12%
SpS20.94
BVpS83.91
TBVpS83.91
PEG (NY)N/A
PEG (5Y)3.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.69% | ||
| ROCE | 4.41% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.5% | ||
| OM | 30.87% | ||
| PM (TTM) | 38.84% | ||
| GM | 63% | ||
| FCFM | N/A |
ROA(3y)5.06%
ROA(5y)4.9%
ROE(3y)9%
ROE(5y)8.77%
ROIC(3y)3.44%
ROIC(5y)3.18%
ROICexc(3y)3.5%
ROICexc(5y)3.24%
ROICexgc(3y)3.51%
ROICexgc(5y)3.24%
ROCE(3y)4.35%
ROCE(5y)4.03%
ROICexcg growth 3Y11.75%
ROICexcg growth 5Y0.03%
ROICexc growth 3Y11.82%
ROICexc growth 5Y0.06%
OM growth 3Y5.59%
OM growth 5Y-2.68%
PM growth 3Y-5.32%
PM growth 5Y1.91%
GM growth 3Y0.2%
GM growth 5Y-1.16%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.83 | ||
| Cap/Depr | 235.87% | ||
| Cap/Sales | 69.41% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 89.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.86 |
F-Score6
WACC7.14%
ROIC/WACC0.49
Cap/Depr(3y)183.94%
Cap/Depr(5y)179.75%
Cap/Sales(3y)55.28%
Cap/Sales(5y)55.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.56%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%5.62%
EPS Next Y-17.68%
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
EPS Next 5Y-4.5%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.75%
Revenue Next Year4.71%
Revenue Next 2Y4.85%
Revenue Next 3Y5.07%
Revenue Next 5Y5.82%
EBIT growth 1Y0.93%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year80.15%
EBIT Next 3Y26.5%
EBIT Next 5Y17.18%
FCF growth 1Y-7774.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.52%
OCF growth 3Y10.15%
OCF growth 5Y4%