AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
NYSE:AVB - New York Stock Exchange, Inc. - US0534841012 - REIT - Currency: USD
Overall AVB gets a fundamental rating of 5 out of 10. We evaluated AVB against 20 industry peers in the Residential REITs industry. AVB scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, AVB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AVB had positive earnings in the past year.
In the past year AVB had a positive cash flow from operations.
AVB had positive earnings in each of the past 5 years.
Each year in the past 5 years AVB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.39%, AVB belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
AVB has a Return On Equity of 9.59%. This is amongst the best in the industry. AVB outperforms 90.00% of its industry peers.
AVB has a better Return On Invested Capital (3.63%) than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVB is in line with the industry average of 2.62%.
The 3 year average ROIC (3.44%) for AVB is below the current ROIC(3.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 9.59% | ||
| ROIC | 3.63% |
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 38.79%, AVB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AVB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 31.58%, AVB belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVB has declined.
AVB has a better Gross Margin (63.13%) than 80.00% of its industry peers.
AVB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.58% | ||
| PM (TTM) | 38.79% | ||
| GM | 63.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for AVB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 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 2.17, 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 0.70. This is a neutral value indicating AVB is somewhat dependend on debt financing.
AVB's Debt to Equity ratio of 0.70 is fine compared to the rest of the industry. AVB outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC0.48
WACC7.6%
2.3 Liquidity
AVB has a Current Ratio of 0.05. This is a bad value and indicates that AVB is not financially healthy enough and could expect problems in meeting its short term obligations.
AVB has a Current ratio of 0.05. This is amonst the worse of the industry: AVB underperforms 85.00% of its industry peers.
AVB has a Quick Ratio of 0.05. This is a bad value and indicates that AVB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AVB (0.05) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.43% over the past year.
AVB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
The Revenue has been growing slightly by 4.62% on average over the past years.
EPS 1Y (TTM)48.43%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%36.07%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.65%
3.2 Future
The Earnings Per Share is expected to decrease by -2.59% on average over the next years.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y-23.41%
EPS Next 2Y-12.28%
EPS Next 3Y-6.06%
EPS Next 5Y-2.59%
Revenue Next Year4.88%
Revenue Next 2Y5.05%
Revenue Next 3Y5.26%
Revenue Next 5Y6.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.96, AVB can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AVB is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, AVB is valued at the same level.
Based on the Price/Forward Earnings ratio of 35.69, the valuation of AVB can be described as expensive.
95.00% of the companies in the same industry are more expensive than AVB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AVB to the average of the S&P500 Index (22.40), we can say AVB is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 35.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVB indicates a slightly more expensive valuation: AVB is more expensive than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.13 |
4.3 Compensation for Growth
The excellent profitability rating of AVB may justify a higher PE ratio.
AVB's earnings are expected to decrease with -6.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.24
EPS Next 2Y-12.28%
EPS Next 3Y-6.06%
5. Dividend
5.1 Amount
AVB has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 4.52, AVB is paying slightly less dividend.
AVB's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of AVB has a limited annual growth rate of 2.45%.
AVB has paid a dividend for at least 10 years, which is 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
84.74% 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.
DP84.74%
EPS Next 2Y-12.28%
EPS Next 3Y-6.06%
NYSE:AVB (6/12/2025, 11:01:54 AM)
208.46
+1.92 (+0.93%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.5%
Inst Owner Change0.38%
Ins Owners0.33%
Ins Owner Change7.9%
Market Cap29.68B
Analysts72.14
Price Target236.21 (13.31%)
Short Float %2.07%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.74%
Div Incr Years2
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.26%
Min EPS beat(2)23.58%
Max EPS beat(2)40.95%
EPS beat(4)4
Avg EPS beat(4)45.74%
Min EPS beat(4)23.58%
Max EPS beat(4)78.32%
EPS beat(8)6
Avg EPS beat(8)23.86%
EPS beat(12)9
Avg EPS beat(12)31.52%
EPS beat(16)11
Avg EPS beat(16)30.51%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)-0.13%
Revenue beat(8)0
Avg Revenue beat(8)-2.76%
Revenue beat(12)1
Avg Revenue beat(12)-2.53%
Revenue beat(16)3
Avg Revenue beat(16)-1.82%
PT rev (1m)-0.25%
PT rev (3m)-2.84%
EPS NQ rev (1m)-8.62%
EPS NQ rev (3m)-12.85%
EPS NY rev (1m)0.59%
EPS NY rev (3m)5.51%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 35.69 | ||
| P/S | 10.07 | ||
| P/FCF | N/A | ||
| P/OCF | 18.42 | ||
| P/B | 2.49 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 21.13 |
EPS(TTM)8.03
EY3.85%
EPS(NY)5.84
Fwd EY2.8%
FCF(TTM)-1.61
FCFYN/A
OCF(TTM)11.31
OCFY5.43%
SpS20.7
BVpS83.7
TBVpS83.7
PEG (NY)N/A
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 9.59% | ||
| ROCE | 4.6% | ||
| ROIC | 3.63% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.64% | ||
| OM | 31.58% | ||
| PM (TTM) | 38.79% | ||
| GM | 63.13% | ||
| 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-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 215.91% | ||
| Cap/Sales | 62.46% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 90.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 2.17 |
F-Score5
WACC7.6%
ROIC/WACC0.48
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)48.43%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%36.07%
EPS Next Y-23.41%
EPS Next 2Y-12.28%
EPS Next 3Y-6.06%
EPS Next 5Y-2.59%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.65%
Revenue Next Year4.88%
Revenue Next 2Y5.05%
Revenue Next 3Y5.26%
Revenue Next 5Y6.76%
EBIT growth 1Y3.31%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year80.43%
EBIT Next 3Y26.74%
EBIT Next 5Y17.18%
FCF growth 1Y-265.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.26%
OCF growth 3Y10.15%
OCF growth 5Y4%