AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AVB • US0534841012

173.83 USD
+4.13 (+2.43%)
At close: Feb 6, 2026
173.83 USD
0 (0%)
After Hours: 2/6/2026, 8:18:39 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

AVB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While AVB belongs to the best of the industry regarding profitability, there are concerns on its financial health. AVB has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

7

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.
  • AVB had positive earnings in 4 of the past 5 years.
  • AVB had a positive operating cash flow in 4 of the past 5 years.
AVB Yearly Net Income VS EBIT VS OCF VS FCFAVB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

1.2 Ratios

  • AVB has a better Return On Assets (5.31%) than 75.00% of its industry peers.
  • AVB has a Return On Equity of 9.77%. This is in the better half of the industry: AVB outperforms 75.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.46%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • 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(3.46%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.31%
ROE 9.77%
ROIC 3.46%
ROA(3y)5.06%
ROA(5y)4.9%
ROE(3y)9%
ROE(5y)8.77%
ROIC(3y)3.44%
ROIC(5y)3.18%
AVB Yearly ROA, ROE, ROICAVB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • AVB has a better Profit Margin (38.71%) than 85.00% of its industry peers.
  • AVB's Profit Margin has improved in the last couple of years.
  • AVB has a Operating Margin of 30.35%. This is amongst the best in the industry. AVB outperforms 90.00% of its industry peers.
  • In the last couple of years the Operating Margin of AVB has declined.
  • AVB has a Gross Margin of 62.81%. This is in the better half of the industry: AVB outperforms 80.00% of its industry peers.
  • AVB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 30.35%
PM (TTM) 38.71%
GM 62.81%
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%
AVB Yearly Profit, Operating, Gross MarginsAVB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
AVB Yearly Total Debt VS Total AssetsAVB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

  • AVB has an Altman-Z score of 1.71. This is a bad value and indicates that AVB is not financially healthy and even has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 1.71, AVB belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.73 indicates that 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 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.71
ROIC/WACC0.48
WACC7.19%
AVB Yearly LT Debt VS Equity VS FCFAVB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • AVB has a Current Ratio of 0.12. 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 Current ratio of AVB (0.12) is worse than 70.00% of its industry peers.
  • A Quick Ratio of 0.12 indicates that AVB may have some problems paying its short term obligations.
  • AVB has a worse Quick ratio (0.12) than 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.12
Quick Ratio 0.12
AVB Yearly Current Assets VS Current LiabilitesAVB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. Growth

3.1 Past

  • AVB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.50%, which is quite good.
  • Measured over the past years, AVB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.02% on average per year.
EPS 1Y (TTM)19.5%
EPS 3Y8.71%
EPS 5Y9.02%
EPS Q2Q%43.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.93%

3.2 Future

  • AVB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.96% yearly.
  • The Revenue is expected to grow by 5.64% on average over the next years.
EPS Next Y-41.56%
EPS Next 2Y-21.88%
EPS Next 3Y-14.06%
EPS Next 5Y-6.96%
Revenue Next Year3.86%
Revenue Next 2Y4.65%
Revenue Next 3Y6.21%
Revenue Next 5Y5.64%

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.
AVB Yearly Revenue VS EstimatesAVB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
AVB Yearly EPS VS EstimatesAVB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.17, which indicates a rather expensive current valuation of AVB.
  • Based on the Price/Earnings ratio, AVB is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, AVB is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 32.79, AVB can be considered very expensive at the moment.
  • AVB's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVB is cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, AVB is valued at the same level.
Industry RankSector Rank
PE 19.17
Fwd PE 32.79
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AVB is valued a bit more expensive than 60.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.04
AVB Per share dataAVB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The decent profitability rating of AVB may justify a higher PE ratio.
  • AVB's earnings are expected to decrease with -14.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.13
EPS Next 2Y-21.88%
EPS Next 3Y-14.06%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • AVB has a Yearly Dividend Yield of 4.20%, which is a nice return.
  • AVB's Dividend Yield is slightly below the industry average, which is at 40.99.
  • AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 4.2%

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
AVB Yearly Dividends per shareAVB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

  • 84.41% of the earnings are spent on dividend by AVB. This is not a sustainable payout ratio.
  • AVB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP84.41%
EPS Next 2Y-21.88%
EPS Next 3Y-14.06%
AVB Yearly Income VS Free CF VS DividendAVB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B
AVB Dividend Payout.AVB Dividend Payout, showing the Payout Ratio.AVB Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

AVALONBAY COMMUNITIES INC

NYSE:AVB (2/6/2026, 8:18:39 PM)

After market: 173.83 0 (0%)

173.83

+4.13 (+2.43%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners96.8%
Inst Owner Change-6.03%
Ins Owners0.37%
Ins Owner Change0.12%
Market Cap24.61B
Revenue(TTM)N/A
Net Income(TTM)1.17B
Analysts71.11
Price Target201.76 (16.07%)
Short Float %4.05%
Short Ratio5.18
Dividend
Industry RankSector Rank
Dividend Yield 4.2%
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.41%
Div Incr Years2
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.62%
Min EPS beat(2)47.2%
Max EPS beat(2)84.04%
EPS beat(4)4
Avg EPS beat(4)48.94%
Min EPS beat(4)23.58%
Max EPS beat(4)84.04%
EPS beat(8)8
Avg EPS beat(8)42.89%
EPS beat(12)9
Avg EPS beat(12)27.14%
EPS beat(16)12
Avg EPS beat(16)40.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)-0.86%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)0
Avg Revenue beat(12)-2.78%
Revenue beat(16)1
Avg Revenue beat(16)-2.11%
PT rev (1m)-0.69%
PT rev (3m)-6.68%
EPS NQ rev (1m)-1.41%
EPS NQ rev (3m)-9.93%
EPS NY rev (1m)4.42%
EPS NY rev (3m)13.79%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 19.17
Fwd PE 32.79
P/S 8.17
P/FCF N/A
P/OCF 15.39
P/B 2.06
P/tB 2.06
EV/EBITDA 18.04
EPS(TTM)9.07
EY5.22%
EPS(NY)5.3
Fwd EY3.05%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.5%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)2.13
Graham Number131.17
Profitability
Industry RankSector Rank
ROA 5.31%
ROE 9.77%
ROCE 4.38%
ROIC 3.46%
ROICexc 3.48%
ROICexgc 3.63%
OM 30.35%
PM (TTM) 38.71%
GM 62.81%
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%
ROICexgc growth 3Y11.75%
ROICexgc 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 RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Debt/EBITDA 4.83
Cap/Depr 243.72%
Cap/Sales 72.43%
Interest Coverage 3.79
Cash Conversion 88.36%
Profit Quality N/A
Current Ratio 0.12
Quick Ratio 0.12
Altman-Z 1.71
F-Score6
WACC7.19%
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)19.5%
EPS 3Y8.71%
EPS 5Y9.02%
EPS Q2Q%43.94%
EPS Next Y-41.56%
EPS Next 2Y-21.88%
EPS Next 3Y-14.06%
EPS Next 5Y-6.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.93%
Revenue Next Year3.86%
Revenue Next 2Y4.65%
Revenue Next 3Y6.21%
Revenue Next 5Y5.64%
EBIT growth 1Y-0.11%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year79.4%
EBIT Next 3Y24.98%
EBIT Next 5Y17.18%
FCF growth 1Y-309.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.84%
OCF growth 3Y10.15%
OCF growth 5Y4%

AVALONBAY COMMUNITIES INC / AVB FAQ

Can you provide the ChartMill fundamental rating for AVALONBAY COMMUNITIES INC?

ChartMill assigns a fundamental rating of 4 / 10 to AVB.


What is the valuation status of AVALONBAY COMMUNITIES INC (AVB) stock?

ChartMill assigns a valuation rating of 3 / 10 to AVALONBAY COMMUNITIES INC (AVB). This can be considered as Overvalued.


Can you provide the profitability details for AVALONBAY COMMUNITIES INC?

AVALONBAY COMMUNITIES INC (AVB) has a profitability rating of 7 / 10.


What is the valuation of AVALONBAY COMMUNITIES INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AVALONBAY COMMUNITIES INC (AVB) is 19.17 and the Price/Book (PB) ratio is 2.06.


Can you provide the expected EPS growth for AVB stock?

The Earnings per Share (EPS) of AVALONBAY COMMUNITIES INC (AVB) is expected to decline by -41.56% in the next year.