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AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis

NYSE:AVB - New York Stock Exchange, Inc. - US0534841012 - REIT - Currency: USD

199.86  -1.88 (-0.93%)

After market: 199.86 0 (0%)

Fundamental Rating

5

AVB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. AVB has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, AVB is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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8

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.
Each year in the past 5 years AVB had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

1.2 Ratios

AVB has a Return On Assets of 5.14%. This is amongst the best in the industry. AVB outperforms 95.00% of its industry peers.
AVB's Return On Equity of 9.04% is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
AVB has a Return On Invested Capital of 3.61%. This is amongst the best in 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 2.75%.
The last Return On Invested Capital (3.61%) for AVB is above the 3 year average (3.44%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.14%
ROE 9.04%
ROIC 3.61%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

AVB has a better Profit Margin (37.06%) than 95.00% of its industry peers.
In the last couple of years the Profit Margin of AVB has grown nicely.
With an excellent Operating Margin value of 31.43%, AVB belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
AVB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 63.16%, AVB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
AVB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 31.43%
PM (TTM) 37.06%
GM 63.16%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVB is destroying value.
The number of shares outstanding for AVB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AVB has more shares outstanding
Compared to 1 year ago, AVB has an improved debt to assets ratio.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 2.16 indicates that AVB is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVB has a better Altman-Z score (2.16) than 95.00% of its industry peers.
AVB has a Debt/Equity ratio of 0.68. This is a neutral value indicating AVB is somewhat dependend on debt financing.
AVB's Debt to Equity ratio of 0.68 is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Altman-Z 2.16
ROIC/WACC0.47
WACC7.65%
AVB Yearly LT Debt VS Equity VS FCFAVB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

AVB has a Current Ratio of 0.11. 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 0.11. This is in the lower half of the industry: AVB underperforms 75.00% of its industry peers.
AVB has a Quick Ratio of 0.11. This is a bad value and indicates that AVB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.11, AVB is doing worse than 70.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.11
Quick Ratio 0.11
AVB Yearly Current Assets VS Current LiabilitesAVB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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4

3. Growth

3.1 Past

AVB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.43%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
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)48.43%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%36.07%
Revenue 1Y (TTM)5.27%
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.
AVB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
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 2Y5.08%
Revenue Next 3Y5.27%
Revenue Next 5Y6.76%

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 accelerating.
AVB Yearly Revenue VS EstimatesAVB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

AVB is valuated rather expensively with a Price/Earnings ratio of 24.89.
Compared to the rest of the industry, the Price/Earnings ratio of AVB indicates a rather cheap valuation: AVB is cheaper than 100.00% of the companies listed in the same industry.
AVB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 34.22, which means the current valuation is very expensive for AVB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVB indicates a rather cheap valuation: AVB is cheaper than 90.00% of the companies listed in the same industry.
AVB's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.85.
Industry RankSector Rank
PE 24.89
Fwd PE 34.22
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 the industry average as 70.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 20.68
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

AVB has an outstanding profitability rating, which 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)4.07
EPS Next 2Y-12.28%
EPS Next 3Y-6.06%

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4

5. Dividend

5.1 Amount

AVB has a Yearly Dividend Yield of 3.41%.
AVB's Dividend Yield is slightly below the industry average, which is at 4.45.
AVB's Dividend Yield is a higher than the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 3.41%

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
AVB Yearly Dividends per shareAVB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

89.07% 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.
DP89.07%
EPS Next 2Y-12.28%
EPS Next 3Y-6.06%
AVB Yearly Income VS Free CF VS DividendAVB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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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AVALONBAY COMMUNITIES INC

NYSE:AVB (5/22/2025, 8:04:00 PM)

After market: 199.86 0 (0%)

199.86

-1.88 (-0.93%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners96.5%
Inst Owner Change1.6%
Ins Owners0.33%
Ins Owner Change6.76%
Market Cap28.45B
Analysts72.14
Price Target236.8 (18.48%)
Short Float %2.08%
Short Ratio3.43
Dividend
Industry RankSector Rank
Dividend Yield 3.41%
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP89.07%
Div Incr Years2
Div Non Decr Years26
Ex-Date03-31 2025-03-31 (1.75)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.64%
Min EPS beat(2)40.95%
Max EPS beat(2)78.32%
EPS beat(4)4
Avg EPS beat(4)40.67%
Min EPS beat(4)3.33%
Max EPS beat(4)78.32%
EPS beat(8)5
Avg EPS beat(8)19.9%
EPS beat(12)8
Avg EPS beat(12)28.97%
EPS beat(16)11
Avg EPS beat(16)31.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)-0.13%
Revenue beat(8)0
Avg Revenue beat(8)-3.63%
Revenue beat(12)1
Avg Revenue beat(12)-2.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)-2.62%
PT rev (3m)-2.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)0.59%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 24.89
Fwd PE 34.22
P/S 9.77
P/FCF N/A
P/OCF 17.7
P/B 2.38
P/tB 2.38
EV/EBITDA 20.68
EPS(TTM)8.03
EY4.02%
EPS(NY)5.84
Fwd EY2.92%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)11.29
OCFY5.65%
SpS20.47
BVpS83.87
TBVpS83.87
PEG (NY)N/A
PEG (5Y)4.07
Profitability
Industry RankSector Rank
ROA 5.14%
ROE 9.04%
ROCE 4.57%
ROIC 3.61%
ROICexc 3.63%
ROICexgc 3.63%
OM 31.43%
PM (TTM) 37.06%
GM 63.16%
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 RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Debt/EBITDA 4.59
Cap/Depr 190.53%
Cap/Sales 55.38%
Interest Coverage 4.29
Cash Conversion 91.22%
Profit Quality N/A
Current Ratio 0.11
Quick Ratio 0.11
Altman-Z 2.16
F-Score6
WACC7.65%
ROIC/WACC0.47
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)5.27%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.65%
Revenue Next Year4.88%
Revenue Next 2Y5.08%
Revenue Next 3Y5.27%
Revenue Next 5Y6.76%
EBIT growth 1Y3.32%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year79.68%
EBIT Next 3Y26.76%
EBIT Next 5Y17.18%
FCF growth 1Y-102.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.07%
OCF growth 3Y10.15%
OCF growth 5Y4%