UDR INC (UDR) Stock Fundamental Analysis
NYSE:UDR - New York Stock Exchange, Inc. - US9026531049 - REIT - Currency: USD
UDR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While UDR is still in line with the averages on profitability rating, there are concerns on its financial health. UDR is not valued too expensively and it also shows a decent growth rate. Finally UDR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UDR had positive earnings in the past year.
UDR had a positive operating cash flow in the past year.
UDR had positive earnings in each of the past 5 years.
UDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.10%, UDR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Return On Equity of UDR (3.55%) is better than 65.00% of its industry peers.
UDR has a Return On Invested Capital of 2.30%. This is comparable to the rest of the industry: UDR outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UDR is in line with the industry average of 2.75%.
The last Return On Invested Capital (2.30%) for UDR is above the 3 year average (2.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.55% | ||
| ROIC | 2.3% |
ROA(3y)1.8%
ROA(5y)1.47%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)2.04%
ROIC(5y)1.66%
1.3 Margins
Looking at the Profit Margin, with a value of 7.04%, UDR is in line with its industry, outperforming 60.00% of the companies in the same industry.
UDR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.34%, UDR is doing worse than 60.00% of the companies in the same industry.
UDR's Operating Margin has declined in the last couple of years.
UDR's Gross Margin of 65.39% is amongst the best of the industry. UDR outperforms 90.00% of its industry peers.
UDR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.34% | ||
| PM (TTM) | 7.04% | ||
| GM | 65.39% |
OM growth 3Y17.2%
OM growth 5Y-2.06%
PM growth 3Y-23.44%
PM growth 5Y-20.24%
GM growth 3Y0.34%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
UDR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UDR has less shares outstanding than it did 1 year ago.
UDR has more shares outstanding than it did 5 years ago.
UDR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that UDR is in the distress zone and has some risk of bankruptcy.
UDR has a Altman-Z score of 0.71. This is in the lower half of the industry: UDR underperforms 60.00% of its industry peers.
The Debt to FCF ratio of UDR is 10.70, which is on the high side as it means it would take UDR, 10.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UDR (10.70) is better than 85.00% of its industry peers.
A Debt/Equity ratio of 1.69 is on the high side and indicates that UDR has dependencies on debt financing.
UDR has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: UDR underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.7 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.32
WACC7.19%
2.3 Liquidity
UDR has a Current Ratio of 0.00. This is a bad value and indicates that UDR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.00, UDR is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
UDR has a Quick Ratio of 0.00. This is a bad value and indicates that UDR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of UDR (0.00) is worse than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0 | ||
| Quick Ratio | 0 |
3. Growth
3.1 Past
The earnings per share for UDR have decreased strongly by -74.07% in the last year.
Measured over the past years, UDR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.61% on average per year.
The Revenue has been growing slightly by 2.35% in the past year.
UDR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
EPS 1Y (TTM)-74.07%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%76.92%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%1.98%
3.2 Future
UDR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.97% yearly.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y124.89%
EPS Next 2Y58.65%
EPS Next 3Y43.97%
EPS Next 5YN/A
Revenue Next Year2.32%
Revenue Next 2Y2.93%
Revenue Next 3Y3.43%
Revenue Next 5Y4.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
UDR is valuated quite expensively with a Price/Earnings ratio of 120.00.
The rest of the industry has a similar Price/Earnings ratio as UDR.
UDR is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
UDR is valuated quite expensively with a Price/Forward Earnings ratio of 66.75.
The rest of the industry has a similar Price/Forward Earnings ratio as UDR.
UDR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120 | ||
| Fwd PE | 66.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UDR is valued a bit more expensive than 65.00% of the companies in the same industry.
85.00% of the companies in the same industry are more expensive than UDR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.6 | ||
| EV/EBITDA | 19.92 |
4.3 Compensation for Growth
UDR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as UDR's earnings are expected to grow with 43.97% in the coming years.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y58.65%
EPS Next 3Y43.97%
5. Dividend
5.1 Amount
UDR has a Yearly Dividend Yield of 4.11%, which is a nice return.
Compared to an average industry Dividend Yield of 4.43, UDR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, UDR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
The dividend of UDR has a limited annual growth rate of 4.23%.
UDR has been paying a dividend for at least 10 years, so it has a reliable track record.
UDR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.23%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
UDR pays out 478.08% of its income as dividend. This is not a sustainable payout ratio.
UDR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP478.08%
EPS Next 2Y58.65%
EPS Next 3Y43.97%
42
-0.23 (-0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0.06%
Ins Owners0.48%
Ins Owner Change-0.9%
Market Cap13.91B
Analysts70.71
Price Target46.92 (11.71%)
Short Float %1.58%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.67
Dividend Growth(5Y)4.23%
DP478.08%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.72%
Min EPS beat(2)-130.25%
Max EPS beat(2)96.8%
EPS beat(4)1
Avg EPS beat(4)-22.73%
Min EPS beat(4)-130.25%
Max EPS beat(4)96.8%
EPS beat(8)3
Avg EPS beat(8)83.73%
EPS beat(12)4
Avg EPS beat(12)48.19%
EPS beat(16)8
Avg EPS beat(16)126.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)4
Avg Revenue beat(16)-0.37%
PT rev (1m)-0.82%
PT rev (3m)0.31%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)7.57%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120 | ||
| Fwd PE | 66.75 | ||
| P/S | 8.28 | ||
| P/FCF | 25.6 | ||
| P/OCF | 16.07 | ||
| P/B | 4.18 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 19.92 |
EPS(TTM)0.35
EY0.83%
EPS(NY)0.63
Fwd EY1.5%
FCF(TTM)1.64
FCFY3.91%
OCF(TTM)2.61
OCFY6.22%
SpS5.07
BVpS10.06
TBVpS10.06
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.55% | ||
| ROCE | 2.98% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.3% | ||
| ROICexgc | 2.34% | ||
| OM | 17.34% | ||
| PM (TTM) | 7.04% | ||
| GM | 65.39% | ||
| FCFM | 32.34% |
ROA(3y)1.8%
ROA(5y)1.47%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)2.04%
ROIC(5y)1.66%
ROICexc(3y)2.04%
ROICexc(5y)1.66%
ROICexgc(3y)2.08%
ROICexgc(5y)1.7%
ROCE(3y)2.67%
ROCE(5y)2.17%
ROICexcg growth 3Y28%
ROICexcg growth 5Y3.06%
ROICexc growth 3Y28.08%
ROICexc growth 5Y3.08%
OM growth 3Y17.2%
OM growth 5Y-2.06%
PM growth 3Y-23.44%
PM growth 5Y-20.24%
GM growth 3Y0.34%
GM growth 5Y-0.92%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.7 | ||
| Debt/EBITDA | 5.74 | ||
| Cap/Depr | 46.71% | ||
| Cap/Sales | 19.18% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 88.22% | ||
| Profit Quality | 459.07% | ||
| Current Ratio | 0 | ||
| Quick Ratio | 0 | ||
| Altman-Z | 0.71 |
F-Score5
WACC7.19%
ROIC/WACC0.32
Cap/Depr(3y)77.75%
Cap/Depr(5y)120.71%
Cap/Sales(3y)33.77%
Cap/Sales(5y)56.24%
Profit Quality(3y)255.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-74.07%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%76.92%
EPS Next Y124.89%
EPS Next 2Y58.65%
EPS Next 3Y43.97%
EPS Next 5YN/A
Revenue 1Y (TTM)2.35%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%1.98%
Revenue Next Year2.32%
Revenue Next 2Y2.93%
Revenue Next 3Y3.43%
Revenue Next 5Y4.22%
EBIT growth 1Y1.92%
EBIT growth 3Y27.76%
EBIT growth 5Y5.51%
EBIT Next Year233.86%
EBIT Next 3Y53.45%
EBIT Next 5Y39%
FCF growth 1Y856.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.64%
OCF growth 3Y9.71%
OCF growth 5Y6.81%