UDR INC (UDR) Stock Fundamental Analysis
NYSE:UDR - New York Stock Exchange, Inc. - US9026531049 - REIT - Currency: USD
Taking everything into account, UDR scores 4 out of 10 in our fundamental rating. UDR was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate. UDR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UDR was profitable.
UDR had a positive operating cash flow in the past year.
In the past 5 years UDR has always been profitable.
Each year in the past 5 years UDR had a positive operating cash flow.
1.2 Ratios
UDR's Return On Assets of 0.78% is in line compared to the rest of the industry. UDR outperforms 60.00% of its industry peers.
UDR has a Return On Equity (2.46%) which is in line with its industry peers.
UDR's Return On Invested Capital of 2.21% is in line compared to the rest of the industry. UDR outperforms 45.00% 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 3 year average ROIC (2.04%) for UDR is below the current ROIC(2.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 2.46% | ||
| ROIC | 2.21% |
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
UDR has a Profit Margin (5.07%) which is comparable to the rest of the industry.
UDR's Profit Margin has declined in the last couple of years.
UDR has a Operating Margin of 16.92%. This is comparable to the rest of the industry: UDR outperforms 45.00% of its industry peers.
In the last couple of years the Operating Margin of UDR has declined.
UDR has a Gross Margin of 65.38%. This is amongst the best in the industry. UDR outperforms 90.00% of its industry peers.
In the last couple of years the Gross Margin of UDR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 65.38% |
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.
Compared to 5 years ago, UDR has more shares outstanding
The debt/assets ratio for UDR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that UDR is in the distress zone and has some risk of bankruptcy.
UDR has a Altman-Z score of 0.69. This is in the lower half of the industry: UDR underperforms 60.00% of its industry peers.
UDR has a debt to FCF ratio of 10.84. This is a negative value and a sign of low solvency as UDR would need 10.84 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 10.84, UDR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
UDR has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.64, UDR is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 10.84 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.31
WACC7.13%
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.
UDR's Current ratio of 0.00 is on the low side compared to the rest of the industry. UDR is outperformed by 95.00% of its industry peers.
A Quick Ratio of 0.00 indicates that UDR may have some problems paying its short term obligations.
With a Quick 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.
| 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 -81.06% 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.
UDR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.72%.
Measured over the past years, UDR shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
EPS 1Y (TTM)-81.06%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%-120%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%2.32%
3.2 Future
The Earnings Per Share is expected to grow by 47.44% on average over the next years. This is a very strong growth
UDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y109.07%
EPS Next 2Y60.17%
EPS Next 3Y47.44%
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y3.16%
Revenue Next 3Y3.49%
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
Based on the Price/Earnings ratio of 166.28, the valuation of UDR can be described as expensive.
UDR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of UDR to the average of the S&P500 Index (28.92), we can say UDR is valued expensively.
A Price/Forward Earnings ratio of 79.53 indicates a quite expensive valuation of UDR.
UDR's Price/Forward Earnings is on the same level as the industry average.
UDR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 166.28 | ||
| Fwd PE | 79.53 |
4.2 Price Multiples
UDR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. UDR is more expensive than 60.00% of the companies in the same industry.
90.00% 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 | 25.61 | ||
| EV/EBITDA | 19.73 |
4.3 Compensation for Growth
UDR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as UDR's earnings are expected to grow with 47.44% in the coming years.
PEG (NY)1.52
PEG (5Y)N/A
EPS Next 2Y60.17%
EPS Next 3Y47.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, UDR is a good candidate for dividend investing.
UDR's Dividend Yield is comparable with the industry average which is at 4.58.
Compared to an average S&P500 Dividend Yield of 2.51, UDR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
664.70% of the earnings are spent on dividend by UDR. This is not a sustainable payout ratio.
The dividend of UDR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP664.7%
EPS Next 2Y60.17%
EPS Next 3Y47.44%
41.57
-0.23 (-0.55%)
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 Change0.11%
Ins Owners0.48%
Ins Owner Change-0.9%
Market Cap13.77B
Analysts70.71
Price Target47.31 (13.81%)
Short Float %2.12%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend1.67
Dividend Growth(5Y)4.23%
DP664.7%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-85.91%
Min EPS beat(2)-130.25%
Max EPS beat(2)-41.57%
EPS beat(4)1
Avg EPS beat(4)-40.07%
Min EPS beat(4)-130.25%
Max EPS beat(4)27.44%
EPS beat(8)2
Avg EPS beat(8)70.51%
EPS beat(12)4
Avg EPS beat(12)41.95%
EPS beat(16)8
Avg EPS beat(16)132.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)-0.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.27%
Revenue beat(12)1
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.38%
PT rev (1m)0.62%
PT rev (3m)-0.68%
EPS NQ rev (1m)-26.53%
EPS NQ rev (3m)4.65%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)8.76%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)2.01%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 166.28 | ||
| Fwd PE | 79.53 | ||
| P/S | 8.23 | ||
| P/FCF | 25.61 | ||
| P/OCF | 15.7 | ||
| P/B | 4 | ||
| P/tB | 4 | ||
| EV/EBITDA | 19.73 |
EPS(TTM)0.25
EY0.6%
EPS(NY)0.52
Fwd EY1.26%
FCF(TTM)1.62
FCFY3.91%
OCF(TTM)2.65
OCFY6.37%
SpS5.05
BVpS10.4
TBVpS10.4
PEG (NY)1.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 2.46% | ||
| ROCE | 2.88% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 2.25% | ||
| OM | 16.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 65.38% | ||
| FCFM | 32.16% |
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-Score4
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 10.84 | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 48.78% | ||
| Cap/Sales | 20.29% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 634.37% | ||
| Current Ratio | 0 | ||
| Quick Ratio | 0 | ||
| Altman-Z | 0.69 |
F-Score4
WACC7.13%
ROIC/WACC0.31
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)-81.06%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%-120%
EPS Next Y109.07%
EPS Next 2Y60.17%
EPS Next 3Y47.44%
EPS Next 5YN/A
Revenue 1Y (TTM)2.72%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%2.32%
Revenue Next Year2.56%
Revenue Next 2Y3.16%
Revenue Next 3Y3.49%
Revenue Next 5Y4.22%
EBIT growth 1Y-1.42%
EBIT growth 3Y27.76%
EBIT growth 5Y5.51%
EBIT Next Year233.86%
EBIT Next 3Y53.45%
EBIT Next 5Y39%
FCF growth 1Y55.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.31%
OCF growth 3Y9.71%
OCF growth 5Y6.81%