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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year UDR was profitable.
In the past year UDR had a positive cash flow from operations.
Each year in the past 5 years UDR has been profitable.
UDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UDR (1.10%) is comparable to the rest of the industry.
UDR has a better Return On Equity (3.55%) than 65.00% of its industry peers.
UDR has a Return On Invested Capital (2.30%) which is comparable to the rest of the industry.
UDR had an Average Return On Invested Capital over the past 3 years of 2.04%. This is in line with the industry average of 2.62%.
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
UDR has a Profit Margin (7.04%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of UDR has declined.
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.
In the last couple of years the Operating Margin of UDR has declined.
UDR has a Gross Margin of 65.39%. 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UDR is destroying value.
Compared to 1 year ago, UDR has less shares outstanding
UDR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UDR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that UDR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, UDR is doing worse than 60.00% of the companies in the same industry.
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.
UDR has a better Debt to FCF ratio (10.70) than 85.00% of its industry peers.
UDR has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.69, UDR is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.7 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.33
WACC7.03%
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 has a worse Current ratio (0.00) than 95.00% of its industry peers.
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.
UDR has a Quick ratio of 0.00. This is amonst the worse of the industry: UDR underperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0 | ||
| Quick Ratio | 0 |
3. Growth
3.1 Past
UDR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.07%.
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.
The Revenue has been growing slightly by 7.73% on average over the past years.
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
The Earnings Per Share is expected to grow by 42.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, UDR will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.
EPS Next Y133.87%
EPS Next 2Y56.34%
EPS Next 3Y42.56%
EPS Next 5YN/A
Revenue Next Year2.26%
Revenue Next 2Y2.88%
Revenue Next 3Y3.43%
Revenue Next 5Y3.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 116.57, UDR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as UDR.
The average S&P500 Price/Earnings ratio is at 27.45. UDR is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 66.77, UDR can be considered very expensive at the moment.
UDR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, UDR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 116.57 | ||
| Fwd PE | 66.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UDR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, UDR is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.88 | ||
| EV/EBITDA | 19.45 |
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.
UDR's earnings are expected to grow with 42.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y56.34%
EPS Next 3Y42.56%
5. Dividend
5.1 Amount
UDR has a Yearly Dividend Yield of 4.21%, which is a nice return.
Compared to an average industry Dividend Yield of 4.72, UDR has a dividend in line with its industry peers.
UDR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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.
Dividend Growth(5Y)4.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
UDR pays out 478.08% of its income as dividend. This is not a sustainable payout ratio.
The dividend of UDR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP478.08%
EPS Next 2Y56.34%
EPS Next 3Y42.56%
40.8
+0.23 (+0.57%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.58%
Inst Owner Change-0.01%
Ins Owners0.47%
Ins Owner Change-0.9%
Market Cap13.52B
Analysts70.71
Price Target47.33 (16%)
Short Float %2.16%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.67
Dividend Growth(5Y)4.23%
DP478.08%
Div Incr Years0
Div Non Decr Years0
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)0.88%
PT rev (3m)0.36%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)3.99%
EPS NY rev (3m)12.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 116.57 | ||
| Fwd PE | 66.77 | ||
| P/S | 8.05 | ||
| P/FCF | 24.88 | ||
| P/OCF | 15.62 | ||
| P/B | 4.06 | ||
| P/tB | 4.06 | ||
| EV/EBITDA | 19.45 |
EPS(TTM)0.35
EY0.86%
EPS(NY)0.61
Fwd EY1.5%
FCF(TTM)1.64
FCFY4.02%
OCF(TTM)2.61
OCFY6.4%
SpS5.07
BVpS10.05
TBVpS10.05
PEG (NY)0.87
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 | 0.67 |
F-Score5
WACC7.03%
ROIC/WACC0.33
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 Y133.87%
EPS Next 2Y56.34%
EPS Next 3Y42.56%
EPS Next 5YN/A
Revenue 1Y (TTM)2.35%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%1.98%
Revenue Next Year2.26%
Revenue Next 2Y2.88%
Revenue Next 3Y3.43%
Revenue Next 5Y3.22%
EBIT growth 1Y1.92%
EBIT growth 3Y27.76%
EBIT growth 5Y5.51%
EBIT Next Year236.38%
EBIT Next 3Y53.18%
EBIT Next 5Y39.38%
FCF growth 1Y856.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.64%
OCF growth 3Y9.71%
OCF growth 5Y6.81%