UDR INC (UDR) Stock Fundamental Analysis
NYSE:UDR - New York Stock Exchange, Inc. - US9026531049 - REIT - Currency: USD
Overall UDR gets a fundamental rating of 4 out of 10. We evaluated UDR 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UDR had positive earnings in the past year.
In the past year UDR had a positive cash flow from operations.
UDR had positive earnings in each of the past 5 years.
Each year in the past 5 years UDR had a positive operating cash flow.
1.2 Ratios
UDR has a Return On Assets of 1.10%. This is comparable to the rest of the industry: UDR outperforms 55.00% of its industry peers.
With a Return On Equity value of 3.55%, UDR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
UDR's Return On Invested Capital of 2.30% is in line compared to the rest of the industry. UDR outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UDR is in line with the industry average of 2.62%.
The 3 year average ROIC (2.04%) for UDR is below the current ROIC(2.30%), indicating increased profibility in the last year.
| 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 55.00% of the companies in the same industry.
In the last couple of years the Profit Margin of UDR has declined.
UDR's Operating Margin of 17.34% is on the low side compared to the rest of the industry. UDR is outperformed by 60.00% of its industry peers.
In the last couple of years the Operating Margin of UDR has declined.
Looking at the Gross Margin, with a value of 65.39%, UDR belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UDR is destroying value.
The number of shares outstanding for UDR has been reduced compared to 1 year ago.
The number of shares outstanding for UDR has been increased compared to 5 years ago.
Compared to 1 year ago, UDR has a worse debt to assets ratio.
2.2 Solvency
UDR has an Altman-Z score of 0.62. This is a bad value and indicates that UDR is not financially healthy and even has some risk of bankruptcy.
UDR has a worse Altman-Z score (0.62) than 60.00% of its industry peers.
UDR has a debt to FCF ratio of 10.70. This is a negative value and a sign of low solvency as UDR would need 10.70 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 10.70, UDR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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 | 0.62 |
ROIC/WACC0.33
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.00 indicates that UDR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.00, UDR is doing worse than 95.00% of the companies in the same industry.
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
UDR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.32%.
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 2.72% 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)-7.32%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%37.5%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%2.34%
3.2 Future
The Earnings Per Share is expected to grow by 42.84% 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 Y135.33%
EPS Next 2Y56.55%
EPS Next 3Y42.84%
EPS Next 5YN/A
Revenue Next Year2.2%
Revenue Next 2Y2.85%
Revenue Next 3Y3.36%
Revenue Next 5Y3.22%
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 accelerating.
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
A Price/Earnings ratio of 100.24 indicates a quite expensive valuation of UDR.
Compared to the rest of the industry, the Price/Earnings ratio of UDR is on the same level as its industry peers.
UDR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 62.16 indicates a quite expensive valuation of UDR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UDR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, UDR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.24 | ||
| Fwd PE | 62.16 |
4.2 Price Multiples
UDR's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 23.23 | ||
| EV/EBITDA | 18.77 |
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 42.84% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y56.55%
EPS Next 3Y42.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, UDR is a good candidate for dividend investing.
UDR's Dividend Yield is a higher than the industry average which is at 4.74.
UDR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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.
UDR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP478.08%
EPS Next 2Y56.55%
EPS Next 3Y42.84%
38.09
-0.7 (-1.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.83%
Inst Owner Change0.02%
Ins Owners0.48%
Ins Owner Change0.04%
Market Cap12.62B
Analysts69.63
Price Target46.28 (21.5%)
Short Float %2.28%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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)-1.14%
PT rev (3m)-0.68%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)0.62%
EPS NY rev (3m)12.56%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.24 | ||
| Fwd PE | 62.16 | ||
| P/S | 7.51 | ||
| P/FCF | 23.23 | ||
| P/OCF | 14.58 | ||
| P/B | 3.79 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 18.77 |
EPS(TTM)0.38
EY1%
EPS(NY)0.61
Fwd EY1.61%
FCF(TTM)1.64
FCFY4.31%
OCF(TTM)2.61
OCFY6.86%
SpS5.07
BVpS10.05
TBVpS10.05
PEG (NY)0.74
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 | 0.62 |
F-Score5
WACC6.92%
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)-7.32%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%37.5%
EPS Next Y135.33%
EPS Next 2Y56.55%
EPS Next 3Y42.84%
EPS Next 5YN/A
Revenue 1Y (TTM)2.72%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%2.34%
Revenue Next Year2.2%
Revenue Next 2Y2.85%
Revenue Next 3Y3.36%
Revenue Next 5Y3.22%
EBIT growth 1Y1.92%
EBIT growth 3Y27.76%
EBIT growth 5Y5.51%
EBIT Next Year234.81%
EBIT Next 3Y53.31%
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%