ARMADA HOFFLER PROPERTIES IN (AHH) Stock Fundamental Analysis
NYSE:AHH - New York Stock Exchange, Inc. - US04208T1088 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to AHH. AHH was compared to 130 industry peers in the Diversified REITs industry. There are concerns on the financial health of AHH while its profitability can be described as average. AHH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AHH was profitable.
AHH had a positive operating cash flow in the past year.
Of the past 5 years AHH 4 years were profitable.
Each year in the past 5 years AHH had a positive operating cash flow.
1.2 Ratios
AHH's Return On Assets of 0.96% is in line compared to the rest of the industry. AHH outperforms 55.38% of its industry peers.
AHH's Return On Equity of 3.59% is fine compared to the rest of the industry. AHH outperforms 64.62% of its industry peers.
With a decent Return On Invested Capital value of 3.58%, AHH is doing good in the industry, outperforming 69.23% of the companies in the same industry.
AHH had an Average Return On Invested Capital over the past 3 years of 3.02%. This is in line with the industry average of 3.19%.
The 3 year average ROIC (3.02%) for AHH is below the current ROIC(3.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 3.59% | ||
| ROIC | 3.58% |
ROA(3y)1.22%
ROA(5y)1.06%
ROE(3y)4.26%
ROE(5y)3.76%
ROIC(3y)3.02%
ROIC(5y)2.68%
1.3 Margins
AHH has a Profit Margin of 3.40%. This is comparable to the rest of the industry: AHH outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of AHH has declined.
AHH has a worse Operating Margin (13.05%) than 68.46% of its industry peers.
AHH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.72%, AHH is doing worse than 89.23% of the companies in the same industry.
AHH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.05% | ||
| PM (TTM) | 3.4% | ||
| GM | 28.72% |
OM growth 3Y-5.03%
OM growth 5Y-3%
PM growth 3Y-2.11%
PM growth 5Y-16.54%
GM growth 3Y-13.85%
GM growth 5Y-7.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AHH is destroying value.
AHH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AHH has been increased compared to 5 years ago.
Compared to 1 year ago, AHH has an improved debt to assets ratio.
2.2 Solvency
AHH has an Altman-Z score of 0.46. This is a bad value and indicates that AHH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AHH (0.46) is comparable to the rest of the industry.
The Debt to FCF ratio of AHH is 26.78, which is on the high side as it means it would take AHH, 26.78 years of fcf income to pay off all of its debts.
AHH has a Debt to FCF ratio of 26.78. This is in the better half of the industry: AHH outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that AHH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.87, AHH is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 26.78 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.5
WACC7.18%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AHH may have some problems paying its short term obligations.
AHH has a worse Current ratio (0.68) than 64.62% of its industry peers.
A Quick Ratio of 0.67 indicates that AHH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, AHH is doing worse than 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
AHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 780.00%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.62% on average over the past years.
The Revenue has been growing slightly by 6.20% in the past year.
Measured over the past years, AHH shows a very strong growth in Revenue. The Revenue has been growing by 22.46% on average per year.
EPS 1Y (TTM)780%
EPS 3Y-4.47%
EPS 5Y-3.62%
EPS Q2Q%196.3%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%5.2%
3.2 Future
AHH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.36% yearly.
AHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
EPS Next Y-64.35%
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y0.24%
Revenue Next 3Y6.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 20.00 indicates a rather expensive valuation of AHH.
Based on the Price/Earnings ratio, AHH is valued a bit cheaper than 78.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of AHH to the average of the S&P500 Index (28.64), we can say AHH is valued slightly cheaper.
The Price/Forward Earnings ratio is 56.11, which means the current valuation is very expensive for AHH.
The rest of the industry has a similar Price/Forward Earnings ratio as AHH.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, AHH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 56.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AHH is valued a bit cheaper than 73.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AHH is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 11.02 |
4.3 Compensation for Growth
AHH's earnings are expected to decrease with -17.36% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.21%, AHH is a good candidate for dividend investing.
The stock price of AHH dropped by -30.96% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 16.87, AHH pays a bit more dividend than its industry peers.
AHH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
5.2 History
The dividend of AHH decreases each year by -0.20%.
AHH has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of AHH decreased recently.
Dividend Growth(5Y)-0.2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AHH pays out 348.15% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of AHH has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP348.15%
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
6.8
-0.14 (-2.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.2%
Inst Owner Change0.89%
Ins Owners1.53%
Ins Owner Change-39.16%
Market Cap688.98M
Analysts77.5
Price Target10.26 (50.88%)
Short Float %2.38%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.21% |
Yearly Dividend1.15
Dividend Growth(5Y)-0.2%
DP348.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)238.28%
Min EPS beat(2)-281.52%
Max EPS beat(2)758.09%
EPS beat(4)2
Avg EPS beat(4)268.41%
Min EPS beat(4)-281.52%
Max EPS beat(4)758.09%
EPS beat(8)3
Avg EPS beat(8)62.34%
EPS beat(12)7
Avg EPS beat(12)86.22%
EPS beat(16)10
Avg EPS beat(16)72.88%
Revenue beat(2)1
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)4.47%
Revenue beat(4)3
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.18%
Revenue beat(12)9
Avg Revenue beat(12)37.79%
Revenue beat(16)13
Avg Revenue beat(16)41.2%
PT rev (1m)-8.11%
PT rev (3m)-14.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)300%
EPS NY rev (1m)-25%
EPS NY rev (3m)-7.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 56.11 | ||
| P/S | 0.97 | ||
| P/FCF | 13.29 | ||
| P/OCF | 6.15 | ||
| P/B | 1.03 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)0.34
EY5%
EPS(NY)0.12
Fwd EY1.78%
FCF(TTM)0.51
FCFY7.52%
OCF(TTM)1.11
OCFY16.26%
SpS6.99
BVpS6.62
TBVpS5.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 3.59% | ||
| ROCE | 4.2% | ||
| ROIC | 3.58% | ||
| ROICexc | 3.7% | ||
| ROICexgc | 3.98% | ||
| OM | 13.05% | ||
| PM (TTM) | 3.4% | ||
| GM | 28.72% | ||
| FCFM | 7.32% |
ROA(3y)1.22%
ROA(5y)1.06%
ROE(3y)4.26%
ROE(5y)3.76%
ROIC(3y)3.02%
ROIC(5y)2.68%
ROICexc(3y)3.1%
ROICexc(5y)2.75%
ROICexgc(3y)3.34%
ROICexgc(5y)2.94%
ROCE(3y)3.55%
ROCE(5y)3.15%
ROICexcg growth 3Y20.77%
ROICexcg growth 5Y12.99%
ROICexc growth 3Y20.3%
ROICexc growth 5Y12.79%
OM growth 3Y-5.03%
OM growth 5Y-3%
PM growth 3Y-2.11%
PM growth 5Y-16.54%
GM growth 3Y-13.85%
GM growth 5Y-7.04%
F-Score8
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 26.78 | ||
| Debt/EBITDA | 6.82 | ||
| Cap/Depr | 66.17% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 61.08% | ||
| Profit Quality | 215.11% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 0.46 |
F-Score8
WACC7.18%
ROIC/WACC0.5
Cap/Depr(3y)149.29%
Cap/Depr(5y)164.85%
Cap/Sales(3y)23.05%
Cap/Sales(5y)29.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)780%
EPS 3Y-4.47%
EPS 5Y-3.62%
EPS Q2Q%196.3%
EPS Next Y-64.35%
EPS Next 2Y-37.86%
EPS Next 3Y-17.36%
EPS Next 5YN/A
Revenue 1Y (TTM)6.2%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%5.2%
Revenue Next Year-2%
Revenue Next 2Y0.24%
Revenue Next 3Y6.13%
Revenue Next 5YN/A
EBIT growth 1Y26.63%
EBIT growth 3Y28.78%
EBIT growth 5Y18.79%
EBIT Next Year88.7%
EBIT Next 3Y24.62%
EBIT Next 5YN/A
FCF growth 1Y3409.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.05%
OCF growth 3Y7.09%
OCF growth 5Y10.6%