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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AHH was profitable.
In the past year AHH had a positive cash flow from operations.
AHH had positive earnings in 4 of the past 5 years.
In the past 5 years AHH always reported a positive cash flow from operatings.
1.2 Ratios
AHH's Return On Assets of 0.29% is in line compared to the rest of the industry. AHH outperforms 44.62% of its industry peers.
The Return On Equity of AHH (1.10%) is comparable to the rest of the industry.
AHH has a Return On Invested Capital of 3.34%. This is in the better half of the industry: AHH outperforms 65.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AHH is in line with the industry average of 3.16%.
The 3 year average ROIC (3.02%) for AHH is below the current ROIC(3.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 1.1% | ||
| ROIC | 3.34% |
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 (1.15%) which is in line with its industry peers.
AHH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.68%, AHH is doing worse than 68.46% of the companies in the same industry.
AHH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 31.96%, AHH is doing worse than 90.00% of the companies in the same industry.
AHH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.68% | ||
| PM (TTM) | 1.15% | ||
| GM | 31.96% |
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
AHH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AHH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AHH has more shares outstanding
Compared to 1 year ago, AHH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that AHH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.43, AHH perfoms like the industry average, outperforming 46.92% of the companies in the same industry.
AHH has a debt to FCF ratio of 117.02. This is a negative value and a sign of low solvency as AHH would need 117.02 years to pay back of all of its debts.
AHH has a Debt to FCF ratio (117.02) which is in line with its industry peers.
A Debt/Equity ratio of 1.94 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 1.94, AHH is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 117.02 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.47
WACC7.12%
2.3 Liquidity
A Current Ratio of 0.65 indicates that AHH may have some problems paying its short term obligations.
The Current ratio of AHH (0.65) is worse than 68.46% of its industry peers.
A Quick Ratio of 0.63 indicates that AHH may have some problems paying its short term obligations.
The Quick ratio of AHH (0.63) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.33% over the past year.
The Earnings Per Share has been decreasing by -3.62% on average over the past years.
Looking at the last year, AHH shows a very negative growth in Revenue. The Revenue has decreased by -12.11% in the last year.
The Revenue has been growing by 22.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)33.33%
EPS 3Y-4.47%
EPS 5Y-3.62%
EPS Q2Q%-129.41%
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%3.1%
3.2 Future
Based on estimates for the next years, AHH will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.83% on average per year.
AHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y-73.26%
EPS Next 2Y-35.51%
EPS Next 3Y-18.83%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y0.03%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
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 decreasing.
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
The Price/Earnings ratio is 59.58, which means the current valuation is very expensive for AHH.
The rest of the industry has a similar Price/Earnings ratio as AHH.
When comparing the Price/Earnings ratio of AHH to the average of the S&P500 Index (27.45), we can say AHH is valued expensively.
A Price/Forward Earnings ratio of 50.57 indicates a quite expensive valuation of AHH.
AHH's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. AHH is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.58 | ||
| Fwd PE | 50.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AHH is valued a bit cheaper than the industry average as 71.54% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as AHH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.44 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
AHH's earnings are expected to decrease with -18.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-35.51%
EPS Next 3Y-18.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.83%, AHH is a good candidate for dividend investing.
AHH's Dividend Yield is a higher than the industry average which is at 6.64.
AHH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
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 1211.22% 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.
DP1211.22%
EPS Next 2Y-35.51%
EPS Next 3Y-18.83%
7.15
+0.06 (+0.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners84.18%
Inst Owner Change-5.84%
Ins Owners0.97%
Ins Owner Change-20.97%
Market Cap730.01M
Analysts80
Price Target8.8 (23.08%)
Short Float %2.95%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
Yearly Dividend1.15
Dividend Growth(5Y)-0.2%
DP1211.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)205.28%
Min EPS beat(2)-347.52%
Max EPS beat(2)758.09%
EPS beat(4)1
Avg EPS beat(4)16.26%
Min EPS beat(4)-347.52%
Max EPS beat(4)758.09%
EPS beat(8)3
Avg EPS beat(8)27.69%
EPS beat(12)6
Avg EPS beat(12)51.98%
EPS beat(16)10
Avg EPS beat(16)51.91%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-0.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)4.47%
Revenue beat(8)5
Avg Revenue beat(8)-0.04%
Revenue beat(12)8
Avg Revenue beat(12)32.93%
Revenue beat(16)12
Avg Revenue beat(16)36.04%
PT rev (1m)-9.8%
PT rev (3m)-14.29%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)-25%
EPS NY rev (3m)-25%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.58 | ||
| Fwd PE | 50.57 | ||
| P/S | 1.16 | ||
| P/FCF | 60.44 | ||
| P/OCF | 11.12 | ||
| P/B | 1.11 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)0.12
EY1.68%
EPS(NY)0.14
Fwd EY1.98%
FCF(TTM)0.12
FCFY1.65%
OCF(TTM)0.64
OCFY8.99%
SpS6.17
BVpS6.44
TBVpS5.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.29% | ||
| ROE | 1.1% | ||
| ROCE | 3.92% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 3.65% | ||
| OM | 13.68% | ||
| PM (TTM) | 1.15% | ||
| GM | 31.96% | ||
| FCFM | 1.92% |
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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 117.02 | ||
| Debt/EBITDA | 7.12 | ||
| Cap/Depr | 57.38% | ||
| Cap/Sales | 8.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.57% | ||
| Profit Quality | 167.31% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.43 |
F-Score6
WACC7.12%
ROIC/WACC0.47
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)33.33%
EPS 3Y-4.47%
EPS 5Y-3.62%
EPS Q2Q%-129.41%
EPS Next Y-73.26%
EPS Next 2Y-35.51%
EPS Next 3Y-18.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y35.61%
Revenue growth 5Y22.46%
Sales Q2Q%3.1%
Revenue Next Year-2%
Revenue Next 2Y0.03%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
EBIT growth 1Y13.19%
EBIT growth 3Y28.78%
EBIT growth 5Y18.79%
EBIT Next Year77.94%
EBIT Next 3Y24.19%
EBIT Next 5YN/A
FCF growth 1Y188.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.96%
OCF growth 3Y7.09%
OCF growth 5Y10.6%