Apartment Income REIT Corp (AIRC) Stock Fundamental Analysis
USA - NYSE:AIRC - US03750L1098 - REIT
39.08 USD
-0.01 (-0.03%)
39.09 USD
+0.01 (+0.03%)
Overall AIRC gets a fundamental rating of 3 out of 10. We evaluated AIRC against 20 industry peers in the Residential REITs industry. While AIRC is still in line with the averages on profitability rating, there are concerns on its financial health. AIRC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AIRC had negative earnings in the past year.
AIRC had a positive operating cash flow in the past year.
AIRC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AIRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.32%, AIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.05%, AIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AIRC has a Return On Invested Capital (1.97%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AIRC is in line with the industry average of 2.59%.
The last Return On Invested Capital (1.97%) for AIRC is above the 3 year average (1.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 28.05% | ||
| ROIC | 1.97% |
ROA(3y)10.36%
ROA(5y)7.23%
ROE(3y)31.18%
ROE(5y)22.35%
ROIC(3y)1.72%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AIRC (79.54%) is better than 100.00% of its industry peers.
Looking at the Operating Margin, with a value of 18.28%, AIRC is in line with its industry, outperforming 52.38% of the companies in the same industry.
The Gross Margin of AIRC (66.63%) is better than 90.48% of its industry peers.
In the last couple of years the Gross Margin of AIRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.28% | ||
| PM (TTM) | 79.54% | ||
| GM | 66.63% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.5%
GM growth 5YN/A
2. Health
2.1 Basic Checks
AIRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AIRC has less shares outstanding
AIRC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that AIRC is in the distress zone and has some risk of bankruptcy.
AIRC has a Altman-Z score (0.80) which is in line with its industry peers.
AIRC has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.47, AIRC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.29
WACC6.73%
2.3 Liquidity
A Current Ratio of 0.29 indicates that AIRC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.29, AIRC is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that AIRC may have some problems paying its short term obligations.
The Quick ratio of AIRC (0.29) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for AIRC have decreased strongly by -111.01% in the last year.
Looking at the last year, AIRC shows a decrease in Revenue. The Revenue has decreased by -0.05% in the last year.
The Revenue has been growing slightly by 4.45% on average over the past years.
EPS 1Y (TTM)-111.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y4.45%
Revenue growth 5YN/A
Sales Q2Q%-7.72%
3.2 Future
AIRC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.58% yearly.
AIRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y135.7%
EPS Next 2Y50.17%
EPS Next 3Y34.51%
EPS Next 5Y26.58%
Revenue Next Year-2.37%
Revenue Next 2Y0.47%
Revenue Next 3Y1.7%
Revenue Next 5Y2.23%
3.3 Evolution
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
AIRC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 383.14, AIRC can be considered very expensive at the moment.
AIRC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AIRC is more expensive than 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, AIRC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 383.14 |
4.2 Price Multiples
AIRC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AIRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AIRC's earnings are expected to grow with 34.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.17%
EPS Next 3Y34.51%
5. Dividend
5.1 Amount
AIRC has a Yearly Dividend Yield of 3.45%.
AIRC's Dividend Yield is comparable with the industry average which is at 7.05.
AIRC's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
AIRC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
41.31% of the earnings are spent on dividend by AIRC. This is a bit on the high side, but may be sustainable.
DP41.31%
EPS Next 2Y50.17%
EPS Next 3Y34.51%
39.08
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners12.48%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change0%
Market Cap5.67B
Revenue(TTM)803.88M
Net Income(TTM)639.37M
Analysts52.86
Price Target39.84 (1.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.81
Dividend Growth(5Y)N/A
DP41.31%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1388.93%
Min EPS beat(2)-2550.98%
Max EPS beat(2)-226.87%
EPS beat(4)0
Avg EPS beat(4)-784.26%
Min EPS beat(4)-2550.98%
Max EPS beat(4)-149.02%
EPS beat(8)2
Avg EPS beat(8)-320.08%
EPS beat(12)2
Avg EPS beat(12)-420.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-3.41%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-3.87%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-0.62%
Revenue beat(8)2
Avg Revenue beat(8)-2.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.31%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.59%
PT rev (3m)7.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)16.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 383.14 | ||
| P/S | 7.05 | ||
| P/FCF | N/A | ||
| P/OCF | 15.82 | ||
| P/B | 2.49 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 18.86 |
EPS(TTM)-0.37
EYN/A
EPS(NY)0.1
Fwd EY0.26%
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)2.47
OCFY6.32%
SpS5.54
BVpS15.71
TBVpS15.49
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 28.05% | ||
| ROCE | 2.49% | ||
| ROIC | 1.97% | ||
| ROICexc | 2% | ||
| ROICexgc | 2.13% | ||
| OM | 18.28% | ||
| PM (TTM) | 79.54% | ||
| GM | 66.63% | ||
| FCFM | N/A |
ROA(3y)10.36%
ROA(5y)7.23%
ROE(3y)31.18%
ROE(5y)22.35%
ROIC(3y)1.72%
ROIC(5y)N/A
ROICexc(3y)1.74%
ROICexc(5y)N/A
ROICexgc(3y)1.81%
ROICexgc(5y)N/A
ROCE(3y)2.17%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.5%
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.07 | ||
| Cap/Depr | 132.05% | ||
| Cap/Sales | 53.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.8 |
F-Score7
WACC6.73%
ROIC/WACC0.29
Cap/Depr(3y)210.28%
Cap/Depr(5y)175.27%
Cap/Sales(3y)92.25%
Cap/Sales(5y)76.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-111.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y135.7%
EPS Next 2Y50.17%
EPS Next 3Y34.51%
EPS Next 5Y26.58%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y4.45%
Revenue growth 5YN/A
Sales Q2Q%-7.72%
Revenue Next Year-2.37%
Revenue Next 2Y0.47%
Revenue Next 3Y1.7%
Revenue Next 5Y2.23%
EBIT growth 1Y9.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year265.73%
EBIT Next 3Y56.79%
EBIT Next 5Y32.31%
FCF growth 1Y61.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.53%
OCF growth 3Y9.39%
OCF growth 5YN/A
Apartment Income REIT Corp / AIRC FAQ
Can you provide the ChartMill fundamental rating for Apartment Income REIT Corp?
ChartMill assigns a fundamental rating of 3 / 10 to AIRC.
Can you provide the valuation status for Apartment Income REIT Corp?
ChartMill assigns a valuation rating of 2 / 10 to Apartment Income REIT Corp (AIRC). This can be considered as Overvalued.
What is the profitability of AIRC stock?
Apartment Income REIT Corp (AIRC) has a profitability rating of 6 / 10.
Can you provide the dividend sustainability for AIRC stock?
The dividend rating of Apartment Income REIT Corp (AIRC) is 3 / 10 and the dividend payout ratio is 41.31%.