Apartment Income REIT Corp (AIRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIRC - US03750L1098 - REIT
39.08 USD
-0.01 (-0.03%)
39.09 USD
+0.01 (+0.03%)
Taking everything into account, AIRC scores 3 out of 10 in our fundamental rating. AIRC was compared to 20 industry peers in the Residential REITs industry. AIRC has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIRC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AIRC has reported negative net income.
AIRC had a positive operating cash flow in the past year.
Of the past 5 years AIRC 4 years were profitable.
AIRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AIRC has a better Return On Assets (10.32%) than 100.00% of its industry peers.
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 3 year average ROIC (1.72%) for AIRC is below the current ROIC(1.97%), indicating increased profibility in the last year.
| 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
AIRC has a better Profit Margin (79.54%) than 100.00% of its industry peers.
AIRC has a Operating Margin of 18.28%. This is comparable to the rest of the industry: AIRC outperforms 52.38% of its industry peers.
Looking at the Gross Margin, with a value of 66.63%, AIRC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIRC is destroying value.
AIRC has less shares outstanding than it did 1 year ago.
The debt/assets ratio for AIRC has been reduced compared to a year ago.
2.2 Solvency
AIRC has an Altman-Z score of 0.80. This is a bad value and indicates that AIRC is not financially healthy and even has some risk of bankruptcy.
AIRC has a Altman-Z score (0.80) which is in line with its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that AIRC has dependencies on debt financing.
AIRC has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: AIRC underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.8 |
ROIC/WACC0.29
WACC6.73%
2.3 Liquidity
AIRC has a Current Ratio of 0.29. This is a bad value and indicates that AIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
AIRC's Current ratio of 0.29 is on the low side compared to the rest of the industry. AIRC is outperformed by 66.67% of its industry peers.
AIRC has a Quick Ratio of 0.29. This is a bad value and indicates that AIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
AIRC has a worse Quick ratio (0.29) 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.
The Revenue has decreased by -0.05% in the past year.
AIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.45% yearly.
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
Based on estimates for the next years, AIRC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.58% on average per year.
The Revenue is expected to grow by 2.23% on average over the next years.
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.
AIRC is valuated quite expensively with a Price/Forward Earnings ratio of 383.14.
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.
AIRC is valuated expensively when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 383.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIRC is on the same level as its industry peers.
| 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.
The decent profitability rating of AIRC may justify a higher PE ratio.
AIRC's earnings are expected to grow with 34.51% in the coming years. This may justify a more expensive valuation.
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 7.26.
Compared to an average S&P500 Dividend Yield of 2.31, AIRC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
AIRC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
AIRC pays out 41.31% of its income as dividend. 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%.