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Apartment Income REIT Corp (AIRC) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:AIRC - US03750L1098 - REIT

39.08 USD
-0.01 (-0.03%)
Last: 6/27/2024, 8:04:00 PM
39.09 USD
+0.01 (+0.03%)
After Hours: 6/27/2024, 8:04:00 PM
Fundamental Rating

3

Overall AIRC gets a fundamental rating of 3 out of 10. We evaluated AIRC against 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.


Dividend Valuation Growth Profitability Health

6

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.
  • In the past 5 years AIRC always reported a positive cash flow from operatings.
AIRC Yearly Net Income VS EBIT VS OCF VS FCFAIRC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 500M -500M

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.
  • With an excellent Return On Equity value of 28.05%, AIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • AIRC's Return On Invested Capital of 1.97% is in line compared to the rest of the industry. AIRC outperforms 42.86% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital 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 RankSector 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
AIRC Yearly ROA, ROE, ROICAIRC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 79.54%, AIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • 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.
  • AIRC's Gross Margin has been stable in the last couple of years.
Industry RankSector 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
AIRC Yearly Profit, Operating, Gross MarginsAIRC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 40 60 80 100

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1

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.
  • The number of shares outstanding for AIRC has been reduced compared to 1 year ago.
  • The debt/assets ratio for AIRC has been reduced compared to a year ago.
AIRC Yearly Shares OutstandingAIRC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M
AIRC Yearly Total Debt VS Total AssetsAIRC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2B 4B 6B

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's Altman-Z score of 0.80 is in line compared to the rest of the industry. AIRC outperforms 42.86% of its industry peers.
  • AIRC has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.47, AIRC is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.47
Debt/FCF N/A
Altman-Z 0.8
ROIC/WACC0.29
WACC6.73%
AIRC Yearly LT Debt VS Equity VS FCFAIRC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.29 indicates that AIRC may have some problems paying its short term obligations.
  • The Current ratio of AIRC (0.29) is worse than 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's Quick ratio of 0.29 is on the low side compared to the rest of the industry. AIRC is outperformed by 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 0.29
Quick Ratio 0.29
AIRC Yearly Current Assets VS Current LiabilitesAIRC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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3

3. Growth

3.1 Past

  • AIRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -111.01%.
  • AIRC shows a decrease in Revenue. In the last year, the revenue decreased by -0.05%.
  • Measured over the past years, AIRC shows a small growth in Revenue. The Revenue has been growing by 4.45% on average per year.
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

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AIRC Yearly Revenue VS EstimatesAIRC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M 800M
AIRC Yearly EPS VS EstimatesAIRC Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 2 3

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4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for AIRC. In the last year negative earnings were reported.
  • The Price/Forward Earnings ratio is 383.14, which means the current valuation is very expensive for AIRC.
  • Based on the Price/Forward Earnings ratio, AIRC is valued a bit more expensive than 61.90% of the companies in the same industry.
  • AIRC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.95.
Industry RankSector Rank
PE N/A
Fwd PE 383.14
AIRC Price Earnings VS Forward Price EarningsAIRC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 -100 200 300

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 RankSector Rank
P/FCF N/A
EV/EBITDA 18.86
AIRC Per share dataAIRC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIRC does not grow enough to justify the current Price/Earnings ratio.
  • 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%

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3

5. Dividend

5.1 Amount

  • AIRC has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
  • AIRC's Dividend Yield is comparable with the industry average which is at 32.02.
  • AIRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector 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
AIRC Yearly Dividends per shareAIRC Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.5 1 1.5

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%
AIRC Yearly Income VS Free CF VS DividendAIRC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 0 500M -500M
AIRC Dividend Payout.AIRC Dividend Payout, showing the Payout Ratio.AIRC Dividend Payout.PayoutRetained Earnings

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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.


What is the valuation status of Apartment Income REIT Corp (AIRC) stock?

ChartMill assigns a valuation rating of 2 / 10 to Apartment Income REIT Corp (AIRC). This can be considered as Overvalued.


Can you provide the profitability details for Apartment Income REIT Corp?

Apartment Income REIT Corp (AIRC) has a profitability rating of 6 / 10.


What is the earnings growth outlook for Apartment Income REIT Corp?

The Earnings per Share (EPS) of Apartment Income REIT Corp (AIRC) is expected to grow by 135.7% in the next year.


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%.