ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
59.69 USD
+1.6 (+2.75%)
59.69 USD
0 (0%)
ARE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. ARE may be in some trouble as it scores bad on both profitability and health. ARE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year ARE has reported negative net income.
- In the past year ARE had a positive cash flow from operations.
- Each year in the past 5 years ARE has been profitable.
- Each year in the past 5 years ARE had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -1.13%, ARE is not doing good in the industry: 68.80% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of -2.53%, ARE is doing worse than 68.00% of the companies in the same industry.
- The Return On Invested Capital of ARE (1.71%) is worse than 72.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARE is in line with the industry average of 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.53% | ||
| ROIC | 1.71% |
ROA(3y)0.84%
ROA(5y)1.54%
ROE(3y)1.65%
ROE(5y)2.98%
ROIC(3y)1.88%
ROIC(5y)1.79%
1.3 Margins
- ARE's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 24.37%, ARE is in line with its industry, outperforming 53.60% of the companies in the same industry.
- In the last couple of years the Operating Margin of ARE has remained more or less at the same level.
- ARE has a better Gross Margin (70.81%) than 63.20% of its industry peers.
- In the last couple of years the Gross Margin of ARE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.37% | ||
| PM (TTM) | N/A | ||
| GM | 70.81% |
OM growth 3Y6.37%
OM growth 5Y0.87%
PM growth 3Y-28.91%
PM growth 5Y-16.02%
GM growth 3Y0.65%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
- ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ARE has about the same amout of shares outstanding than it did 1 year ago.
- ARE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
- A Debt/Equity ratio of 0.82 indicates that ARE is somewhat dependend on debt financing.
- The Debt to Equity ratio of ARE (0.82) is better than 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC5.19%
2.3 Liquidity
- A Current Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
- ARE's Current ratio of 0.41 is on the low side compared to the rest of the industry. ARE is outperformed by 83.20% of its industry peers.
- A Quick Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.41, ARE is doing worse than 82.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -250.61%.
- The earnings per share for ARE have been decreasing by -10.24% on average. This is quite bad
- ARE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.18%.
- The Revenue has been growing by 16.12% on average over the past years. This is quite good.
EPS 1Y (TTM)-250.61%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-243.75%
Revenue 1Y (TTM)0.18%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-3.07%
3.2 Future
- Based on estimates for the next years, ARE will show a very negative growth in Earnings Per Share. The EPS will decrease by -53.14% on average per year.
- Based on estimates for the next years, ARE will show a decrease in Revenue. The Revenue will decrease by -0.27% on average per year.
EPS Next Y-178.13%
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
EPS Next 5YN/A
Revenue Next Year-3.49%
Revenue Next 2Y-5.81%
Revenue Next 3Y-3.95%
Revenue Next 5Y-0.27%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 537.26 indicates a quite expensive valuation of ARE.
- ARE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARE is more expensive than 60.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ARE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 537.26 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 81.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
- A cheap valuation may be justified as ARE's earnings are expected to decrease with -53.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
5. Dividend
5.1 Amount
- ARE has a Yearly Dividend Yield of 5.03%, which is a nice return.
- The stock price of ARE dropped by -22.89% 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 6.59, ARE has a dividend in line with its industry peers.
- ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
- The dividend of ARE is nicely growing with an annual growth rate of 6.07%!
- ARE has paid a dividend for at least 10 years, which is a reliable track record.
- ARE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.07%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
- ARE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-216.5%
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
ALEXANDRIA REAL ESTATE EQUIT / ARE FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 2 / 10 to ARE.
What is the valuation status of ALEXANDRIA REAL ESTATE EQUIT (ARE) stock?
ChartMill assigns a valuation rating of 1 / 10 to ALEXANDRIA REAL ESTATE EQUIT (ARE). This can be considered as Overvalued.
Can you provide the profitability details for ALEXANDRIA REAL ESTATE EQUIT?
ALEXANDRIA REAL ESTATE EQUIT (ARE) has a profitability rating of 3 / 10.
How financially healthy is ALEXANDRIA REAL ESTATE EQUIT?
The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.