ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
49.05 USD
+0.3 (+0.62%)
We assign a fundamental rating of 2 out of 10 to ARE. ARE was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and financial health of ARE have multiple concerns. ARE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
ARE had negative earnings in the past year.
In the past year ARE had a positive cash flow from operations.
ARE had positive earnings in each of the past 5 years.
In the past 5 years ARE always reported a positive cash flow from operatings.
1.2 Ratios
ARE has a worse Return On Assets (-1.13%) than 69.29% of its industry peers.
ARE's Return On Equity of -2.53% is on the low side compared to the rest of the industry. ARE is outperformed by 68.50% of its industry peers.
ARE has a worse Return On Invested Capital (1.71%) than 73.23% of its industry peers.
ARE had an Average Return On Invested Capital over the past 3 years of 1.88%. This is in line with the industry average of 3.06%.
| 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
In the last couple of years the Profit Margin of ARE has declined.
ARE has a Operating Margin (24.37%) which is in line with its industry peers.
ARE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 70.81%, ARE is in the better half of the industry, outperforming 62.99% of the companies in the same industry.
ARE's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
The number of shares outstanding for ARE remains at a similar level compared to 1 year ago.
The number of shares outstanding for ARE has been increased compared to 5 years ago.
The debt/assets ratio for ARE is higher compared to a year ago.
2.2 Solvency
ARE has a Debt/Equity ratio of 0.82. This is a neutral value indicating ARE is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.82, ARE is doing good in the industry, outperforming 71.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC4.92%
2.3 Liquidity
ARE has a Current Ratio of 0.41. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ARE (0.41) is worse than 83.46% of its industry peers.
ARE has a Quick Ratio of 0.41. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ARE (0.41) is worse than 82.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -250.61% in the last year.
The earnings per share for ARE have been decreasing by -10.24% on average. This is quite bad
The Revenue has been growing slightly by 0.18% in the past year.
Measured over the past years, ARE shows a quite strong growth in Revenue. The Revenue has been growing by 16.12% on average per year.
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
ARE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -53.14% yearly.
The Revenue is expected to decrease by -0.27% on average over the next years.
EPS Next Y-178.13%
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
EPS Next 5YN/A
Revenue Next Year-3.45%
Revenue Next 2Y-4.97%
Revenue Next 3Y-2.81%
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
ARE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 441.49 indicates a quite expensive valuation of ARE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (23.35), we can say ARE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 441.49 |
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 84.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.1 |
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 5.91%, which is a nice return.
The stock price of ARE dropped by -40.97% 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 6.43, ARE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
On average, the dividend of ARE grows each year by 6.07%, which is quite nice.
ARE has been paying a dividend for at least 10 years, so it has a reliable track record.
ARE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.07%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
The earnings of ARE are negative and hence is the payout ratio. ARE will probably not be able to sustain this dividend level.
DP-216.5%
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
NYSE:ARE (12/31/2025, 9:40:45 AM)
49.05
+0.3 (+0.62%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change2.82%
Ins Owners1.05%
Ins Owner Change-3.81%
Market Cap8.48B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target65.75 (34.05%)
Short Float %4.06%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-216.5%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-289.99%
Min EPS beat(2)-374.36%
Max EPS beat(2)-205.61%
EPS beat(4)0
Avg EPS beat(4)-207.84%
Min EPS beat(4)-374.36%
Max EPS beat(4)-110.31%
EPS beat(8)2
Avg EPS beat(8)-133.77%
EPS beat(12)2
Avg EPS beat(12)-106.58%
EPS beat(16)4
Avg EPS beat(16)-73.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)-0.07%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)1.53%
Revenue beat(16)10
Avg Revenue beat(16)10.24%
PT rev (1m)-19.81%
PT rev (3m)-33.23%
EPS NQ rev (1m)-44.49%
EPS NQ rev (3m)-47.94%
EPS NY rev (1m)-593.79%
EPS NY rev (3m)-515.67%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 441.49 | ||
| P/S | 2.66 | ||
| P/FCF | N/A | ||
| P/OCF | 6.16 | ||
| P/B | 0.51 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.11
Fwd EY0.23%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY16.23%
SpS18.44
BVpS96.28
TBVpS94.91
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.53% | ||
| ROCE | 2.16% | ||
| ROIC | 1.71% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 1.74% | ||
| OM | 24.37% | ||
| PM (TTM) | N/A | ||
| GM | 70.81% | ||
| FCFM | N/A |
ROA(3y)0.84%
ROA(5y)1.54%
ROE(3y)1.65%
ROE(5y)2.98%
ROIC(3y)1.88%
ROIC(5y)1.79%
ROICexc(3y)1.91%
ROICexc(5y)1.83%
ROICexgc(3y)1.93%
ROICexgc(5y)1.85%
ROCE(3y)2.37%
ROCE(5y)2.27%
ROICexgc growth 3Y14.19%
ROICexgc growth 5Y1.72%
ROICexc growth 3Y14.6%
ROICexc growth 5Y2.01%
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%
F-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.37 | ||
| Cap/Depr | 152.85% | ||
| Cap/Sales | 65.14% | ||
| Interest Coverage | 3.86 | ||
| Cash Conversion | 64.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | N/A |
F-Score4
WACC4.92%
ROIC/WACC0.35
Cap/Depr(3y)392.1%
Cap/Depr(5y)533.59%
Cap/Sales(3y)146.17%
Cap/Sales(5y)201.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-250.61%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-243.75%
EPS Next Y-178.13%
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
EPS Next 5YN/A
Revenue 1Y (TTM)0.18%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-3.07%
Revenue Next Year-3.45%
Revenue Next 2Y-4.97%
Revenue Next 3Y-2.81%
Revenue Next 5Y-0.27%
EBIT growth 1Y-17.17%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year181.06%
EBIT Next 3Y32.97%
EBIT Next 5Y30.13%
FCF growth 1Y73.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.17%
OCF growth 3Y14.2%
OCF growth 5Y17.08%
ALEXANDRIA REAL ESTATE EQUIT / ARE FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 2 / 10 to ARE.
Can you provide the valuation status for ALEXANDRIA REAL ESTATE EQUIT?
ChartMill assigns a valuation rating of 1 / 10 to ALEXANDRIA REAL ESTATE EQUIT (ARE). This can be considered as Overvalued.
What is the profitability of ARE stock?
ALEXANDRIA REAL ESTATE EQUIT (ARE) has a profitability rating of 3 / 10.
Can you provide the financial health for ARE stock?
The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.