ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - NYSE:ARE - US0152711091 - REIT
87.45 USD
+2.31 (+2.71%)
87.45 USD
0 (0%)
Overall ARE gets a fundamental rating of 3 out of 10. We evaluated ARE against 130 industry peers in the Diversified REITs industry. There are concerns on the financial health of ARE while its profitability can be described as average. ARE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ARE has reported negative net income.
ARE had a positive operating cash flow in the past year.
ARE had positive earnings in each of the past 5 years.
Each year in the past 5 years ARE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.06%, ARE is in line with its industry, outperforming 42.31% of the companies in the same industry.
ARE has a Return On Equity (-0.12%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.83%, ARE is doing worse than 68.46% of the companies in the same industry.
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 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.12% | ||
| ROIC | 1.83% |
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.
The Operating Margin of ARE (26.20%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARE has remained more or less at the same level.
ARE has a Gross Margin of 71.25%. This is in the better half of the industry: ARE outperforms 64.62% of its industry peers.
ARE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.2% | ||
| PM (TTM) | N/A | ||
| GM | 71.25% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE 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
ARE has a Debt/Equity ratio of 0.77. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE's Debt to Equity ratio of 0.77 is fine compared to the rest of the industry. ARE outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.32
WACC5.66%
2.3 Liquidity
ARE has a Current Ratio of 0.40. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
ARE's Current ratio of 0.40 is on the low side compared to the rest of the industry. ARE is outperformed by 83.08% of its industry peers.
A Quick Ratio of 0.40 indicates that ARE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.40, ARE is doing worse than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -116.05%.
ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
ARE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.52%.
The Revenue has been growing by 16.12% on average over the past years. This is quite good.
EPS 1Y (TTM)-116.05%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-356%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
3.2 Future
Based on estimates for the next years, ARE will show a decrease in Earnings Per Share. The EPS will decrease by -7.62% on average per year.
ARE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.48% yearly.
EPS Next Y-32.95%
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
EPS Next 5YN/A
Revenue Next Year-3.9%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.91%
Revenue Next 5Y1.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ARE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 46.49, ARE can be considered very expensive at the moment.
61.54% of the companies in the same industry are more expensive than ARE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, ARE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 46.49 |
4.2 Price Multiples
71.54% of the companies in the same industry are more expensive than ARE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
A cheap valuation may be justified as ARE's earnings are expected to decrease with -7.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 6.23%, which is a nice return.
Compared to an average industry Dividend Yield of 6.66, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
5.2 History
The dividend of ARE is nicely growing with an annual growth rate of 6.07%!
ARE has been paying a dividend for at least 10 years, so it has 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
The earnings of ARE are negative and hence is the payout ratio. ARE will probably not be able to sustain this dividend level.
DP-4249.31%
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
87.45
+2.31 (+2.71%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.86%
Inst Owner Change-2.02%
Ins Owners1.1%
Ins Owner Change2.73%
Market Cap15.13B
Analysts72.94
Price Target98.48 (12.61%)
Short Float %4.33%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-4249.31%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-157.96%
Min EPS beat(2)-205.61%
Max EPS beat(2)-110.31%
EPS beat(4)1
Avg EPS beat(4)-112.73%
Min EPS beat(4)-205.61%
Max EPS beat(4)6.08%
EPS beat(8)2
Avg EPS beat(8)-98.07%
EPS beat(12)3
Avg EPS beat(12)-57.99%
EPS beat(16)5
Avg EPS beat(16)-49.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-2.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)7
Avg Revenue beat(12)4.6%
Revenue beat(16)11
Avg Revenue beat(16)11.67%
PT rev (1m)-2.66%
PT rev (3m)-8.27%
EPS NQ rev (1m)-5.8%
EPS NQ rev (3m)-15.19%
EPS NY rev (1m)-39.65%
EPS NY rev (3m)-33.61%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 46.49 | ||
| P/S | 4.7 | ||
| P/FCF | N/A | ||
| P/OCF | 10.65 | ||
| P/B | 0.88 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)-0.13
EYN/A
EPS(NY)1.88
Fwd EY2.15%
FCF(TTM)-5.15
FCFYN/A
OCF(TTM)8.21
OCFY9.39%
SpS18.59
BVpS99.3
TBVpS97.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.12% | ||
| ROCE | 2.32% | ||
| ROIC | 1.83% | ||
| ROICexc | 1.86% | ||
| ROICexgc | 1.87% | ||
| OM | 26.2% | ||
| PM (TTM) | N/A | ||
| GM | 71.25% | ||
| 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%
ROICexcg growth 3Y14.19%
ROICexcg 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 | 0.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 176.03% | ||
| Cap/Sales | 71.84% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 65.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | N/A |
F-Score4
WACC5.66%
ROIC/WACC0.32
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)-116.05%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-356%
EPS Next Y-32.95%
EPS Next 2Y2.23%
EPS Next 3Y-7.62%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
Revenue Next Year-3.9%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.91%
Revenue Next 5Y1.48%
EBIT growth 1Y-6.46%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year186.77%
EBIT Next 3Y44.32%
EBIT Next 5Y33.42%
FCF growth 1Y71.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.3%
OCF growth 3Y14.2%
OCF growth 5Y17.08%