ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
57.89 USD
+0.63 (+1.1%)
57.95 USD
+0.06 (+0.1%)
ARE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 126 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
- ARE had negative earnings in the past year.
- ARE had a positive operating cash flow in the past year.
- 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
- The Return On Assets of ARE (-1.13%) is worse than 68.25% of its industry peers.
- ARE has a Return On Equity of -2.53%. This is in the lower half of the industry: ARE underperforms 67.46% of its industry peers.
- ARE has a Return On Invested Capital of 1.71%. This is in the lower half of the industry: ARE underperforms 72.22% 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
- ARE's Profit Margin has declined in the last couple of years.
- ARE has a Operating Margin of 24.37%. This is comparable to the rest of the industry: ARE outperforms 53.97% of its industry peers.
- 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 63.49% of its industry peers.
- 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.
- ARE has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ARE has more shares outstanding
- ARE has a worse debt/assets ratio than last year.
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.
- ARE has a better Debt to Equity ratio (0.82) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC5.1%
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 82.54% of its industry peers.
- A Quick Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
- ARE has a Quick ratio of 0.41. This is amonst the worse of the industry: ARE underperforms 81.75% 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.
- Measured over the past years, ARE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.24% on average per year.
- ARE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.18%.
- 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.
- 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.
- The Price/Forward Earnings ratio is 521.06, which means the current valuation is very expensive for ARE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE is on the same level as its industry peers.
- 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 | 521.06 |
4.2 Price Multiples
- 80.95% 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 | 10.73 |
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 5.41%, which is a nice return.
- In the last 3 months the price of ARE has falen by -22.80%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 6.86, 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 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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 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-216.5%
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
57.89
+0.63 (+1.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)01-26 2026-01-26/amc
Inst Owners97.93%
Inst Owner Change0.15%
Ins Owners0.88%
Ins Owner Change7.97%
Market Cap10.01B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target65.75 (13.58%)
Short Float %4.06%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-216.5%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
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)-7.51%
PT rev (3m)-33.43%
EPS NQ rev (1m)-44.49%
EPS NQ rev (3m)-47.94%
EPS NY rev (1m)-614.1%
EPS NY rev (3m)-515.67%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 521.06 | ||
| P/S | 3.14 | ||
| P/FCF | N/A | ||
| P/OCF | 7.27 | ||
| P/B | 0.6 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.11
Fwd EY0.19%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY13.75%
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
WACC5.1%
ROIC/WACC0.33
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.
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.