ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
NYSE:ARE - New York Stock Exchange, Inc. - US0152711091 - REIT - Currency: USD
Taking everything into account, ARE scores 3 out of 10 in our fundamental rating. ARE was compared to 129 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 is quite expensive at the moment. It does show a decent growth rate. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARE was profitable.
In the past year ARE had a positive cash flow from operations.
In the past 5 years ARE has always been profitable.
ARE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.35%, ARE perfoms like the industry average, outperforming 44.96% of the companies in the same industry.
ARE has a Return On Equity (0.75%) which is in line with its industry peers.
ARE has a worse Return On Invested Capital (1.99%) than 66.67% 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 3.15%.
The last Return On Invested Capital (1.99%) for ARE is above the 3 year average (1.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.75% | ||
| ROIC | 1.99% |
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 has a Profit Margin of 4.07%. This is comparable to the rest of the industry: ARE outperforms 50.39% of its industry peers.
ARE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.83%, ARE is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
ARE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 71.54%, ARE is in the better half of the industry, outperforming 65.12% 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 | 27.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 71.54% |
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.
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 0.72. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE's Debt to Equity ratio of 0.72 is fine compared to the rest of the industry. ARE outperforms 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC5.7%
2.3 Liquidity
ARE has a Current Ratio of 0.24. 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 0.24 is on the low side compared to the rest of the industry. ARE is outperformed by 87.60% of its industry peers.
ARE has a Quick Ratio of 0.24. This is a bad value and indicates that ARE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.24, ARE is not doing good in the industry: 86.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -28.97% in the last year.
ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
The Revenue has been growing slightly by 5.93% 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)-28.97%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-107.22%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-1.64%
3.2 Future
The Earnings Per Share is expected to grow by 0.33% on average over the next years.
ARE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.20% yearly.
EPS Next Y6.05%
EPS Next 2Y16.87%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year-2.33%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
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
A Price/Earnings ratio of 101.34 indicates a quite expensive valuation of ARE.
ARE's Price/Earnings ratio is a bit more expensive when compared to the industry. ARE is more expensive than 60.47% of the companies in the same industry.
ARE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 31.33 indicates a quite expensive valuation of ARE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a somewhat cheap valuation: ARE is cheaper than 74.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ARE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.34 | ||
| Fwd PE | 31.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a somewhat cheap valuation: ARE is cheaper than 69.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)16.75
PEG (5Y)N/A
EPS Next 2Y16.87%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 6.86%, which is a nice return.
Compared to an average industry Dividend Yield of 6.43, ARE pays a bit more dividend than its industry peers.
ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
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
691.78% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
ARE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP691.78%
EPS Next 2Y16.87%
EPS Next 3Y0.33%
77.02
+1.98 (+2.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.64%
Inst Owner Change0.01%
Ins Owners1.1%
Ins Owner Change7.2%
Market Cap13.32B
Analysts72.22
Price Target99.45 (29.12%)
Short Float %3.72%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP691.78%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-125.69%
Min EPS beat(2)-141.07%
Max EPS beat(2)-110.31%
EPS beat(4)1
Avg EPS beat(4)-78.61%
Min EPS beat(4)-141.07%
Max EPS beat(4)6.08%
EPS beat(8)2
Avg EPS beat(8)-74.93%
EPS beat(12)4
Avg EPS beat(12)-28.32%
EPS beat(16)6
Avg EPS beat(16)-17.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)-2.09%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)0.18%
Revenue beat(8)4
Avg Revenue beat(8)-0.7%
Revenue beat(12)8
Avg Revenue beat(12)8.1%
Revenue beat(16)12
Avg Revenue beat(16)13.26%
PT rev (1m)-8.81%
PT rev (3m)-16.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.83%
EPS NY rev (1m)5%
EPS NY rev (3m)-41.74%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.34 | ||
| Fwd PE | 31.33 | ||
| P/S | 4.13 | ||
| P/FCF | N/A | ||
| P/OCF | 9.72 | ||
| P/B | 0.76 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)0.76
EY0.99%
EPS(NY)2.46
Fwd EY3.19%
FCF(TTM)-6.12
FCFYN/A
OCF(TTM)7.93
OCFY10.29%
SpS18.63
BVpS100.96
TBVpS99.34
PEG (NY)16.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.75% | ||
| ROCE | 2.52% | ||
| ROIC | 1.99% | ||
| ROICexc | 2.02% | ||
| ROICexgc | 2.03% | ||
| OM | 27.83% | ||
| PM (TTM) | 4.07% | ||
| GM | 71.54% | ||
| 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-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 193.33% | ||
| Cap/Sales | 75.39% | ||
| Interest Coverage | 5.64 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | N/A |
F-Score5
WACC5.7%
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)-28.97%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-107.22%
EPS Next Y6.05%
EPS Next 2Y16.87%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)5.93%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-1.64%
Revenue Next Year-2.33%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.2%
EBIT growth 1Y4.51%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year177.35%
EBIT Next 3Y42.24%
EBIT Next 5Y33.84%
FCF growth 1Y67.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.66%
OCF growth 3Y14.2%
OCF growth 5Y17.08%