ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
53.97 USD
+0.7 (+1.31%)
54 USD
+0.03 (+0.06%)
Overall ARE gets a fundamental rating of 2 out of 10. We evaluated ARE against 127 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.
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
ARE has a worse Return On Assets (-1.13%) than 68.50% of its industry peers.
Looking at the Return On Equity, with a value of -2.53%, ARE is doing worse than 67.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.71%, ARE is doing worse than 72.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARE 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.
With a Operating Margin value of 24.37%, ARE perfoms like the industry average, outperforming 53.54% 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's Gross Margin of 70.81% is fine compared to the rest of the industry. ARE outperforms 62.99% 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.
Compared to 5 years ago, ARE has more shares outstanding
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.
Looking at the Debt to Equity ratio, with a value of 0.82, ARE is in the better half of 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/WACC0.34
WACC5.01%
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.
Looking at the Current ratio, with a value of 0.41, ARE is doing worse than 82.68% of the companies in the same industry.
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 81.89% 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.
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 0.18% in the past year.
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
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
ARE is valuated quite expensively with a Price/Forward Earnings ratio of 485.78.
ARE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ARE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 485.78 |
4.2 Price Multiples
ARE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARE is cheaper than 83.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.41 |
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
With a Yearly Dividend Yield of 5.88%, ARE is a good candidate for dividend investing.
The stock price of ARE dropped by -26.99% 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.
ARE's Dividend Yield is comparable with the industry average which is at 6.83.
ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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
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%
53.97
+0.7 (+1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.93%
Inst Owner Change0%
Ins Owners0.88%
Ins Owner Change-3.82%
Market Cap9.33B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target65.75 (21.83%)
Short Float %4.06%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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)-19.81%
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 | 485.78 | ||
| P/S | 2.93 | ||
| P/FCF | N/A | ||
| P/OCF | 6.78 | ||
| P/B | 0.56 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.11
Fwd EY0.21%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY14.75%
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
WACC5.01%
ROIC/WACC0.34
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.