ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - NYSE:ARE - US0152711091 - REIT
77.87 USD
+0.46 (+0.59%)
72.91 USD
-4.96 (-6.37%)
Taking everything into account, ARE scores 3 out of 10 in our fundamental rating. ARE was compared to 127 industry peers in the Diversified REITs industry. ARE has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARE is valued expensive and it does not seem to be growing. ARE also has an excellent dividend rating.
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.
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
ARE's Return On Assets of -0.06% is in line compared to the rest of the industry. ARE outperforms 40.94% of its industry peers.
ARE has a Return On Equity of -0.12%. This is comparable to the rest of the industry: ARE outperforms 40.94% of its industry peers.
The Return On Invested Capital of ARE (1.83%) is worse than 69.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARE is in line with the industry average of 3.04%.
| 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
ARE's Profit Margin has declined in the last couple of years.
ARE has a Operating Margin (26.20%) which is comparable to the rest of the industry.
ARE's Operating Margin has been stable in the last couple of years.
The Gross Margin of ARE (71.25%) is better than 63.78% 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
ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARE has about the same amount of shares outstanding.
ARE has more shares outstanding than it did 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 0.77. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE has a Debt to Equity ratio of 0.77. This is in the better half of the industry: ARE outperforms 72.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC5.32%
2.3 Liquidity
A Current Ratio of 0.40 indicates that ARE may have some problems paying its short term obligations.
ARE has a worse Current ratio (0.40) than 82.68% of its industry peers.
ARE has a Quick 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 Quick ratio of 0.40 is on the low side compared to the rest of the industry. ARE is outperformed by 81.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -116.05% 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.
The Revenue has been growing slightly by 3.52% 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)-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
ARE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -19.68% yearly.
Based on estimates for the next years, ARE will show a small growth in Revenue. The Revenue will grow by 1.58% on average per year.
EPS Next Y-84.18%
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
EPS Next 5YN/A
Revenue Next Year-3.45%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.95%
Revenue Next 5Y1.58%
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.
With a Price/Forward Earnings ratio of 69.71, ARE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE is on the same level as its industry peers.
ARE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit cheaper than 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.14 |
4.3 Compensation for Growth
ARE's earnings are expected to decrease with -19.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 6.87%, which is a nice return.
Compared to an average industry Dividend Yield of 6.15, 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
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-4249.31%
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
77.87
+0.46 (+0.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.62%
Inst Owner Change0.25%
Ins Owners1.09%
Ins Owner Change-0.66%
Market Cap13.47B
Revenue(TTM)3.22B
Net Income(TTM)-21458000
Analysts72.63
Price Target98.77 (26.84%)
Short Float %2.76%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
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)0.3%
PT rev (3m)-2.64%
EPS NQ rev (1m)-5.59%
EPS NQ rev (3m)-20.32%
EPS NY rev (1m)-15.82%
EPS NY rev (3m)-85.76%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.71 | ||
| P/S | 4.19 | ||
| P/FCF | N/A | ||
| P/OCF | 9.49 | ||
| P/B | 0.78 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 12.14 |
EPS(TTM)-0.13
EYN/A
EPS(NY)1.12
Fwd EY1.43%
FCF(TTM)-5.15
FCFYN/A
OCF(TTM)8.21
OCFY10.54%
SpS18.59
BVpS99.3
TBVpS97.83
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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%
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 | 0.77 | ||
| 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
WACC5.32%
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)-116.05%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%-356%
EPS Next Y-84.18%
EPS Next 2Y-21.22%
EPS Next 3Y-19.68%
EPS Next 5YN/A
Revenue 1Y (TTM)3.52%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%-2.37%
Revenue Next Year-3.45%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.95%
Revenue Next 5Y1.58%
EBIT growth 1Y-6.46%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year188.76%
EBIT Next 3Y43.43%
EBIT Next 5Y32.89%
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%
ALEXANDRIA REAL ESTATE EQUIT / ARE FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 3 / 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 4 / 10.
Can you provide the financial health for ARE stock?
The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.