ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
NYSE:ARE - New York Stock Exchange, Inc. - US0152711091 - REIT - Currency: USD
ARE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARE had positive earnings in the past year.
ARE had a positive operating cash flow in the past year.
ARE had positive earnings in each of the past 5 years.
In the past 5 years ARE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.82%, ARE perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
ARE has a Return On Equity (1.73%) which is comparable to the rest of the industry.
The Return On Invested Capital of ARE (2.11%) is worse than 66.40% of its industry peers.
ARE had an Average Return On Invested Capital over the past 3 years of 1.86%. This is in line with the industry average of 3.13%.
The 3 year average ROIC (1.86%) for ARE is below the current ROIC(2.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.73% | ||
| ROIC | 2.11% |
ROA(3y)0.84%
ROA(5y)1.54%
ROE(3y)1.65%
ROE(5y)2.98%
ROIC(3y)1.86%
ROIC(5y)1.79%
1.3 Margins
ARE has a Profit Margin (9.57%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ARE has declined.
ARE's Operating Margin of 29.49% is fine compared to the rest of the industry. ARE outperforms 64.80% of its industry peers.
ARE's Operating Margin has been stable in the last couple of years.
The Gross Margin of ARE (71.88%) is better than 64.00% 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 | 29.49% | ||
| PM (TTM) | 9.57% | ||
| GM | 71.88% |
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.
Compared to 1 year ago, ARE has about the same amount of shares outstanding.
The number of shares outstanding for ARE has been increased compared to 5 years ago.
ARE has a worse debt/assets ratio than last year.
2.2 Solvency
ARE has a Debt/Equity ratio of 0.68. This is a neutral value indicating ARE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, ARE is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.36
WACC5.91%
2.3 Liquidity
A Current Ratio of 0.32 indicates that ARE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.32, ARE is doing worse than 92.00% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that ARE may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, ARE is not doing good in the industry: 90.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 233.33% over the past 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.
ARE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.01%.
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)233.33%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%29.63%
Revenue 1Y (TTM)9.01%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%2.78%
3.2 Future
Based on estimates for the next years, ARE will show a very strong growth in Earnings Per Share. The EPS will grow by 56.41% on average per year.
The Revenue is expected to grow by 4.97% on average over the next years.
EPS Next Y137.07%
EPS Next 2Y56.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.09%
Revenue Next 2Y1.54%
Revenue Next 3Y4.97%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 56.07, the valuation of ARE can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ARE.
When comparing the Price/Earnings ratio of ARE to the average of the S&P500 Index (29.43), we can say ARE is valued expensively.
Based on the Price/Forward Earnings ratio of 23.65, the valuation of ARE can be described as rather expensive.
ARE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARE is cheaper than 85.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (22.65), we can say ARE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.07 | ||
| Fwd PE | 23.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.23 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 56.41% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y56.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.53%, ARE is a good candidate for dividend investing.
ARE's Dividend Yield is comparable with the industry average which is at 18.33.
Compared to an average S&P500 Dividend Yield of 2.27, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.07%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
290.27% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
The dividend of ARE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP290.27%
EPS Next 2Y56.41%
EPS Next 3YN/A
100.93
+3.75 (+3.86%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change-83.32%
Ins Owners1.06%
Ins Owner Change4.7%
Market Cap17.47B
Analysts72.94
Price Target120.62 (19.51%)
Short Float %1.58%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP290.27%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-67.5%
Min EPS beat(2)-141.07%
Max EPS beat(2)6.08%
EPS beat(4)2
Avg EPS beat(4)-46.21%
Min EPS beat(4)-141.07%
Max EPS beat(4)19.3%
EPS beat(8)2
Avg EPS beat(8)-66.65%
EPS beat(12)4
Avg EPS beat(12)-37.98%
EPS beat(16)6
Avg EPS beat(16)-16.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)0.76%
Revenue beat(8)5
Avg Revenue beat(8)0.69%
Revenue beat(12)9
Avg Revenue beat(12)11.19%
Revenue beat(16)13
Avg Revenue beat(16)15.03%
PT rev (1m)-1.9%
PT rev (3m)-8.5%
EPS NQ rev (1m)17.39%
EPS NQ rev (3m)26.56%
EPS NY rev (1m)27.8%
EPS NY rev (3m)22.89%
Revenue NQ rev (1m)-2.81%
Revenue NQ rev (3m)-10.08%
Revenue NY rev (1m)-1.21%
Revenue NY rev (3m)-3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.07 | ||
| Fwd PE | 23.65 | ||
| P/S | 5.4 | ||
| P/FCF | N/A | ||
| P/OCF | 11.61 | ||
| P/B | 0.98 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 13.23 |
EPS(TTM)1.8
EY1.78%
EPS(NY)4.27
Fwd EY4.23%
FCF(TTM)-6.74
FCFYN/A
OCF(TTM)8.69
OCFY8.61%
SpS18.68
BVpS103.35
TBVpS101.59
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.73% | ||
| ROCE | 2.67% | ||
| ROIC | 2.11% | ||
| ROICexc | 2.14% | ||
| ROICexgc | 2.15% | ||
| OM | 29.49% | ||
| PM (TTM) | 9.57% | ||
| GM | 71.88% | ||
| FCFM | N/A |
ROA(3y)0.84%
ROA(5y)1.54%
ROE(3y)1.65%
ROE(5y)2.98%
ROIC(3y)1.86%
ROIC(5y)1.79%
ROICexc(3y)1.9%
ROICexc(5y)1.82%
ROICexgc(3y)1.92%
ROICexgc(5y)1.84%
ROCE(3y)2.36%
ROCE(5y)2.26%
ROICexcg growth 3Y13.53%
ROICexcg growth 5Y1.37%
ROICexc growth 3Y13.94%
ROICexc growth 5Y1.66%
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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.68 | ||
| Cap/Depr | 222.17% | ||
| Cap/Sales | 82.61% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 69.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | N/A |
F-Score7
WACC5.91%
ROIC/WACC0.36
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)233.33%
EPS 3Y-21.98%
EPS 5Y-10.24%
EPS Q2Q%29.63%
EPS Next Y137.07%
EPS Next 2Y56.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.01%
Revenue growth 3Y15.22%
Revenue growth 5Y16.12%
Sales Q2Q%2.78%
Revenue Next Year-1.09%
Revenue Next 2Y1.54%
Revenue Next 3Y4.97%
Revenue Next 5YN/A
EBIT growth 1Y17.1%
EBIT growth 3Y22.56%
EBIT growth 5Y17.14%
EBIT Next Year182.49%
EBIT Next 3Y49.86%
EBIT Next 5YN/A
FCF growth 1Y43.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.73%
OCF growth 3Y14.2%
OCF growth 5Y17.08%