ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
49.47 USD
+0.3 (+0.61%)
49.3 USD
-0.17 (-0.34%)
Taking everything into account, ARE scores 2 out of 10 in our fundamental rating. ARE was compared to 127 industry peers in the Diversified REITs industry. ARE may be in some trouble as it scores bad on both profitability and health. ARE is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years ARE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.13%, ARE is not doing good in the industry: 69.29% of the companies in the same industry are doing better.
The Return On Equity of ARE (-2.53%) is worse than 68.50% of its industry peers.
ARE's Return On Invested Capital of 1.71% is on the low side compared to the rest of the industry. ARE is outperformed by 73.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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.
The Gross Margin of ARE (70.81%) is better than 62.99% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, ARE has a worse debt to assets ratio.
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.
With a decent Debt to Equity ratio value of 0.82, ARE is doing good in 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/WACC0.35
WACC4.92%
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 83.46% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.41, ARE is doing worse than 82.68% of the companies in the same industry.
| 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.
Looking at the last year, ARE shows a small growth in Revenue. The Revenue has grown by 0.18% in the last year.
ARE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.12% yearly.
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
The Earnings Per Share is expected to decrease by -53.14% on average over the next years. This is quite bad
Based on estimates for the next years, ARE will show a decrease in Revenue. The Revenue will decrease by -0.27% on average per year.
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.
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.
The Price/Forward Earnings ratio is 445.27, which means the current valuation is very expensive for ARE.
ARE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, ARE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 445.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued cheaply inside the industry as 84.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.1 |
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 5.91%, ARE is a good candidate for dividend investing.
The stock price of ARE dropped by -40.97% 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 6.43.
ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
On average, the dividend of ARE grows each year by 6.07%, which is quite nice.
ARE has paid a dividend for at least 10 years, which is a reliable track record.
ARE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
49.47
+0.3 (+0.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change2.82%
Ins Owners1.05%
Ins Owner Change-3.81%
Market Cap8.55B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target65.75 (32.91%)
Short Float %4.06%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend5.22
Dividend Growth(5Y)6.07%
DP-216.5%
Div Incr Years14
Div Non Decr Years14
Ex-Date
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)-33.23%
EPS NQ rev (1m)-44.49%
EPS NQ rev (3m)-47.94%
EPS NY rev (1m)-593.79%
EPS NY rev (3m)-515.67%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 445.27 | ||
| P/S | 2.68 | ||
| P/FCF | N/A | ||
| P/OCF | 6.21 | ||
| P/B | 0.51 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.11
Fwd EY0.22%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY16.09%
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
WACC4.92%
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)-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.
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 3 / 10.
Can you provide the financial health for ARE stock?
The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.