ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
58.45 USD
+0.93 (+1.62%)
58.45 USD
0 (0%)
ARE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. Both the profitability and financial health of ARE have multiple concerns. 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.
- ARE had a positive operating cash flow in the past year.
- 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 Return On Assets of -1.13%. This is in the lower half of the industry: ARE underperforms 68.80% of its industry peers.
- Looking at the Return On Equity, with a value of -2.53%, ARE is doing worse than 68.00% of the companies in the same industry.
- 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 72.00% 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 3.07%.
| 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
- ARE's Profit Margin has declined in the last couple of years.
- ARE's Operating Margin of 24.37% is in line compared to the rest of the industry. ARE outperforms 53.60% of its industry peers.
- ARE's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 70.81%, ARE is doing good in the industry, outperforming 63.20% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
- The number of shares outstanding for ARE remains at a similar level compared to 1 year ago.
- 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
- A Debt/Equity ratio of 0.82 indicates that ARE is somewhat dependend on debt financing.
- ARE has a Debt to Equity ratio of 0.82. This is in the better half of the industry: ARE outperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC5.2%
2.3 Liquidity
- A Current Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
- ARE has a Current ratio of 0.41. This is amonst the worse of the industry: ARE underperforms 82.40% 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.
- ARE has a worse Quick ratio (0.41) than 81.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -250.61%.
- 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.
- ARE shows a small growth in Revenue. In the last year, the Revenue has grown by 0.18%.
- 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)-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-3.49%
Revenue Next 2Y-5.81%
Revenue Next 3Y-3.95%
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.
- A Price/Forward Earnings ratio of 526.10 indicates a quite expensive valuation of ARE.
- Based on the Price/Forward Earnings ratio, ARE is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- ARE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 526.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARE is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
- ARE's earnings are expected to decrease with -53.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-75.16%
EPS Next 3Y-53.14%
5. Dividend
5.1 Amount
- ARE has a Yearly Dividend Yield of 5.03%, which is a nice return.
- In the last 3 months the price of ARE has falen by -24.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 6.59, ARE has a dividend in line with its industry peers.
- ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
- The dividend of ARE is nicely growing with an annual growth rate of 6.07%!
- 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
- 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%
58.45
+0.93 (+1.62%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)01-26 2026-01-26/amc
Inst Owners97.93%
Inst Owner Change-0.55%
Ins Owners0.88%
Ins Owner Change14.44%
Market Cap10.10B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target63.39 (8.45%)
Short Float %5.32%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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)-10.83%
PT rev (3m)-35.82%
EPS NQ rev (1m)-44.66%
EPS NQ rev (3m)-46.15%
EPS NY rev (1m)-614.1%
EPS NY rev (3m)-515.67%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 526.1 | ||
| P/S | 3.17 | ||
| P/FCF | N/A | ||
| P/OCF | 7.34 | ||
| P/B | 0.61 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.11
Fwd EY0.19%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY13.62%
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
WACC5.2%
ROIC/WACC0.33
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-3.49%
Revenue Next 2Y-5.81%
Revenue Next 3Y-3.95%
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.