Taking everything into account, ARE scores 2 out of 10 in our fundamental rating. ARE was compared to 124 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years ARE 4 years were 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 -4.22%, ARE is not doing good in the industry: 79.84% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -9.30%, ARE is doing worse than 73.39% of the companies in the same industry.
ARE has a Return On Invested Capital of 1.53%. This is in the lower half of the industry: ARE underperforms 75.81% of its industry peers.
ARE had an Average Return On Invested Capital over the past 3 years of 1.84%. This is in line with the industry average of 3.05%.

		Industry Rank	Sector Rank
ROA	-4.22%
ROE	-9.3%
ROIC	1.53%

ROA(3y)-1.05%

ROA(5y)0.03%

ROE(3y)-2.35%

ROE(5y)-0.18%

ROIC(3y)1.84%

ROIC(5y)1.72%

1.3 Margins

ARE has a Operating Margin (20.70%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARE has declined.
ARE has a Gross Margin (69.39%) which is in line with 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	20.7%
PM (TTM)	N/A
GM	69.39%

OM growth 3Y-7.87%

OM growth 5Y-5.71%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.6%

GM growth 5Y-0.7%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 less 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

A Debt/Equity ratio of 0.76 indicates that ARE is somewhat dependend on debt financing.
ARE has a better Debt to Equity ratio (0.76) than 76.61% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.76
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC0.3

WACC5.17%

2.3 Liquidity

ARE has a Current Ratio of 0.28. 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 Current ratio of 0.28 is on the low side compared to the rest of the industry. ARE is outperformed by 88.71% of its industry peers.
ARE has a Quick Ratio of 0.28. 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 (0.28) than 87.10% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.28
Quick Ratio	0.28

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ARE have decreased strongly by -96.11% in the last year.
The earnings per share for ARE have been decreasing by -59.53% on average. This is quite bad
Looking at the last year, ARE shows a decrease in Revenue. The Revenue has decreased by -6.79% in the last year.
The Revenue has been growing by 9.84% on average over the past years. This is quite good.

EPS 1Y (TTM)-96.11%

EPS 3Y-71.83%

EPS 5Y-59.53%

EPS Q2Q%668.42%

Revenue 1Y (TTM)-6.79%

Revenue growth 3Y4.13%

Revenue growth 5Y9.84%

Sales Q2Q%-1.16%

3.2 Future

Based on estimates for the next years, ARE will show a very negative growth in Earnings Per Share. The EPS will decrease by -214.64% on average per year.
ARE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.82% yearly.

EPS Next Y-325.09%

EPS Next 2Y-214.64%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-8.32%

Revenue Next 2Y-4.47%

Revenue Next 3Y0.82%

Revenue Next 5YN/A

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 772.14, which means the current valuation is very expensive for ARE.
66.13% of the companies in the same industry are cheaper than ARE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.39, ARE is valued quite expensively.
The Forward Price/Earnings Ratio is negative for ARE. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	772.14
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARE is valued cheaply inside the industry as 81.45% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.78

4.3 Compensation for Growth

A cheap valuation may be justified as ARE's earnings are expected to decrease with -214.64% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-214.64%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

ARE has a Yearly Dividend Yield of 4.95%, which is a nice return.
ARE's Dividend Yield is comparable with the industry average which is at 6.82.
ARE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	4.95%

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 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-63.38%

EPS Next 2Y-214.64%

EPS Next 3YN/A

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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.

What is the valuation of ALEXANDRIA REAL ESTATE EQUIT based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALEXANDRIA REAL ESTATE EQUIT (ARE) is 772.14 and the Price/Book (PB) ratio is 0.6.

What is the financial health of ALEXANDRIA REAL ESTATE EQUIT (ARE) stock?

The financial health rating of ALEXANDRIA REAL ESTATE EQUIT (ARE) is 1 / 10.