ALEXANDRIA REAL ESTATE EQUIT (ARE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARE - US0152711091 - REIT
52.18 USD
-0.2 (-0.38%)
52.18 USD
0 (0%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. ARE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ARE has reported negative net income.
In the past year ARE had a positive cash flow from operations.
In the past 5 years ARE has always been profitable.
In the past 5 years ARE always reported a positive cash flow from operatings.
1.2 Ratios
ARE's Return On Assets of -1.13% is on the low side compared to the rest of the industry. ARE is outperformed by 68.50% of its industry peers.
ARE's Return On Equity of -2.53% is on the low side compared to the rest of the industry. ARE is outperformed by 67.72% 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 72.44% of its industry peers.
ARE had an Average Return On Invested Capital over the past 3 years of 1.88%. This 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
ARE's Profit Margin has declined in the last couple of years.
ARE has a Operating Margin (24.37%) which is comparable to the rest of the industry.
ARE's Operating Margin has been stable in the last couple of years.
ARE has a better Gross Margin (70.81%) than 62.99% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
ARE has about the same amout of shares outstanding than it did 1 year ago.
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 0.82. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE's Debt to Equity ratio of 0.82 is fine compared to the rest of the industry. ARE outperforms 71.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC4.96%
2.3 Liquidity
A Current Ratio of 0.41 indicates that ARE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.41, ARE is doing worse than 82.68% of the companies in the same industry.
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 81.89% of its industry peers.
| 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.
ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.24% yearly.
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
Based on estimates for the next years, ARE will show a very negative growth in Earnings Per Share. The EPS will decrease by -53.14% on average per year.
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
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
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 469.67, the valuation of ARE can be described as expensive.
ARE's Price/Forward Earnings ratio is in line with the industry average.
ARE is valuated expensively when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 469.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 83.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.33 |
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 5.88%, which is a nice return.
The stock price of ARE dropped by -29.41% 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.
Compared to an average industry Dividend Yield of 6.83, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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 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%
52.18
-0.2 (-0.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.93%
Inst Owner Change0%
Ins Owners0.88%
Ins Owner Change-3.82%
Market Cap9.02B
Revenue(TTM)3.19B
Net Income(TTM)-421.07M
Analysts68.42
Price Target65.75 (26.01%)
Short Float %4.06%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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)-19.81%
PT rev (3m)-33.43%
EPS NQ rev (1m)-44.49%
EPS NQ rev (3m)-47.94%
EPS NY rev (1m)-614.1%
EPS NY rev (3m)-515.67%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 469.67 | ||
| P/S | 2.83 | ||
| P/FCF | N/A | ||
| P/OCF | 6.55 | ||
| P/B | 0.54 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 10.33 |
EPS(TTM)-2.47
EYN/A
EPS(NY)0.11
Fwd EY0.21%
FCF(TTM)-4.05
FCFYN/A
OCF(TTM)7.96
OCFY15.26%
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
WACC4.96%
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)-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.
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.