AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - NYSE:AVB - US0534841012 - REIT
192.28 USD
-0.56 (-0.29%)
192.28 USD
0 (0%)
Taking everything into account, AVB scores 5 out of 10 in our fundamental rating. AVB was compared to 20 industry peers in the Residential REITs industry. AVB scores excellent on profitability, but there are concerns on its financial health. AVB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AVB had positive earnings in the past year.
In the past year AVB had a positive cash flow from operations.
In the past 5 years AVB has always been profitable.
In the past 5 years AVB always reported a positive cash flow from operatings.
1.2 Ratios
AVB's Return On Assets of 5.30% is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.69%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
AVB has a better Return On Invested Capital (3.49%) than 90.00% of its industry peers.
AVB had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 2.59%.
The 3 year average ROIC (3.44%) for AVB is below the current ROIC(3.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.69% | ||
| ROIC | 3.49% |
ROA(3y)5.06%
ROA(5y)4.9%
ROE(3y)9%
ROE(5y)8.77%
ROIC(3y)3.44%
ROIC(5y)3.18%
1.3 Margins
With an excellent Profit Margin value of 38.84%, AVB belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
AVB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 30.87%, AVB belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
AVB's Operating Margin has declined in the last couple of years.
AVB has a better Gross Margin (63.00%) than 85.00% of its industry peers.
In the last couple of years the Gross Margin of AVB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.87% | ||
| PM (TTM) | 38.84% | ||
| GM | 63% |
OM growth 3Y5.59%
OM growth 5Y-2.68%
PM growth 3Y-5.32%
PM growth 5Y1.91%
GM growth 3Y0.2%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
AVB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AVB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AVB has more shares outstanding
Compared to 1 year ago, AVB has an improved debt to assets ratio.
2.2 Solvency
AVB has an Altman-Z score of 1.93. This is not the best score and indicates that AVB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, AVB belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that AVB is somewhat dependend on debt financing.
AVB has a better Debt to Equity ratio (0.73) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.48
WACC7.2%
2.3 Liquidity
AVB has a Current Ratio of 0.10. This is a bad value and indicates that AVB is not financially healthy enough and could expect problems in meeting its short term obligations.
AVB has a Current ratio of 0.10. This is in the lower half of the industry: AVB underperforms 75.00% of its industry peers.
A Quick Ratio of 0.10 indicates that AVB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.10, AVB is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
AVB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.56%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.92%.
AVB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.62% yearly.
EPS 1Y (TTM)37.56%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%5.62%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.75%
3.2 Future
Based on estimates for the next years, AVB will show a decrease in Earnings Per Share. The EPS will decrease by -2.56% on average per year.
Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 6.29% on average per year.
EPS Next Y-21.5%
EPS Next 2Y-13.21%
EPS Next 3Y-6.63%
EPS Next 5Y-2.56%
Revenue Next Year4.75%
Revenue Next 2Y4.9%
Revenue Next 3Y5.14%
Revenue Next 5Y6.29%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.65, the valuation of AVB can be described as rather expensive.
Based on the Price/Earnings ratio, AVB is valued cheaper than 95.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVB to the average of the S&P500 Index (27.27), we can say AVB is valued inline with the index average.
With a Price/Forward Earnings ratio of 33.64, AVB can be considered very expensive at the moment.
AVB's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVB is cheaper than 95.00% of the companies in the same industry.
AVB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 33.64 |
4.2 Price Multiples
65.00% of the companies in the same industry are cheaper than AVB, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.05 |
4.3 Compensation for Growth
AVB has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AVB's earnings are expected to decrease with -6.63% in the coming years.
PEG (NY)N/A
PEG (5Y)3.87
EPS Next 2Y-13.21%
EPS Next 3Y-6.63%
5. Dividend
5.1 Amount
AVB has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.68, AVB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, AVB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of AVB has a limited annual growth rate of 2.45%.
AVB has been paying a dividend for at least 10 years, so it has a reliable track record.
AVB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.45%
Div Incr Years2
Div Non Decr Years26
5.3 Sustainability
AVB pays out 84.31% of its income as dividend. This is not a sustainable payout ratio.
AVB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP84.31%
EPS Next 2Y-13.21%
EPS Next 3Y-6.63%
192.28
-0.56 (-0.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.36%
Inst Owner Change-4.15%
Ins Owners0.37%
Ins Owner Change-0.22%
Market Cap27.38B
Analysts71.85
Price Target221.34 (15.11%)
Short Float %2.96%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.31%
Div Incr Years2
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.39%
Min EPS beat(2)23.58%
Max EPS beat(2)47.2%
EPS beat(4)4
Avg EPS beat(4)47.51%
Min EPS beat(4)23.58%
Max EPS beat(4)78.32%
EPS beat(8)7
Avg EPS beat(8)31.65%
EPS beat(12)9
Avg EPS beat(12)34.92%
EPS beat(16)11
Avg EPS beat(16)33.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)-0.85%
Revenue beat(8)0
Avg Revenue beat(8)-1.84%
Revenue beat(12)0
Avg Revenue beat(12)-2.72%
Revenue beat(16)2
Avg Revenue beat(16)-1.97%
PT rev (1m)-3.84%
PT rev (3m)-6.3%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)0.45%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 33.64 | ||
| P/S | 9.18 | ||
| P/FCF | N/A | ||
| P/OCF | 17.02 | ||
| P/B | 2.29 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 20.05 |
EPS(TTM)8.13
EY4.23%
EPS(NY)5.72
Fwd EY2.97%
FCF(TTM)-3.23
FCFYN/A
OCF(TTM)11.3
OCFY5.88%
SpS20.94
BVpS83.91
TBVpS83.91
PEG (NY)N/A
PEG (5Y)3.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.69% | ||
| ROCE | 4.41% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.5% | ||
| OM | 30.87% | ||
| PM (TTM) | 38.84% | ||
| GM | 63% | ||
| FCFM | N/A |
ROA(3y)5.06%
ROA(5y)4.9%
ROE(3y)9%
ROE(5y)8.77%
ROIC(3y)3.44%
ROIC(5y)3.18%
ROICexc(3y)3.5%
ROICexc(5y)3.24%
ROICexgc(3y)3.51%
ROICexgc(5y)3.24%
ROCE(3y)4.35%
ROCE(5y)4.03%
ROICexcg growth 3Y11.75%
ROICexcg growth 5Y0.03%
ROICexc growth 3Y11.82%
ROICexc growth 5Y0.06%
OM growth 3Y5.59%
OM growth 5Y-2.68%
PM growth 3Y-5.32%
PM growth 5Y1.91%
GM growth 3Y0.2%
GM growth 5Y-1.16%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.83 | ||
| Cap/Depr | 235.87% | ||
| Cap/Sales | 69.41% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 89.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.93 |
F-Score6
WACC7.2%
ROIC/WACC0.48
Cap/Depr(3y)183.94%
Cap/Depr(5y)179.75%
Cap/Sales(3y)55.28%
Cap/Sales(5y)55.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.56%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%5.62%
EPS Next Y-21.5%
EPS Next 2Y-13.21%
EPS Next 3Y-6.63%
EPS Next 5Y-2.56%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.75%
Revenue Next Year4.75%
Revenue Next 2Y4.9%
Revenue Next 3Y5.14%
Revenue Next 5Y6.29%
EBIT growth 1Y0.93%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year79.77%
EBIT Next 3Y26.6%
EBIT Next 5Y17.25%
FCF growth 1Y-7774.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.52%
OCF growth 3Y10.15%
OCF growth 5Y4%