AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AVB • US0534841012

177.67 USD
+2.87 (+1.64%)
At close: Jan 30, 2026
177.67 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

4

Overall AVB gets a fundamental rating of 4 out of 10. We evaluated AVB against 20 industry peers in the Residential REITs industry. AVB scores excellent on profitability, but there are concerns on its financial health. AVB has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • AVB had positive earnings in the past year.
  • AVB had a positive operating cash flow in the past year.
  • Each year in the past 5 years AVB has been profitable.
  • AVB had a positive operating cash flow in each of the past 5 years.
AVB Yearly Net Income VS EBIT VS OCF VS FCFAVB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

1.2 Ratios

  • AVB has a better Return On Assets (5.31%) than 75.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 9.77%, AVB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • The Return On Invested Capital of AVB (3.46%) is better than 85.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AVB is in line with the industry average of 2.59%.
  • The last Return On Invested Capital (3.46%) for AVB is above the 3 year average (3.44%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.31%
ROE 9.77%
ROIC 3.46%
ROA(3y)5.06%
ROA(5y)4.9%
ROE(3y)9%
ROE(5y)8.77%
ROIC(3y)3.44%
ROIC(5y)3.18%
AVB Yearly ROA, ROE, ROICAVB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • AVB's Profit Margin of 38.71% is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
  • AVB's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AVB (30.35%) is better than 90.00% of its industry peers.
  • AVB's Operating Margin has declined in the last couple of years.
  • The Gross Margin of AVB (62.81%) is better than 80.00% 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 RankSector Rank
OM 30.35%
PM (TTM) 38.71%
GM 62.81%
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%
AVB Yearly Profit, Operating, Gross MarginsAVB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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2

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.
  • Compared to 1 year ago, AVB has about the same amount of shares outstanding.
  • AVB has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AVB has an improved debt to assets ratio.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
AVB Yearly Total Debt VS Total AssetsAVB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

  • AVB has an Altman-Z score of 1.77. This is a bad value and indicates that AVB is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of AVB (1.77) is better than 90.00% of its industry peers.
  • A Debt/Equity ratio of 0.73 indicates that AVB is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.73, AVB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.77
ROIC/WACC0.48
WACC7.25%
AVB Yearly LT Debt VS Equity VS FCFAVB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • AVB has a Current Ratio of 0.12. 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 0.12. This is in the lower half of the industry: AVB underperforms 70.00% of its industry peers.
  • A Quick Ratio of 0.12 indicates that AVB may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.12, AVB is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.12
Quick Ratio 0.12
AVB Yearly Current Assets VS Current LiabilitesAVB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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3

3. Growth

3.1 Past

  • AVB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.18%, which is quite good.
  • The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
  • The Revenue has been growing slightly by 4.71% in the past year.
  • The Revenue has been growing slightly by 4.62% on average over the past years.
EPS 1Y (TTM)12.18%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%2.68%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.67%

3.2 Future

  • The Earnings Per Share is expected to decrease by -4.50% on average over the next years.
  • Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y-5.76%
EPS Next 2Y-16.07%
EPS Next 3Y-9.38%
EPS Next 5Y-4.5%
Revenue Next Year4.4%
Revenue Next 2Y4.13%
Revenue Next 3Y4.57%
Revenue Next 5Y5.45%

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 stable.
AVB Yearly Revenue VS EstimatesAVB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
AVB Yearly EPS VS EstimatesAVB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 21.67, AVB is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of AVB indicates a rather cheap valuation: AVB is cheaper than 85.00% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of AVB to the average of the S&P500 Index (28.32), we can say AVB is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 33.23, which means the current valuation is very expensive for AVB.
  • 90.00% of the companies in the same industry are more expensive than AVB, based on the Price/Forward Earnings ratio.
  • AVB's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.
Industry RankSector Rank
PE 21.67
Fwd PE 33.23
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AVB is valued a bit more expensive than 65.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.66
AVB Per share dataAVB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The excellent profitability rating of AVB may justify a higher PE ratio.
  • AVB's earnings are expected to decrease with -9.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.54
EPS Next 2Y-16.07%
EPS Next 3Y-9.38%

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6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.00%, AVB is a good candidate for dividend investing.
  • AVB's Dividend Yield is slightly below the industry average, which is at 41.00.
  • Compared to an average S&P500 Dividend Yield of 1.83, AVB pays a better dividend.
Industry RankSector Rank
Dividend Yield 4%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.45%
Div Incr Years2
Div Non Decr Years26
AVB Yearly Dividends per shareAVB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

  • 84.41% of the earnings are spent on dividend by AVB. 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.
DP84.41%
EPS Next 2Y-16.07%
EPS Next 3Y-9.38%
AVB Yearly Income VS Free CF VS DividendAVB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B
AVB Dividend Payout.AVB Dividend Payout, showing the Payout Ratio.AVB Dividend Payout.PayoutRetained Earnings

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AVALONBAY COMMUNITIES INC / AVB FAQ

Can you provide the ChartMill fundamental rating for AVALONBAY COMMUNITIES INC?

ChartMill assigns a fundamental rating of 4 / 10 to AVB.


What is the valuation status of AVALONBAY COMMUNITIES INC (AVB) stock?

ChartMill assigns a valuation rating of 3 / 10 to AVALONBAY COMMUNITIES INC (AVB). This can be considered as Overvalued.


Can you provide the profitability details for AVALONBAY COMMUNITIES INC?

AVALONBAY COMMUNITIES INC (AVB) has a profitability rating of 8 / 10.


What is the valuation of AVALONBAY COMMUNITIES INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AVALONBAY COMMUNITIES INC (AVB) is 21.67 and the Price/Book (PB) ratio is 2.11.


Can you provide the expected EPS growth for AVB stock?

The Earnings per Share (EPS) of AVALONBAY COMMUNITIES INC (AVB) is expected to decline by -5.76% in the next year.