AVALONBAY COMMUNITIES INC (AVB) Fundamental Analysis & Valuation

NYSE:AVB • US0534841012

Current stock price

183.5 USD
+9.22 (+5.29%)
At close:
183.5 USD
0 (0%)
After Hours:

This AVB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AVB Profitability Analysis

1.1 Basic Checks

  • AVB had positive earnings in the past year.
  • In the past year AVB had a positive cash flow from operations.
  • AVB had positive earnings in each of the past 5 years.
  • Each year in the past 5 years AVB had a positive operating cash flow.
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 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of AVB (4.73%) is better than 75.00% of its industry peers.
  • AVB has a Return On Equity of 9.04%. This is in the better half of the industry: AVB outperforms 70.00% of its industry peers.
  • With a decent Return On Invested Capital value of 3.43%, AVB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for AVB is in line with the industry average of 2.73%.
Industry RankSector Rank
ROA 4.73%
ROE 9.04%
ROIC 3.43%
ROA(3y)4.78%
ROA(5y)4.99%
ROE(3y)8.65%
ROE(5y)9.04%
ROIC(3y)3.53%
ROIC(5y)3.26%
AVB Yearly ROA, ROE, ROICAVB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • AVB has a Profit Margin of 34.51%. This is in the better half of the industry: AVB outperforms 80.00% of its industry peers.
  • In the last couple of years the Profit Margin of AVB has remained more or less at the same level.
  • The Operating Margin of AVB (30.25%) is better than 90.00% of its industry peers.
  • In the last couple of years the Operating Margin of AVB has remained more or less at the same level.
  • AVB has a Gross Margin of 63.14%. This is amongst the best in the industry. AVB outperforms 90.00% of its industry peers.
  • AVB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 30.25%
PM (TTM) 34.51%
GM 63.14%
OM growth 3Y-0.04%
OM growth 5Y-0.41%
PM growth 3Y-7.61%
PM growth 5Y-0.78%
GM growth 3Y-0.74%
GM growth 5Y-0.34%
AVB Yearly Profit, Operating, Gross MarginsAVB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. AVB Health Analysis

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 has been reduced compared to 1 year ago.
  • The number of shares outstanding for AVB remains at a similar level compared to 5 years ago.
  • Compared to 1 year ago, AVB has a worse debt to assets ratio.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B 20B

2.2 Solvency

  • AVB has an Altman-Z score of 1.70. This is a bad value and indicates that AVB is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.70, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.81 indicates that AVB is somewhat dependend on debt financing.
  • AVB has a Debt to Equity ratio of 0.81. This is in the better half of the industry: AVB outperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Altman-Z 1.7
ROIC/WACC0.47
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 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.19 indicates that AVB may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.19, AVB is doing worse than 70.00% of the companies in the same industry.
  • A Quick Ratio of 0.19 indicates that AVB may have some problems paying its short term obligations.
  • The Quick ratio of AVB (0.19) is worse than 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
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 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AVB Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.60% over the past year.
  • AVB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.64% yearly.
  • Looking at the last year, AVB shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
  • Measured over the past years, AVB shows a small growth in Revenue. The Revenue has been growing by 5.73% on average per year.
EPS 1Y (TTM)6.6%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%70.48%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.51%

3.2 Future

  • The Earnings Per Share is expected to decrease by -4.41% on average over the next years.
  • The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y-32.26%
EPS Next 2Y-16.13%
EPS Next 3Y-8.88%
EPS Next 5Y-4.41%
Revenue Next Year3.47%
Revenue Next 2Y4.24%
Revenue Next 3Y2.56%
Revenue Next 5Y5.42%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 2031 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. AVB Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.44, which indicates a rather expensive current valuation of AVB.
  • Based on the Price/Earnings ratio, AVB is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
  • AVB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.91.
  • AVB is valuated quite expensively with a Price/Forward Earnings ratio of 35.30.
  • Based on the Price/Forward Earnings ratio, AVB is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, AVB is valued quite expensively.
Industry RankSector Rank
PE 21.44
Fwd PE 35.3
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 60.00% of the companies in the same industry are cheaper than AVB, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.92
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

  • AVB has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as AVB's earnings are expected to decrease with -8.88% in the coming years.
PEG (NY)N/A
PEG (5Y)4.62
EPS Next 2Y-16.13%
EPS Next 3Y-8.88%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AVB Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.88%, AVB has a reasonable but not impressive dividend return.
  • AVB's Dividend Yield is slightly below the industry average, which is at 44.24.
  • AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.88%

5.2 History

  • The dividend of AVB has a limited annual growth rate of 2.26%.
  • 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)2.26%
Div Incr Years3
Div Non Decr Years27
AVB Yearly Dividends per shareAVB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • AVB pays out 94.57% 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.
DP94.57%
EPS Next 2Y-16.13%
EPS Next 3Y-8.88%
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 2025 0 500M -500M 1B
AVB Dividend Payout.AVB Dividend Payout, showing the Payout Ratio.AVB Dividend Payout.PayoutRetained Earnings

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AVB Fundamentals: All Metrics, Ratios and Statistics

AVALONBAY COMMUNITIES INC

NYSE:AVB (4/28/2026, 8:13:58 PM)

After market: 183.5 0 (0%)

183.5

+9.22 (+5.29%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Industry Strength26.09
Industry Growth16.15
Earnings (Last)04-27
Earnings (Next)07-28
Inst Owners100.43%
Inst Owner Change-7.86%
Ins Owners0.41%
Ins Owner Change10.3%
Market Cap25.53B
Revenue(TTM)3.04B
Net Income(TTM)1.05B
Analysts68.89
Price Target195.05 (6.29%)
Short Float %3.3%
Short Ratio4.73
Dividend
Industry RankSector Rank
Dividend Yield 3.88%
Yearly Dividend7.03
Dividend Growth(5Y)2.26%
DP94.57%
Div Incr Years3
Div Non Decr Years27
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.89%
Min EPS beat(2)-14.25%
Max EPS beat(2)84.04%
EPS beat(4)3
Avg EPS beat(4)35.14%
Min EPS beat(4)-14.25%
Max EPS beat(4)84.04%
EPS beat(8)7
Avg EPS beat(8)37.91%
EPS beat(12)8
Avg EPS beat(12)24.98%
EPS beat(16)11
Avg EPS beat(16)30.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)-0.76%
Revenue beat(8)0
Avg Revenue beat(8)-0.79%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)1
Avg Revenue beat(16)-2.13%
PT rev (1m)-1.21%
PT rev (3m)-3.8%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-3.16%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 21.44
Fwd PE 35.3
P/S 8.39
P/FCF N/A
P/OCF 15.28
P/B 2.2
P/tB 2.2
EV/EBITDA 18.92
EPS(TTM)8.56
EY4.66%
EPS(NY)5.2
Fwd EY2.83%
FCF(TTM)-3.49
FCFYN/A
OCF(TTM)12.01
OCFY6.55%
SpS21.86
BVpS83.47
TBVpS83.47
PEG (NY)N/A
PEG (5Y)4.62
Graham Number126.791 (-30.9%)
Profitability
Industry RankSector Rank
ROA 4.73%
ROE 9.04%
ROCE 4.34%
ROIC 3.43%
ROICexc 3.46%
ROICexgc 3.46%
OM 30.25%
PM (TTM) 34.51%
GM 63.14%
FCFM N/A
ROA(3y)4.78%
ROA(5y)4.99%
ROE(3y)8.65%
ROE(5y)9.04%
ROIC(3y)3.53%
ROIC(5y)3.26%
ROICexc(3y)3.57%
ROICexc(5y)3.31%
ROICexgc(3y)3.57%
ROICexgc(5y)3.32%
ROCE(3y)4.46%
ROCE(5y)4.12%
ROICexgc growth 3Y1.85%
ROICexgc growth 5Y2.21%
ROICexc growth 3Y1.92%
ROICexc growth 5Y2.24%
OM growth 3Y-0.04%
OM growth 5Y-0.41%
PM growth 3Y-7.61%
PM growth 5Y-0.78%
GM growth 3Y-0.74%
GM growth 5Y-0.34%
F-Score5
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Debt/EBITDA 5.1
Cap/Depr 236.11%
Cap/Sales 70.92%
Interest Coverage 3.89
Cash Conversion 91.16%
Profit Quality N/A
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z 1.7
F-Score5
WACC7.25%
ROIC/WACC0.47
Cap/Depr(3y)195.87%
Cap/Depr(5y)199.24%
Cap/Sales(3y)57.94%
Cap/Sales(5y)61.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.6%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%70.48%
EPS Next Y-32.26%
EPS Next 2Y-16.13%
EPS Next 3Y-8.88%
EPS Next 5Y-4.41%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.51%
Revenue Next Year3.47%
Revenue Next 2Y4.24%
Revenue Next 3Y2.56%
Revenue Next 5Y5.42%
EBIT growth 1Y0.44%
EBIT growth 3Y5.41%
EBIT growth 5Y5.3%
EBIT Next Year86.26%
EBIT Next 3Y27.45%
EBIT Next 5Y17.94%
FCF growth 1Y-8464.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.93%
OCF growth 3Y5.53%
OCF growth 5Y6.5%

AVALONBAY COMMUNITIES INC / AVB Fundamental Analysis 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.


How profitable is AVALONBAY COMMUNITIES INC (AVB) stock?

AVALONBAY COMMUNITIES INC (AVB) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for AVB stock?

The Price/Earnings (PE) ratio for AVALONBAY COMMUNITIES INC (AVB) is 21.44 and the Price/Book (PB) ratio is 2.2.


How sustainable is the dividend of AVALONBAY COMMUNITIES INC (AVB) stock?

The dividend rating of AVALONBAY COMMUNITIES INC (AVB) is 5 / 10 and the dividend payout ratio is 94.57%.