AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVB - US0534841012 - REIT
182.42 USD
+1.62 (+0.9%)
182.42 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AVB. AVB was compared to 20 industry peers in the Residential REITs industry. While AVB has a great profitability rating, there are quite some concerns on its financial health. AVB is valued expensive and it does not seem to be growing.
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.
- In the past 5 years AVB has always been profitable.
- AVB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AVB has a Return On Assets of 5.31%. This is in the better half of the industry: AVB outperforms 75.00% of its industry peers.
- The Return On Equity of AVB (9.77%) is better than 75.00% of its industry peers.
- AVB's Return On Invested Capital of 3.46% is amongst the best of the industry. AVB outperforms 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 3 year average ROIC (3.44%) for AVB is below the current ROIC(3.46%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 38.71%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of AVB has declined.
- The Gross Margin of AVB (62.81%) is better than 80.00% of its industry peers.
- AVB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVB 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
- AVB has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.81 indicates that AVB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.81, AVB belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- AVB has a Debt/Equity ratio of 0.73. This is a neutral value indicating AVB is somewhat dependend on debt financing.
- AVB has a better Debt to Equity ratio (0.73) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACC0.48
WACC7.27%
2.3 Liquidity
- A Current Ratio of 0.12 indicates that AVB may have some problems paying its short term obligations.
- With a Current 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.
- AVB has a Quick 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.
- The Quick ratio of AVB (0.12) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.18% over the past year.
- Measured over the past 5 years, AVB shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
- Looking at the last year, AVB shows a small growth in Revenue. The Revenue has grown by 4.71% in the last year.
- AVB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.62% yearly.
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.
- AVB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.45% yearly.
EPS Next Y-9.75%
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
EPS Next 5Y-4.5%
Revenue Next Year4.51%
Revenue Next 2Y4.23%
Revenue Next 3Y4.63%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.25, the valuation of AVB can be described as rather expensive.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, AVB is valued at the same level.
- With a Price/Forward Earnings ratio of 33.63, AVB can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AVB indicates a rather cheap valuation: AVB is cheaper than 95.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, AVB is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 33.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVB indicates a slightly more expensive valuation: AVB is more expensive than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.03 |
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 -8.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.64
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.87%, AVB has a reasonable but not impressive dividend return.
- AVB's Dividend Yield is slightly below the industry average, which is at 30.96.
- Compared to an average S&P500 Dividend Yield of 1.84, AVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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
5.3 Sustainability
- AVB pays out 84.41% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of AVB has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP84.41%
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
182.42
+1.62 (+0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners96.8%
Inst Owner Change0.14%
Ins Owners0.37%
Ins Owner Change0.08%
Market Cap25.83B
Revenue(TTM)3.01B
Net Income(TTM)1.17B
Analysts71.11
Price Target205.1 (12.43%)
Short Float %4.34%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.41%
Div Incr Years2
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.62%
Min EPS beat(2)47.2%
Max EPS beat(2)84.04%
EPS beat(4)4
Avg EPS beat(4)48.94%
Min EPS beat(4)23.58%
Max EPS beat(4)84.04%
EPS beat(8)8
Avg EPS beat(8)42.89%
EPS beat(12)9
Avg EPS beat(12)27.14%
EPS beat(16)12
Avg EPS beat(16)40.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)-0.86%
Revenue beat(8)0
Avg Revenue beat(8)-1.96%
Revenue beat(12)0
Avg Revenue beat(12)-2.78%
Revenue beat(16)1
Avg Revenue beat(16)-2.11%
PT rev (1m)-0.75%
PT rev (3m)-7.34%
EPS NQ rev (1m)-6.64%
EPS NQ rev (3m)-8.75%
EPS NY rev (1m)5.88%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 33.63 | ||
| P/S | 8.57 | ||
| P/FCF | N/A | ||
| P/OCF | 16.15 | ||
| P/B | 2.16 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)8.2
EY4.5%
EPS(NY)5.42
Fwd EY2.97%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.19%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)3.64
Graham Number124.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.77% | ||
| ROCE | 4.38% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.48% | ||
| ROICexgc | 3.63% | ||
| OM | 30.35% | ||
| PM (TTM) | 38.71% | ||
| GM | 62.81% | ||
| 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%
ROICexgc growth 3Y11.75%
ROICexgc 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 | 243.72% | ||
| Cap/Sales | 72.43% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 88.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 1.81 |
F-Score6
WACC7.27%
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)12.18%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%2.68%
EPS Next Y-9.75%
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
EPS Next 5Y-4.5%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.67%
Revenue Next Year4.51%
Revenue Next 2Y4.23%
Revenue Next 3Y4.63%
Revenue Next 5Y5.45%
EBIT growth 1Y-0.11%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year79.68%
EBIT Next 3Y25.26%
EBIT Next 5Y17.18%
FCF growth 1Y-309.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.84%
OCF growth 3Y10.15%
OCF growth 5Y4%
AVALONBAY COMMUNITIES INC / AVB FAQ
Can you provide the ChartMill fundamental rating for AVALONBAY COMMUNITIES INC?
ChartMill assigns a fundamental rating of 5 / 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 22.25 and the Price/Book (PB) ratio is 2.16.
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 -9.75% in the next year.