AVALONBAY COMMUNITIES INC (AVB) Fundamental Analysis & Valuation

NYSE:AVB • US0534841012

Current stock price

166.93 USD
+2.03 (+1.23%)
Last:

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.
  • In the past 5 years AVB has always been profitable.
  • In the past 5 years AVB always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 4.73%, AVB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • The Return On Equity of AVB (9.04%) is better than 70.00% of its industry peers.
  • AVB has a better Return On Invested Capital (3.43%) than 80.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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

  • Looking at the Profit Margin, with a value of 34.51%, AVB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • AVB's Profit Margin has been stable in the last couple of years.
  • AVB has a better Operating Margin (30.25%) than 90.00% of its industry peers.
  • AVB's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of AVB (63.14%) is better than 90.00% 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 30.25%
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVB is destroying value.
  • AVB has less shares outstanding than it did 1 year ago.
  • AVB has about the same amout of shares outstanding than it did 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 1.56. This is a bad value and indicates that AVB is not financially healthy and even has some risk of bankruptcy.
  • AVB's Altman-Z score of 1.56 is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
  • AVB has a Debt/Equity ratio of 0.81. This is a neutral value indicating AVB is somewhat dependend on debt financing.
  • AVB has a better Debt to Equity ratio (0.81) than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Altman-Z 1.56
ROIC/WACC0.48
WACC7.11%
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

  • AVB has a Current Ratio of 0.19. This is a bad value and indicates that AVB is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.19, AVB is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.19 indicates that AVB may have some problems paying its short term obligations.
  • AVB's Quick ratio of 0.19 is on the low side compared to the rest of the industry. AVB is outperformed by 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 for AVB have decreased by -2.64% in the last year.
  • Measured over the past 5 years, AVB shows a small growth in Earnings Per Share. The EPS has been growing by 4.64% on average per year.
  • AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
  • AVB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.73% yearly.
EPS 1Y (TTM)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.93%

3.2 Future

  • The Earnings Per Share is expected to decrease by -3.07% 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 5.64% yearly.
EPS Next Y-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue Next Year3.56%
Revenue Next 2Y4.35%
Revenue Next 3Y2.58%
Revenue Next 5Y5.64%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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. AVB Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.59, AVB is valued on the expensive side.
  • 85.00% of the companies in the same industry are more expensive than AVB, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of AVB to the average of the S&P500 Index (25.51), we can say AVB is valued inline with the index average.
  • The Price/Forward Earnings ratio is 32.82, which means the current valuation is very expensive for AVB.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AVB indicates a rather cheap valuation: AVB is cheaper than 90.00% of the companies listed in the same industry.
  • AVB's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.76.
Industry RankSector Rank
PE 22.59
Fwd PE 32.82
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

  • AVB's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.6
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 decent profitability rating of AVB may justify a higher PE ratio.
  • AVB's earnings are expected to decrease with -8.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.87
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%

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

5

5. AVB Dividend Analysis

5.1 Amount

  • AVB has a Yearly Dividend Yield of 4.36%, which is a nice return.
  • AVB's Dividend Yield is slightly below the industry average, which is at 46.72.
  • Compared to an average S&P500 Dividend Yield of 1.89, AVB pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.36%

5.2 History

  • The dividend of AVB has a limited annual growth rate of 2.26%.
  • AVB has paid a dividend for at least 10 years, which is 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 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 2026 2 4 6

5.3 Sustainability

  • 94.57% 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.
DP94.57%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
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 (4/2/2026, 11:52:09 AM)

166.93

+2.03 (+1.23%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners99.5%
Inst Owner Change12.2%
Ins Owners0.35%
Ins Owner Change10.3%
Market Cap23.38B
Revenue(TTM)3.04B
Net Income(TTM)1.05B
Analysts69.63
Price Target197.6 (18.37%)
Short Float %3.28%
Short Ratio3.97
Dividend
Industry RankSector Rank
Dividend Yield 4.36%
Yearly Dividend7.03
Dividend Growth(5Y)2.26%
DP94.57%
Div Incr Years2
Div Non Decr Years26
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)-1.06%
PT rev (3m)-4.32%
EPS NQ rev (1m)2.16%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-6.24%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.78%
Valuation
Industry RankSector Rank
PE 22.59
Fwd PE 32.82
P/S 7.69
P/FCF N/A
P/OCF 13.99
P/B 2.01
P/tB 2.01
EV/EBITDA 17.6
EPS(TTM)7.39
EY4.43%
EPS(NY)5.09
Fwd EY3.05%
FCF(TTM)-3.47
FCFYN/A
OCF(TTM)11.93
OCFY7.15%
SpS21.71
BVpS82.89
TBVpS82.89
PEG (NY)N/A
PEG (5Y)4.87
Graham Number117.4
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 1.56
F-Score5
WACC7.11%
ROIC/WACC0.48
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)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
EPS Next Y-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.93%
Revenue Next Year3.56%
Revenue Next 2Y4.35%
Revenue Next 3Y2.58%
Revenue Next 5Y5.64%
EBIT growth 1Y0.44%
EBIT growth 3Y5.41%
EBIT growth 5Y5.3%
EBIT Next Year87.8%
EBIT Next 3Y28.23%
EBIT Next 5Y18.53%
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 22.59 and the Price/Book (PB) ratio is 2.01.


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%.