AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVB - US0534841012 - REIT
178.02 USD
-1.4 (-0.78%)
178.02 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. While AVB belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AVB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AVB was profitable.
In the past year AVB had a positive cash flow from operations.
AVB had positive earnings in each of the past 5 years.
AVB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.31%, 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 (9.77%) is better than 75.00% of its industry peers.
AVB has a Return On Invested Capital of 3.46%. This is amongst the best in the industry. AVB outperforms 85.00% 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 2.59%.
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 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
AVB has a Profit Margin of 38.71%. This is amongst the best in the industry. AVB outperforms 85.00% of its industry peers.
AVB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 30.35%, AVB belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVB has declined.
Looking at the Gross Margin, with a value of 62.81%, AVB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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
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.
The number of shares outstanding for AVB has been increased compared to 5 years ago.
AVB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that AVB is in the distress zone and has some risk of bankruptcy.
AVB's Altman-Z score of 1.79 is amongst the best of the industry. AVB outperforms 90.00% of its industry peers.
AVB has a Debt/Equity ratio of 0.73. This is a neutral value indicating AVB is somewhat dependend on debt financing.
AVB's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. AVB outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.48
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.12 indicates that AVB may have some problems paying 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.
Looking at the Quick ratio, with a value of 0.12, AVB is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
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.
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.
The Revenue has been growing slightly by 4.71% in the past 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
Based on estimates for the next years, AVB will show a decrease in Earnings Per Share. The EPS will decrease by -4.50% on average per year.
The Revenue is expected to grow by 6.12% on average over the next years.
EPS Next Y-18.52%
EPS Next 2Y-14.5%
EPS Next 3Y-7.93%
EPS Next 5Y-4.5%
Revenue Next Year4.71%
Revenue Next 2Y4.83%
Revenue Next 3Y5.02%
Revenue Next 5Y6.12%
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
A Price/Earnings ratio of 21.71 indicates a rather expensive valuation of AVB.
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.
AVB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
Based on the Price/Forward Earnings ratio of 32.08, the valuation of AVB can be described as expensive.
Based on the Price/Forward Earnings ratio, AVB is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
AVB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 32.08 |
4.2 Price Multiples
AVB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AVB is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.8 |
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 -7.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.55
EPS Next 2Y-14.5%
EPS Next 3Y-7.93%
5. Dividend
5.1 Amount
AVB has a Yearly Dividend Yield of 3.85%.
AVB's Dividend Yield is slightly below the industry average, which is at 7.09.
AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
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-14.5%
EPS Next 3Y-7.93%
178.02
-1.4 (-0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.39%
Inst Owner Change2.85%
Ins Owners0.37%
Ins Owner Change-1.36%
Market Cap25.21B
Revenue(TTM)3.01B
Net Income(TTM)1.17B
Analysts71.85
Price Target210.42 (18.2%)
Short Float %3.37%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.41%
Div Incr Years2
Div Non Decr Years26
Ex-Date
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)-4.26%
PT rev (3m)-5.83%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 32.08 | ||
| P/S | 8.36 | ||
| P/FCF | N/A | ||
| P/OCF | 15.76 | ||
| P/B | 2.11 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 18.8 |
EPS(TTM)8.2
EY4.61%
EPS(NY)5.55
Fwd EY3.12%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.35%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)3.55
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 | 1.79 |
F-Score6
WACC7.14%
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-18.52%
EPS Next 2Y-14.5%
EPS Next 3Y-7.93%
EPS Next 5Y-4.5%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.67%
Revenue Next Year4.71%
Revenue Next 2Y4.83%
Revenue Next 3Y5.02%
Revenue Next 5Y6.12%
EBIT growth 1Y-0.11%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year80.15%
EBIT Next 3Y26.5%
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 for AVB stock?
ChartMill assigns a valuation rating of 3 / 10 to AVALONBAY COMMUNITIES INC (AVB). This can be considered as Overvalued.
What is the profitability of AVB stock?
AVALONBAY COMMUNITIES INC (AVB) has a profitability rating of 8 / 10.
Can you provide the financial health for AVB stock?
The financial health rating of AVALONBAY COMMUNITIES INC (AVB) is 2 / 10.
Is the dividend of AVALONBAY COMMUNITIES INC sustainable?
The dividend rating of AVALONBAY COMMUNITIES INC (AVB) is 5 / 10 and the dividend payout ratio is 84.41%.