AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - NYSE:AVB - US0534841012 - REIT
187.05 USD
+0.03 (+0.02%)
187.05 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. AVB has an excellent profitability rating, but there are concerns on its financial health. AVB is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years AVB has been profitable.
In the past 5 years AVB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.30%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
With an excellent Return On Equity value of 9.69%, AVB belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Return On Invested Capital of AVB (3.49%) is better than 90.00% 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 3 year average ROIC (3.44%) for AVB is below the current ROIC(3.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.69% | ||
| ROIC | 3.49% |
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 better Profit Margin (38.84%) than 90.00% of its industry peers.
AVB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.87%, AVB belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVB has declined.
The Gross Margin of AVB (63.00%) is better than 85.00% of its industry peers.
AVB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.87% | ||
| PM (TTM) | 38.84% | ||
| GM | 63% |
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.
Compared to 1 year ago, AVB has about the same amount of shares outstanding.
The number of shares outstanding for AVB has been increased compared to 5 years ago.
The debt/assets ratio for AVB has been reduced compared to a year ago.
2.2 Solvency
AVB has an Altman-Z score of 1.88. This is not the best score and indicates that AVB is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.88, AVB belongs to the best of the industry, outperforming 95.00% 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.
With a decent Debt to Equity ratio value of 0.73, AVB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.88 |
ROIC/WACC0.49
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.10 indicates that AVB may have some problems paying its short term obligations.
AVB's Current ratio of 0.10 is on the low side compared to the rest of the industry. AVB is outperformed by 75.00% of its industry peers.
AVB has a Quick Ratio of 0.10. 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 Quick ratio value of 0.10, AVB is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
AVB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.56%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
The Revenue has been growing slightly by 4.92% 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)37.56%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%5.62%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.75%
3.2 Future
AVB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.50% yearly.
Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
EPS Next Y-17.68%
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
EPS Next 5Y-4.5%
Revenue Next Year4.71%
Revenue Next 2Y4.85%
Revenue Next 3Y5.07%
Revenue Next 5Y5.82%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.01, 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 95.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AVB to the average of the S&P500 Index (27.69), we can say AVB is valued inline with the index average.
The Price/Forward Earnings ratio is 33.45, which means the current valuation is very expensive for AVB.
Based on the Price/Forward Earnings ratio, AVB is valued cheaper than 95.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, AVB is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 33.45 |
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 | 19.59 |
4.3 Compensation for Growth
AVB has an outstanding profitability rating, which may justify a higher PE ratio.
AVB's earnings are expected to decrease with -7.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.76
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
5. Dividend
5.1 Amount
AVB has a Yearly Dividend Yield of 3.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.17, AVB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, AVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.45%
Div Incr Years2
Div Non Decr Years26
5.3 Sustainability
84.31% of the earnings are spent on dividend by AVB. 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.
DP84.31%
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
187.05
+0.03 (+0.02%)
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 Change-0.13%
Ins Owners0.37%
Ins Owner Change-0.22%
Market Cap26.63B
Analysts71.11
Price Target221.34 (18.33%)
Short Float %3.06%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.31%
Div Incr Years2
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.39%
Min EPS beat(2)23.58%
Max EPS beat(2)47.2%
EPS beat(4)4
Avg EPS beat(4)47.51%
Min EPS beat(4)23.58%
Max EPS beat(4)78.32%
EPS beat(8)7
Avg EPS beat(8)31.65%
EPS beat(12)9
Avg EPS beat(12)34.92%
EPS beat(16)11
Avg EPS beat(16)33.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)-0.85%
Revenue beat(8)0
Avg Revenue beat(8)-1.84%
Revenue beat(12)0
Avg Revenue beat(12)-2.72%
Revenue beat(16)2
Avg Revenue beat(16)-1.97%
PT rev (1m)0%
PT rev (3m)-5.63%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)4.87%
EPS NY rev (3m)5.34%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.01 | ||
| Fwd PE | 33.45 | ||
| P/S | 8.93 | ||
| P/FCF | N/A | ||
| P/OCF | 16.56 | ||
| P/B | 2.23 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 19.59 |
EPS(TTM)8.13
EY4.35%
EPS(NY)5.59
Fwd EY2.99%
FCF(TTM)-3.23
FCFYN/A
OCF(TTM)11.3
OCFY6.04%
SpS20.94
BVpS83.91
TBVpS83.91
PEG (NY)N/A
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 9.69% | ||
| ROCE | 4.41% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.5% | ||
| OM | 30.87% | ||
| PM (TTM) | 38.84% | ||
| GM | 63% | ||
| 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%
ROICexcg growth 3Y11.75%
ROICexcg 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 | 235.87% | ||
| Cap/Sales | 69.41% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 89.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.88 |
F-Score6
WACC7.14%
ROIC/WACC0.49
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)37.56%
EPS 3Y17.41%
EPS 5Y6.12%
EPS Q2Q%5.62%
EPS Next Y-17.68%
EPS Next 2Y-14.17%
EPS Next 3Y-7.63%
EPS Next 5Y-4.5%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.75%
Revenue Next Year4.71%
Revenue Next 2Y4.85%
Revenue Next 3Y5.07%
Revenue Next 5Y5.82%
EBIT growth 1Y0.93%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year80.15%
EBIT Next 3Y26.5%
EBIT Next 5Y17.18%
FCF growth 1Y-7774.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.52%
OCF growth 3Y10.15%
OCF growth 5Y4%