AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVB - US0534841012 - REIT
183.37 USD
+0.12 (+0.07%)
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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years AVB has been profitable.
AVB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVB has a better Return On Assets (5.31%) than 75.00% of its industry peers.
AVB has a better Return On Equity (9.77%) 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
With an excellent Profit Margin value of 38.71%, AVB belongs to the best 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.
AVB's Operating Margin of 30.35% is amongst the best of the industry. AVB outperforms 90.00% of its industry peers.
AVB's Operating Margin has declined in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVB is destroying value.
AVB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVB has more shares outstanding
Compared to 1 year ago, AVB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.84 indicates that AVB is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVB has a better Altman-Z score (1.84) than 95.00% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that AVB is somewhat dependend on debt financing.
The Debt to Equity ratio of AVB (0.73) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.48
WACC7.19%
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.
A Quick Ratio of 0.12 indicates that AVB may have some problems paying its short term obligations.
With a Quick 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.
| 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.
AVB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
The Revenue has been growing slightly by 4.71% in the past year.
Measured over the past years, AVB shows a small growth in Revenue. The Revenue has been growing by 4.62% on average per year.
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-9.75%
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
EPS Next 5Y-4.5%
Revenue Next Year4.64%
Revenue Next 2Y4.39%
Revenue Next 3Y4.75%
Revenue Next 5Y6.12%
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.
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
The Price/Earnings ratio is 22.36, 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 33.80, the valuation of AVB can be described as expensive.
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 23.35, AVB is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 33.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVB is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.23 |
4.3 Compensation for Growth
The excellent profitability rating of AVB may justify a higher PE ratio.
A cheap valuation may be justified as AVB's earnings are expected to decrease with -8.93% in the coming years.
PEG (NY)N/A
PEG (5Y)3.65
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, AVB has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.82, AVB pays less dividend than the industry average, which is at 11.48. 80.00% of the companies listed in the same industry pay a better dividend than AVB!
Compared to an average S&P500 Dividend Yield of 2.00, AVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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.
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%
NYSE:AVB (12/31/2025, 12:12:35 PM)
183.37
+0.12 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.83%
Inst Owner Change2.86%
Ins Owners0.37%
Ins Owner Change0.08%
Market Cap25.96B
Revenue(TTM)3.01B
Net Income(TTM)1.17B
Analysts72.59
Price Target206.53 (12.63%)
Short Float %3.88%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)-1.85%
PT rev (3m)-6.69%
EPS NQ rev (1m)-8.36%
EPS NQ rev (3m)-9.42%
EPS NY rev (1m)10.76%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 33.8 | ||
| P/S | 8.62 | ||
| P/FCF | N/A | ||
| P/OCF | 16.23 | ||
| P/B | 2.17 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 19.23 |
EPS(TTM)8.2
EY4.47%
EPS(NY)5.42
Fwd EY2.96%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.16%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)3.65
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 | 1.84 |
F-Score6
WACC7.19%
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 Year4.64%
Revenue Next 2Y4.39%
Revenue Next 3Y4.75%
Revenue Next 5Y6.12%
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 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 3 / 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%.