AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVB - US0534841012 - REIT
180.16 USD
+1.35 (+0.75%)
180.16 USD
0 (0%)
Overall AVB gets a fundamental rating of 4 out of 10. We evaluated AVB against 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- AVB had positive earnings in the past year.
- In the past year AVB had a positive cash flow from operations.
- AVB had positive earnings in each of the past 5 years.
- Each year in the past 5 years AVB had a positive operating cash flow.
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.
- With a decent Return On Equity value of 9.77%, AVB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- 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.
- AVB had an Average Return On Invested Capital over the past 3 years of 3.44%. This 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 better Profit Margin (38.71%) than 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.
- With a decent Gross Margin value of 62.81%, AVB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of AVB has remained more or less at the same level.
| 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.
- AVB has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AVB has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.78, we must say that AVB is in the distress zone and has some risk of bankruptcy.
- AVB's Altman-Z score of 1.78 is amongst the best of the industry. AVB outperforms 90.00% of its industry peers.
- A Debt/Equity ratio of 0.73 indicates that AVB is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.73, AVB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC0.48
WACC7.21%
2.3 Liquidity
- AVB has a Current 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.
- AVB has a worse Current ratio (0.12) than 70.00% of its industry peers.
- 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.
- 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
- The Earnings Per Share has grown by an nice 12.18% over the past year.
- 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.
- The Revenue has been growing slightly by 4.62% on average over the past years.
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.
- The Revenue is expected to grow by 5.45% 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 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
- A Price/Earnings ratio of 21.97 indicates a rather expensive 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.
- When comparing the Price/Earnings ratio of AVB to the average of the S&P500 Index (27.33), we can say AVB is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 33.21, 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 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 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 33.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AVB is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.75 |
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 -8.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.59
EPS Next 2Y-15.46%
EPS Next 3Y-8.93%
5. Dividend
5.1 Amount
- AVB has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 32.52, AVB is paying slightly less dividend.
- AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
- AVB pays out 84.41% of its income as dividend. 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-15.46%
EPS Next 3Y-8.93%
180.16
+1.35 (+0.75%)
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 Change0.06%
Ins Owners0.37%
Ins Owner Change0.08%
Market Cap25.51B
Revenue(TTM)3.01B
Net Income(TTM)1.17B
Analysts71.11
Price Target206.53 (14.64%)
Short Float %3.88%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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)-0.06%
PT rev (3m)-6.69%
EPS NQ rev (1m)-6.64%
EPS NQ rev (3m)-9.31%
EPS NY rev (1m)5.88%
EPS NY rev (3m)9.63%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 33.21 | ||
| P/S | 8.47 | ||
| P/FCF | N/A | ||
| P/OCF | 15.95 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 18.75 |
EPS(TTM)8.2
EY4.55%
EPS(NY)5.42
Fwd EY3.01%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.27%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)3.59
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 | 1.78 |
F-Score6
WACC7.21%
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 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 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.
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 21.97 and the Price/Book (PB) ratio is 2.14.
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.