AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis

NYSE:AVB • US0534841012

177.625 USD
+0.04 (+0.03%)
Last: Feb 25, 2026, 11:54 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

AVB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. AVB scores excellent on profitability, but there are concerns on its financial health. AVB is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

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 4 of the past 5 years.
  • AVB had a positive operating cash flow in 4 of the past 5 years.
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 0 500M -500M 1B 1.5B

1.2 Ratios

  • AVB has a better Return On Assets (5.31%) than 75.00% of its industry peers.
  • AVB's Return On Equity of 9.77% is fine compared to the rest of the industry. AVB outperforms 75.00% of its industry peers.
  • The Return On Invested Capital of AVB (3.46%) is better than 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 3 year average ROIC (3.44%) for AVB is below the current ROIC(3.46%), indicating increased profibility in the last year.
Industry RankSector 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%
AVB Yearly ROA, ROE, ROICAVB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • AVB's Profit Margin of 38.71% is amongst the best of the industry. AVB outperforms 85.00% of its industry peers.
  • In the last couple of years the Profit Margin of AVB has grown nicely.
  • AVB has a Operating Margin of 30.35%. This is amongst the best in the industry. AVB outperforms 90.00% of its industry peers.
  • AVB's Operating Margin has declined in the last couple of years.
  • 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.
  • AVB's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
AVB Yearly Profit, Operating, Gross MarginsAVB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

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.
  • There is no outstanding debt for AVB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B 20B

2.2 Solvency

  • AVB has an Altman-Z score of 1.77. This is a bad value and indicates that AVB is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.77, AVB belongs to the top of the industry, outperforming 90.00% 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 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.77
ROIC/WACC0.49
WACC7.08%
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 0 2B 4B 6B 8B 10B

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.
  • 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.
  • AVB's Quick ratio of 0.12 is on the low side compared to the rest of the industry. AVB is outperformed by 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.12
Quick Ratio 0.12
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 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • AVB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.64%.
  • AVB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.64% yearly.
EPS 1Y (TTM)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.93%

3.2 Future

  • Based on estimates for the next years, AVB will show a decrease in Earnings Per Share. The EPS will decrease by -3.07% on average per year.
  • Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y-28.27%
EPS Next 2Y-13.46%
EPS Next 3Y-7.99%
EPS Next 5Y-3.07%
Revenue Next Year3.63%
Revenue Next 2Y4.32%
Revenue Next 3Y2.19%
Revenue Next 5Y5.64%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.04, the valuation of AVB can be described as rather expensive.
  • 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 (26.98), we can say AVB is valued inline with the index average.
  • AVB is valuated quite expensively with a Price/Forward Earnings ratio of 33.51.
  • 90.00% of the companies in the same industry are more expensive than AVB, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, AVB is valued at the same level.
Industry RankSector Rank
PE 24.04
Fwd PE 33.51
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 65.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.65
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

  • AVB has a very decent profitability rating, which may justify a higher PE ratio.
  • AVB's earnings are expected to decrease with -7.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.18
EPS Next 2Y-13.46%
EPS Next 3Y-7.99%

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

6

5. Dividend

5.1 Amount

  • AVB has a Yearly Dividend Yield of 4.01%, which is a nice return.
  • Compared to an average industry Dividend Yield of 42.55, AVB is paying slightly less dividend.
  • AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 4.01%

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
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

  • 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-13.46%
EPS Next 3Y-7.99%
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 0 500M -500M 1B
AVB Dividend Payout.AVB Dividend Payout, showing the Payout Ratio.AVB Dividend Payout.PayoutRetained Earnings

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AVALONBAY COMMUNITIES INC

NYSE:AVB (2/25/2026, 11:54:01 AM)

177.625

+0.04 (+0.03%)

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 Owners96.8%
Inst Owner Change3.45%
Ins Owners0.37%
Ins Owner Change0.13%
Market Cap25.15B
Revenue(TTM)N/A
Net Income(TTM)1.17B
Analysts70.37
Price Target201.76 (13.59%)
Short Float %3.8%
Short Ratio4.58
Dividend
Industry RankSector Rank
Dividend Yield 4.01%
Yearly Dividend6.77
Dividend Growth(5Y)2.45%
DP84.41%
Div Incr Years2
Div Non Decr Years26
Ex-Date03-31
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)-1.63%
PT rev (3m)-4.11%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)1.95%
EPS NY rev (3m)17.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 24.04
Fwd PE 33.51
P/S 8.35
P/FCF N/A
P/OCF 15.72
P/B 2.11
P/tB 2.11
EV/EBITDA 18.65
EPS(TTM)7.39
EY4.16%
EPS(NY)5.3
Fwd EY2.98%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.36%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)5.18
Graham Number118.4
Profitability
Industry RankSector 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 RankSector 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 1.77
F-Score6
WACC7.08%
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)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
EPS Next Y-28.27%
EPS Next 2Y-13.46%
EPS Next 3Y-7.99%
EPS Next 5Y-3.07%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.93%
Revenue Next Year3.63%
Revenue Next 2Y4.32%
Revenue Next 3Y2.19%
Revenue Next 5Y5.64%
EBIT growth 1Y-0.11%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year79.4%
EBIT Next 3Y24.98%
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 7 / 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 24.04 and the Price/Book (PB) ratio is 2.11.


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 -28.27% in the next year.