AVALONBAY COMMUNITIES INC (AVB) Fundamental Analysis & Valuation

NYSE:AVB • US0534841012

Current stock price

161.37 USD
-3.87 (-2.34%)
At close:
161.37 USD
0 (0%)
After Hours:

This AVB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AVB Profitability Analysis

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.
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 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • AVB has a better Return On Assets (4.73%) than 75.00% of its industry peers.
  • AVB has a better Return On Equity (9.04%) than 70.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.43%, AVB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AVB is in line with the industry average of 2.74%.
Industry RankSector Rank
ROA 4.73%
ROE 9.04%
ROIC 3.43%
ROA(3y)4.78%
ROA(5y)4.99%
ROE(3y)8.65%
ROE(5y)9.04%
ROIC(3y)3.53%
ROIC(5y)3.26%
AVB Yearly ROA, ROE, ROICAVB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • AVB has a better Profit Margin (34.51%) than 80.00% of its industry peers.
  • In the last couple of years the Profit Margin of AVB has remained more or less at the same level.
  • The Operating Margin of AVB (30.25%) is better than 90.00% of its industry peers.
  • In the last couple of years the Operating Margin of AVB has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 63.14%, AVB belongs to the top of the industry, outperforming 90.00% 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 RankSector Rank
OM 30.25%
PM (TTM) 34.51%
GM 63.14%
OM growth 3Y-0.04%
OM growth 5Y-0.41%
PM growth 3Y-7.61%
PM growth 5Y-0.78%
GM growth 3Y-0.74%
GM growth 5Y-0.34%
AVB Yearly Profit, Operating, Gross MarginsAVB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. AVB Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVB is destroying value.
  • AVB has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, AVB has about the same amount of shares outstanding.
  • Compared to 1 year ago, AVB has a worse debt to assets ratio.
AVB Yearly Shares OutstandingAVB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.57, we must say that AVB is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.57, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • AVB has a Debt/Equity ratio of 0.81. This is a neutral value indicating AVB is somewhat dependend on debt financing.
  • AVB's Debt to Equity ratio of 0.81 is fine compared to the rest of the industry. AVB outperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Altman-Z 1.57
ROIC/WACC0.48
WACC7.11%
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 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • AVB has a Current Ratio of 0.19. 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 Current ratio of 0.19. This is in the lower half of the industry: AVB underperforms 70.00% of its industry peers.
  • AVB has a Quick Ratio of 0.19. 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 0.19 is on the low side compared to the rest of the industry. AVB is outperformed by 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
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 2025 200M 400M 600M 800M 1B

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

3

3. AVB Growth Analysis

3.1 Past

  • AVB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.64%.
  • The Earnings Per Share has been growing slightly by 4.64% on average over the past years.
  • Looking at the last year, AVB shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
  • AVB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.73% yearly.
EPS 1Y (TTM)-2.64%
EPS 3Y1.53%
EPS 5Y4.64%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.93%

3.2 Future

  • The Earnings Per Share is expected to decrease by -3.07% on average over the next years.
  • 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-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue Next Year4.02%
Revenue Next 2Y4.62%
Revenue Next 3Y2.59%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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. AVB Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.84 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.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, AVB is valued at the same level.
  • The Price/Forward Earnings ratio is 31.73, which means the current valuation is very expensive for AVB.
  • Based on the Price/Forward Earnings ratio, AVB is valued cheaper than 90.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. AVB is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 21.84
Fwd PE 31.73
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • AVB's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.62
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.
  • A cheap valuation may be justified as AVB's earnings are expected to decrease with -8.66% in the coming years.
PEG (NY)N/A
PEG (5Y)4.7
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%

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

5

5. AVB Dividend Analysis

5.1 Amount

  • AVB has a Yearly Dividend Yield of 4.16%, which is a nice return.
  • AVB's Dividend Yield is slightly below the industry average, which is at 46.07.
  • AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 4.16%

5.2 History

  • The dividend of AVB has a limited annual growth rate of 2.26%.
  • 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)2.26%
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 94.57% of its income as dividend. 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.
DP94.57%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
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 2025 0 500M -500M 1B
AVB Dividend Payout.AVB Dividend Payout, showing the Payout Ratio.AVB Dividend Payout.PayoutRetained Earnings

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AVB Fundamentals: All Metrics, Ratios and Statistics

AVALONBAY COMMUNITIES INC

NYSE:AVB (3/20/2026, 8:04:00 PM)

After market: 161.37 0 (0%)

161.37

-3.87 (-2.34%)

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 Owners99.5%
Inst Owner Change12.2%
Ins Owners0.35%
Ins Owner Change8.43%
Market Cap22.60B
Revenue(TTM)3.04B
Net Income(TTM)1.05B
Analysts69.63
Price Target199.72 (23.77%)
Short Float %3.36%
Short Ratio4.08
Dividend
Industry RankSector Rank
Dividend Yield 4.16%
Yearly Dividend7.03
Dividend Growth(5Y)2.26%
DP94.57%
Div Incr Years2
Div Non Decr Years26
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.89%
Min EPS beat(2)-14.25%
Max EPS beat(2)84.04%
EPS beat(4)3
Avg EPS beat(4)35.14%
Min EPS beat(4)-14.25%
Max EPS beat(4)84.04%
EPS beat(8)7
Avg EPS beat(8)37.91%
EPS beat(12)8
Avg EPS beat(12)24.98%
EPS beat(16)11
Avg EPS beat(16)30.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)-0.76%
Revenue beat(8)0
Avg Revenue beat(8)-0.79%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)1
Avg Revenue beat(16)-2.13%
PT rev (1m)-1.01%
PT rev (3m)-3.36%
EPS NQ rev (1m)-6.07%
EPS NQ rev (3m)-7.34%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-7.72%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.75%
Valuation
Industry RankSector Rank
PE 21.84
Fwd PE 31.73
P/S 7.43
P/FCF N/A
P/OCF 13.53
P/B 1.95
P/tB 1.95
EV/EBITDA 17.62
EPS(TTM)7.39
EY4.58%
EPS(NY)5.09
Fwd EY3.15%
FCF(TTM)-3.47
FCFYN/A
OCF(TTM)11.93
OCFY7.39%
SpS21.71
BVpS82.89
TBVpS82.89
PEG (NY)N/A
PEG (5Y)4.7
Graham Number117.4
Profitability
Industry RankSector Rank
ROA 4.73%
ROE 9.04%
ROCE 4.34%
ROIC 3.43%
ROICexc 3.46%
ROICexgc 3.46%
OM 30.25%
PM (TTM) 34.51%
GM 63.14%
FCFM N/A
ROA(3y)4.78%
ROA(5y)4.99%
ROE(3y)8.65%
ROE(5y)9.04%
ROIC(3y)3.53%
ROIC(5y)3.26%
ROICexc(3y)3.57%
ROICexc(5y)3.31%
ROICexgc(3y)3.57%
ROICexgc(5y)3.32%
ROCE(3y)4.46%
ROCE(5y)4.12%
ROICexgc growth 3Y1.85%
ROICexgc growth 5Y2.21%
ROICexc growth 3Y1.92%
ROICexc growth 5Y2.24%
OM growth 3Y-0.04%
OM growth 5Y-0.41%
PM growth 3Y-7.61%
PM growth 5Y-0.78%
GM growth 3Y-0.74%
GM growth 5Y-0.34%
F-Score5
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Debt/EBITDA 5.1
Cap/Depr 236.11%
Cap/Sales 70.92%
Interest Coverage 3.89
Cash Conversion 91.16%
Profit Quality N/A
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z 1.57
F-Score5
WACC7.11%
ROIC/WACC0.48
Cap/Depr(3y)195.87%
Cap/Depr(5y)199.24%
Cap/Sales(3y)57.94%
Cap/Sales(5y)61.12%
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-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y5.45%
Revenue growth 5Y5.73%
Sales Q2Q%3.93%
Revenue Next Year4.02%
Revenue Next 2Y4.62%
Revenue Next 3Y2.59%
Revenue Next 5Y5.64%
EBIT growth 1Y0.44%
EBIT growth 3Y5.41%
EBIT growth 5Y5.3%
EBIT Next Year89.25%
EBIT Next 3Y28.56%
EBIT Next 5Y18.72%
FCF growth 1Y-8464.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.93%
OCF growth 3Y5.53%
OCF growth 5Y6.5%

AVALONBAY COMMUNITIES INC / AVB Fundamental Analysis 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 21.84 and the Price/Book (PB) ratio is 1.95.


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 -31.18% in the next year.