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.
  • In the past year AVB had a positive cash flow from operations.
  • AVB had positive earnings in each of the past 5 years.
  • In the past 5 years AVB always reported a positive cash flow from operatings.
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

  • With a decent Return On Assets value of 4.73%, AVB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • AVB's Return On Equity of 9.04% is fine compared to the rest of the industry. AVB outperforms 70.00% of its industry peers.
  • AVB's Return On Invested Capital of 3.43% is fine compared to the rest of the industry. AVB outperforms 80.00% 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 2.73%.
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's Profit Margin of 34.51% is fine compared to the rest of the industry. AVB outperforms 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.
  • AVB has a Operating Margin of 30.25%. This is amongst the best in the industry. AVB outperforms 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.
  • AVB has a better Gross Margin (63.14%) than 90.00% of its industry peers.
  • 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

  • AVB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • AVB has less shares outstanding than it did 1 year ago.
  • AVB has about the same amout of shares outstanding than it did 5 years ago.
  • 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 1.53, we must say that AVB is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of AVB (1.53) is better than 85.00% of its industry peers.
  • AVB has a Debt/Equity ratio of 0.81. This is a neutral value indicating AVB is somewhat dependend on debt financing.
  • AVB has a Debt to Equity ratio of 0.81. This is in the better half of the industry: AVB outperforms 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Altman-Z 1.53
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 worse Current ratio (0.19) than 70.00% of its industry peers.
  • A Quick Ratio of 0.19 indicates that AVB may have some problems paying its short term obligations.
  • AVB has a Quick ratio of 0.19. This is in the lower half of the industry: AVB underperforms 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.
  • AVB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
  • 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

  • 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-31.18%
EPS Next 2Y-14.56%
EPS Next 3Y-8.66%
EPS Next 5Y-3.07%
Revenue Next Year3.56%
Revenue Next 2Y4.35%
Revenue Next 3Y2.58%
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

  • The Price/Earnings ratio is 21.84, which indicates a rather expensive current valuation of AVB.
  • 85.00% of the companies in the same industry are more expensive than AVB, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. AVB is around the same levels.
  • A Price/Forward Earnings ratio of 31.73 indicates a quite expensive valuation of AVB.
  • Based on the Price/Forward Earnings ratio, AVB is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, AVB is valued a bit more expensive.
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 17.33
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

  • The decent 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 -8.66% 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

  • With a Yearly Dividend Yield of 4.31%, AVB is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 46.64, AVB is paying slightly less dividend.
  • AVB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.31%

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

  • 94.57% of the earnings are spent on dividend by AVB. 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.
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 Change10.3%
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 4.31%
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)-2.49%
EPS NQ rev (3m)-3.81%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-7.72%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.19%
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 17.33
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 1.53
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 Year3.56%
Revenue Next 2Y4.35%
Revenue Next 3Y2.58%
Revenue Next 5Y5.64%
EBIT growth 1Y0.44%
EBIT growth 3Y5.41%
EBIT growth 5Y5.3%
EBIT Next Year87.8%
EBIT Next 3Y28.23%
EBIT Next 5Y18.53%
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.