AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVB - US0534841012 - REIT
179.69 USD
-1.83 (-1.01%)
We assign a fundamental rating of 5 out of 10 to AVB. AVB was compared to 20 industry peers in the Residential REITs industry. While AVB belongs to the best of the industry regarding profitability, there are concerns on its financial health. AVB is quite expensive at the moment. 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.
In the past 5 years AVB always reported a positive cash flow from operatings.
1.2 Ratios
AVB has a better Return On Assets (5.31%) than 75.00% of its industry peers.
AVB has a Return On Equity of 9.77%. This is in the better half of the industry: AVB outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.46%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 38.71%, AVB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AVB has grown nicely.
The Operating Margin of AVB (30.35%) is better than 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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVB is destroying value.
Compared to 1 year ago, AVB has about the same amount of shares outstanding.
Compared to 5 years ago, AVB has more shares outstanding
AVB has a better debt/assets ratio than last year.
2.2 Solvency
AVB has an Altman-Z score of 1.81. This is a bad value and indicates that AVB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AVB (1.81) is better than 90.00% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACC0.48
WACC7.15%
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.
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.
Looking at the Quick ratio, with a value of 0.12, AVB is doing worse than 70.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
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.
Based on estimates for the next years, AVB will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y-18.52%
EPS Next 2Y-14.5%
EPS Next 3Y-7.93%
EPS Next 5Y-4.5%
Revenue Next Year4.71%
Revenue Next 2Y4.83%
Revenue Next 3Y5.02%
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
AVB is valuated rather expensively with a Price/Earnings ratio of 21.91.
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.
AVB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.37.
AVB is valuated quite expensively with a Price/Forward Earnings ratio of 32.38.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, AVB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 32.38 |
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 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.96 |
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 -7.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.58
EPS Next 2Y-14.5%
EPS Next 3Y-7.93%
5. Dividend
5.1 Amount
AVB has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
AVB's Dividend Yield is slightly below the industry average, which is at 7.09.
Compared to an average S&P500 Dividend Yield of 2.32, AVB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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.
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-14.5%
EPS Next 3Y-7.93%
NYSE:AVB (12/4/2025, 12:52:51 PM)
179.69
-1.83 (-1.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.39%
Inst Owner Change2.85%
Ins Owners0.37%
Ins Owner Change-1.36%
Market Cap25.44B
Revenue(TTM)3.01B
Net Income(TTM)1.17B
Analysts71.85
Price Target210.42 (17.1%)
Short Float %3.37%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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)-4.26%
PT rev (3m)-5.83%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 32.38 | ||
| P/S | 8.44 | ||
| P/FCF | N/A | ||
| P/OCF | 15.91 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 18.96 |
EPS(TTM)8.2
EY4.56%
EPS(NY)5.55
Fwd EY3.09%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.29%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)3.58
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 | 1.81 |
F-Score6
WACC7.15%
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-18.52%
EPS Next 2Y-14.5%
EPS Next 3Y-7.93%
EPS Next 5Y-4.5%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y8.28%
Revenue growth 5Y4.62%
Sales Q2Q%4.67%
Revenue Next Year4.71%
Revenue Next 2Y4.83%
Revenue Next 3Y5.02%
Revenue Next 5Y6.12%
EBIT growth 1Y-0.11%
EBIT growth 3Y14.34%
EBIT growth 5Y1.82%
EBIT Next Year80.15%
EBIT Next 3Y26.5%
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 2 / 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%.