AVALONBAY COMMUNITIES INC (AVB) Stock Fundamental Analysis

NYSE:AVB • US0534841012

177.23 USD
-2.44 (-1.36%)
At close: Feb 27, 2026
177.23 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

AVB gets a fundamental rating of 3 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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year AVB was profitable.
  • AVB had a positive operating cash flow in the past year.
  • Of the past 5 years AVB 4 years were profitable.
  • 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

  • With a decent Return On Assets value of 5.31%, AVB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 9.77%, AVB is in the better half of 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.
  • The Average Return On Invested Capital over the past 3 years 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 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

  • With an excellent Profit Margin value of 38.71%, AVB belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • AVB's Profit Margin has improved in the last couple of years.
  • 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.
  • 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.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVB 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.
  • The Altman-Z score of AVB (1.77) 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.
  • The Debt to Equity ratio of AVB (0.73) is better than 85.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.77
ROIC/WACC0.49
WACC7.03%
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

  • 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.
  • Looking at the Current ratio, with a value of 0.12, AVB is doing worse than 70.00% of the companies in the same industry.
  • 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 has a worse Quick ratio (0.12) than 65.00% 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%.
  • Measured over the past 5 years, AVB shows a small growth in Earnings Per Share. The EPS has been growing by 4.64% on average per year.
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

  • The Earnings Per Share is expected to decrease by -3.07% on average over the next years.
  • AVB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • AVB is valuated rather expensively with a Price/Earnings ratio of 23.98.
  • Compared to the rest of the industry, the Price/Earnings ratio of AVB indicates a somewhat cheap valuation: AVB is cheaper than 80.00% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. AVB is around the same levels.
  • Based on the Price/Forward Earnings ratio of 33.44, the valuation of AVB can be described as expensive.
  • Based on the Price/Forward Earnings ratio, AVB is valued cheaper than 90.00% of the companies in the same industry.
  • AVB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.98
Fwd PE 33.44
AVB Price Earnings VS Forward Price EarningsAVB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 18.63
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 -7.99% in the coming years.
PEG (NY)N/A
PEG (5Y)5.17
EPS Next 2Y-13.46%
EPS Next 3Y-7.99%

More info and screens

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

5

5. Dividend

5.1 Amount

  • AVB has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 44.03, AVB is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, AVB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.96%

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.
  • 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-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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Find the best dividend stocksShow peers with best dividend

AVALONBAY COMMUNITIES INC

NYSE:AVB (2/27/2026, 8:04:00 PM)

After market: 177.23 0 (0%)

177.23

-2.44 (-1.36%)

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 Cap25.09B
Revenue(TTM)N/A
Net Income(TTM)1.17B
Analysts70.37
Price Target199.72 (12.69%)
Short Float %3.8%
Short Ratio4.58
Dividend
Industry RankSector Rank
Dividend Yield 3.96%
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)-2.62%
PT rev (3m)-5.08%
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 23.98
Fwd PE 33.44
P/S 8.33
P/FCF N/A
P/OCF 15.69
P/B 2.1
P/tB 2.1
EV/EBITDA 18.63
EPS(TTM)7.39
EY4.17%
EPS(NY)5.3
Fwd EY2.99%
FCF(TTM)-4.12
FCFYN/A
OCF(TTM)11.3
OCFY6.37%
SpS21.28
BVpS84.31
TBVpS84.31
PEG (NY)N/A
PEG (5Y)5.17
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
WACC7.03%
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 3Y24.63%
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 3 / 10 to AVB.


What is the valuation status of AVALONBAY COMMUNITIES INC (AVB) stock?

ChartMill assigns a valuation rating of 2 / 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 23.98 and the Price/Book (PB) ratio is 2.1.


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.