UDR INC (UDR) Stock Fundamental Analysis
NYSE:UDR - New York Stock Exchange, Inc. - US9026531049 - REIT - Currency: USD
UDR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of UDR while its profitability can be described as average. UDR is valied quite expensively at the moment, while it does show a decent growth rate. Finally UDR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UDR was profitable.
In the past year UDR had a positive cash flow from operations.
Each year in the past 5 years UDR has been profitable.
UDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.78%, UDR is in line with its industry, outperforming 60.00% of the companies in the same industry.
UDR has a Return On Equity (2.46%) which is in line with its industry peers.
UDR has a Return On Invested Capital (2.21%) which is comparable to the rest of the industry.
UDR had an Average Return On Invested Capital over the past 3 years of 2.04%. This is in line with the industry average of 2.75%.
The last Return On Invested Capital (2.21%) for UDR is above the 3 year average (2.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 2.46% | ||
| ROIC | 2.21% |
ROA(3y)1.8%
ROA(5y)1.47%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)2.04%
ROIC(5y)1.66%
1.3 Margins
UDR has a Profit Margin (5.07%) which is comparable to the rest of the industry.
UDR's Profit Margin has declined in the last couple of years.
UDR has a Operating Margin (16.92%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of UDR has declined.
With an excellent Gross Margin value of 65.38%, UDR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Gross Margin of UDR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 65.38% |
OM growth 3Y17.2%
OM growth 5Y-2.06%
PM growth 3Y-23.44%
PM growth 5Y-20.24%
GM growth 3Y0.34%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UDR is destroying value.
The number of shares outstanding for UDR has been reduced compared to 1 year ago.
Compared to 5 years ago, UDR has more shares outstanding
UDR has a worse debt/assets ratio than last year.
2.2 Solvency
UDR has an Altman-Z score of 0.68. This is a bad value and indicates that UDR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, UDR is doing worse than 60.00% of the companies in the same industry.
The Debt to FCF ratio of UDR is 10.84, which is on the high side as it means it would take UDR, 10.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UDR (10.84) is better than 85.00% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that UDR has dependencies on debt financing.
UDR has a Debt to Equity ratio of 1.64. This is in the lower half of the industry: UDR underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 10.84 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.31
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.00 indicates that UDR may have some problems paying its short term obligations.
UDR has a Current ratio of 0.00. This is amonst the worse of the industry: UDR underperforms 95.00% of its industry peers.
UDR has a Quick Ratio of 0.00. This is a bad value and indicates that UDR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.00, UDR is doing worse than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0 | ||
| Quick Ratio | 0 |
3. Growth
3.1 Past
UDR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.06%.
The earnings per share for UDR have been decreasing by -16.61% on average. This is quite bad
UDR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.72%.
UDR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
EPS 1Y (TTM)-81.06%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%-120%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%2.32%
3.2 Future
Based on estimates for the next years, UDR will show a very strong growth in Earnings Per Share. The EPS will grow by 47.44% on average per year.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y109.07%
EPS Next 2Y60.17%
EPS Next 3Y47.44%
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y3.16%
Revenue Next 3Y3.49%
Revenue Next 5Y4.22%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 165.16, UDR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of UDR is on the same level as its industry peers.
UDR is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 79.00, UDR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UDR is on the same level as its industry peers.
UDR is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 165.16 | ||
| Fwd PE | 79 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than UDR, based on the Enterprise Value to EBITDA ratio.
UDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UDR is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.43 | ||
| EV/EBITDA | 19.64 |
4.3 Compensation for Growth
UDR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UDR's earnings are expected to grow with 47.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y60.17%
EPS Next 3Y47.44%
5. Dividend
5.1 Amount
UDR has a Yearly Dividend Yield of 4.17%, which is a nice return.
UDR's Dividend Yield is comparable with the industry average which is at 4.60.
UDR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of UDR has a limited annual growth rate of 4.23%.
UDR has paid a dividend for at least 10 years, which is a reliable track record.
UDR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.23%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
664.70% of the earnings are spent on dividend by UDR. This is not a sustainable payout ratio.
UDR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP664.7%
EPS Next 2Y60.17%
EPS Next 3Y47.44%
41.29
+0.42 (+1.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0.11%
Ins Owners0.48%
Ins Owner Change-0.9%
Market Cap13.67B
Analysts70.71
Price Target47.31 (14.58%)
Short Float %1.95%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend1.67
Dividend Growth(5Y)4.23%
DP664.7%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-85.91%
Min EPS beat(2)-130.25%
Max EPS beat(2)-41.57%
EPS beat(4)1
Avg EPS beat(4)-40.07%
Min EPS beat(4)-130.25%
Max EPS beat(4)27.44%
EPS beat(8)2
Avg EPS beat(8)70.51%
EPS beat(12)4
Avg EPS beat(12)41.95%
EPS beat(16)8
Avg EPS beat(16)132.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)-0.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.27%
Revenue beat(12)1
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.38%
PT rev (1m)0.62%
PT rev (3m)-0.68%
EPS NQ rev (1m)-26.53%
EPS NQ rev (3m)4.65%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)8.76%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)2.01%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 165.16 | ||
| Fwd PE | 79 | ||
| P/S | 8.18 | ||
| P/FCF | 25.43 | ||
| P/OCF | 15.59 | ||
| P/B | 3.97 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | 19.64 |
EPS(TTM)0.25
EY0.61%
EPS(NY)0.52
Fwd EY1.27%
FCF(TTM)1.62
FCFY3.93%
OCF(TTM)2.65
OCFY6.41%
SpS5.05
BVpS10.4
TBVpS10.4
PEG (NY)1.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 2.46% | ||
| ROCE | 2.88% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 2.25% | ||
| OM | 16.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 65.38% | ||
| FCFM | 32.16% |
ROA(3y)1.8%
ROA(5y)1.47%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)2.04%
ROIC(5y)1.66%
ROICexc(3y)2.04%
ROICexc(5y)1.66%
ROICexgc(3y)2.08%
ROICexgc(5y)1.7%
ROCE(3y)2.67%
ROCE(5y)2.17%
ROICexcg growth 3Y28%
ROICexcg growth 5Y3.06%
ROICexc growth 3Y28.08%
ROICexc growth 5Y3.08%
OM growth 3Y17.2%
OM growth 5Y-2.06%
PM growth 3Y-23.44%
PM growth 5Y-20.24%
GM growth 3Y0.34%
GM growth 5Y-0.92%
F-Score4
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 10.84 | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 48.78% | ||
| Cap/Sales | 20.29% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 634.37% | ||
| Current Ratio | 0 | ||
| Quick Ratio | 0 | ||
| Altman-Z | 0.68 |
F-Score4
WACC7.08%
ROIC/WACC0.31
Cap/Depr(3y)77.75%
Cap/Depr(5y)120.71%
Cap/Sales(3y)33.77%
Cap/Sales(5y)56.24%
Profit Quality(3y)255.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-81.06%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%-120%
EPS Next Y109.07%
EPS Next 2Y60.17%
EPS Next 3Y47.44%
EPS Next 5YN/A
Revenue 1Y (TTM)2.72%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%2.32%
Revenue Next Year2.56%
Revenue Next 2Y3.16%
Revenue Next 3Y3.49%
Revenue Next 5Y4.22%
EBIT growth 1Y-1.42%
EBIT growth 3Y27.76%
EBIT growth 5Y5.51%
EBIT Next Year233.86%
EBIT Next 3Y53.45%
EBIT Next 5Y39%
FCF growth 1Y55.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.31%
OCF growth 3Y9.71%
OCF growth 5Y6.81%