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. While UDR is still in line with the averages on profitability rating, there are concerns on its financial health. UDR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UDR had positive earnings in the past year.
In the past year UDR had a positive cash flow from operations.
UDR had positive earnings in each of the past 5 years.
UDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UDR (1.10%) is comparable to the rest of the industry.
The Return On Equity of UDR (3.55%) is better than 65.00% of its industry peers.
With a Return On Invested Capital value of 2.30%, UDR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UDR is in line with the industry average of 2.62%.
The last Return On Invested Capital (2.30%) for UDR is above the 3 year average (2.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.55% | ||
| ROIC | 2.3% |
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
The Profit Margin of UDR (7.04%) is comparable to the rest of the industry.
UDR's Profit Margin has declined in the last couple of years.
The Operating Margin of UDR (17.34%) is worse than 60.00% of its industry peers.
UDR's Operating Margin has declined in the last couple of years.
The Gross Margin of UDR (65.39%) is better than 90.00% of its industry peers.
UDR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.34% | ||
| PM (TTM) | 7.04% | ||
| GM | 65.39% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UDR is destroying value.
UDR has less shares outstanding than it did 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 0.66. This is a bad value and indicates that UDR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of UDR (0.66) is worse than 60.00% of its industry peers.
The Debt to FCF ratio of UDR is 10.70, which is on the high side as it means it would take UDR, 10.70 years of fcf income to pay off all of its debts.
UDR has a better Debt to FCF ratio (10.70) than 85.00% of its industry peers.
UDR has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
UDR's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. UDR is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.7 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.33
WACC7.06%
2.3 Liquidity
UDR has a Current 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 Current ratio, with a value of 0.00, UDR is doing worse than 95.00% of the companies in the same industry.
A Quick Ratio of 0.00 indicates that UDR may have some problems paying its short term obligations.
With a Quick ratio value of 0.00, UDR is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
| 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 -74.07%.
The earnings per share for UDR have been decreasing by -16.61% on average. This is quite bad
Looking at the last year, UDR shows a small growth in Revenue. The Revenue has grown by 2.35% in the last year.
The Revenue has been growing slightly by 7.73% on average over the past years.
EPS 1Y (TTM)-74.07%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%76.92%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%1.98%
3.2 Future
The Earnings Per Share is expected to grow by 42.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y133.87%
EPS Next 2Y56.34%
EPS Next 3Y42.56%
EPS Next 5YN/A
Revenue Next Year2.26%
Revenue Next 2Y2.88%
Revenue Next 3Y3.43%
Revenue Next 5Y3.22%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 115.43 indicates a quite expensive valuation of UDR.
UDR's Price/Earnings is on the same level as the industry average.
UDR is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 66.12, which means the current valuation is very expensive for UDR.
The rest of the industry has a similar Price/Forward Earnings ratio as UDR.
UDR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.43 | ||
| Fwd PE | 66.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UDR is valued a bit more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UDR is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.64 | ||
| EV/EBITDA | 19.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as UDR's earnings are expected to grow with 42.56% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y56.34%
EPS Next 3Y42.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, UDR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.66, UDR has a dividend in line with its industry peers.
UDR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of UDR has a limited annual growth rate of 4.23%.
UDR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
UDR pays out 478.08% of its income as dividend. This is not a sustainable payout ratio.
The dividend of UDR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP478.08%
EPS Next 2Y56.34%
EPS Next 3Y42.56%
40.4
-0.09 (-0.22%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.58%
Inst Owner Change-0.01%
Ins Owners0.47%
Ins Owner Change-0.9%
Market Cap13.38B
Analysts70.71
Price Target47.33 (17.15%)
Short Float %2.16%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend1.67
Dividend Growth(5Y)4.23%
DP478.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.72%
Min EPS beat(2)-130.25%
Max EPS beat(2)96.8%
EPS beat(4)1
Avg EPS beat(4)-22.73%
Min EPS beat(4)-130.25%
Max EPS beat(4)96.8%
EPS beat(8)3
Avg EPS beat(8)83.73%
EPS beat(12)4
Avg EPS beat(12)48.19%
EPS beat(16)8
Avg EPS beat(16)126.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)4
Avg Revenue beat(16)-0.37%
PT rev (1m)0.88%
PT rev (3m)0.05%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-5.19%
EPS NY rev (1m)3.99%
EPS NY rev (3m)12.68%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.43 | ||
| Fwd PE | 66.12 | ||
| P/S | 7.97 | ||
| P/FCF | 24.64 | ||
| P/OCF | 15.47 | ||
| P/B | 4.02 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 19.34 |
EPS(TTM)0.35
EY0.87%
EPS(NY)0.61
Fwd EY1.51%
FCF(TTM)1.64
FCFY4.06%
OCF(TTM)2.61
OCFY6.47%
SpS5.07
BVpS10.05
TBVpS10.05
PEG (NY)0.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.55% | ||
| ROCE | 2.98% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.3% | ||
| ROICexgc | 2.34% | ||
| OM | 17.34% | ||
| PM (TTM) | 7.04% | ||
| GM | 65.39% | ||
| FCFM | 32.34% |
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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 10.7 | ||
| Debt/EBITDA | 5.74 | ||
| Cap/Depr | 46.71% | ||
| Cap/Sales | 19.18% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 88.22% | ||
| Profit Quality | 459.07% | ||
| Current Ratio | 0 | ||
| Quick Ratio | 0 | ||
| Altman-Z | 0.66 |
F-Score5
WACC7.06%
ROIC/WACC0.33
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)-74.07%
EPS 3Y-19.54%
EPS 5Y-16.61%
EPS Q2Q%76.92%
EPS Next Y133.87%
EPS Next 2Y56.34%
EPS Next 3Y42.56%
EPS Next 5YN/A
Revenue 1Y (TTM)2.35%
Revenue growth 3Y9.01%
Revenue growth 5Y7.73%
Sales Q2Q%1.98%
Revenue Next Year2.26%
Revenue Next 2Y2.88%
Revenue Next 3Y3.43%
Revenue Next 5Y3.22%
EBIT growth 1Y1.92%
EBIT growth 3Y27.76%
EBIT growth 5Y5.51%
EBIT Next Year236.38%
EBIT Next 3Y53.18%
EBIT Next 5Y39.38%
FCF growth 1Y856.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.64%
OCF growth 3Y9.71%
OCF growth 5Y6.81%