DB:FGA

Stock Analysis Report

American Campus Communities

Executive Summary

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States.

Rewards

Trading at 25.8% below its fair value

Earnings are forecast to grow 15.91% per year

Pays a high and reliable dividend of 4.09%

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

6 star dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has American Campus Communities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FGA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

FGA

-0.8%

DE REITs

-2.4%

DE Market


1 Year Return

8.0%

FGA

32.7%

DE REITs

11.8%

DE Market

Return vs Industry: FGA underperformed the German REITs industry which returned 32.9% over the past year.

Return vs Market: FGA underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

FGAIndustryMarket
7 Day2.4%-0.8%-2.4%
30 Day2.4%4.3%-1.1%
90 Day-4.5%5.3%3.0%
1 Year12.4%8.0%37.0%32.7%15.3%11.8%
3 Year7.3%-5.2%41.4%21.3%14.4%4.4%
5 Year34.7%10.4%41.7%11.2%23.8%7.0%

Price Volatility Vs. Market

How volatile is American Campus Communities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is American Campus Communities undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FGA (€41) is trading below our estimate of fair value (€55.25)

Significantly Below Fair Value: FGA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FGA is poor value based on its PE Ratio (59.5x) compared to the REITs industry average (8.9x).

PE vs Market: FGA is poor value based on its PE Ratio (59.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: FGA is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: FGA is overvalued based on its PB Ratio (1.9x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is American Campus Communities forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FGA's forecast earnings growth (15.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: FGA's earnings (11.6% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: FGA's earnings are forecast to grow, but not significantly.

Revenue vs Market: FGA's revenue (2% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: FGA's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FGA's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has American Campus Communities performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FGA has a large one-off gain of $26.9M impacting its September 30 2019 financial results.

Growing Profit Margin: FGA's current net profit margins (11.4%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: FGA's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: FGA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FGA had negative earnings growth (-0.9%) over the past year, making it difficult to compare to the REITs industry average (96.7%).


Return on Equity

High ROE: FGA's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Campus Communities's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FGA has a high level of physical assets or inventory.

Debt Coverage by Assets: FGA's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: FGA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FGA has a sufficient allowance for bad loans.

Low Risk Liabilities: FGA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FGA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FGA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FGA has an appropriate level of bad loans.


Next Steps

Dividend

What is American Campus Communities's current dividend yield, its reliability and sustainability?

4.01%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.6%industryaverage2.9%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: FGA's dividend (4.09%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: FGA's dividend (4.09%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: FGA's dividends per share have been stable in the past 10 years.

Growing Dividend: FGA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.7%), FGA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FGA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

What is the CEO of American Campus Communities's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Bill Bayless (55yo)

16.3yrs

Tenure

US$4,672,998

Compensation

Mr. William C. Bayless, Jr., also known as Bill, has been Chief Executive Officer of American Campus Communities, Inc. (“American Campus”) since October 2003 and has served on its Board of Directors since  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD4.67M) is above average for companies of similar size in the German market ($USD3.55M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.0yrs

Average Tenure

47yo

Average Age

Experienced Management: FGA's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: FGA's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€441,57728 Oct 19
Jorge de Cárdenas
EntityIndividual
Role
Chief Technology Officer
Executive VP & CTO
Shares9,788
Max Price€45.11
Sell€536,14601 Oct 19
Oliver Luck
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,216
Max Price€43.89

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Brian Winger (51yo)

    General Counsel

    • Tenure: 10.9yrs
  • Jason Wills (47yo)

    Chief Marketing Officer

    • Tenure: 2yrs
  • Bill Bayless (55yo)

    CEO & Director

    • Tenure: 16.3yrs
    • Compensation: US$4.67m
  • Kim Voss (43yo)

    Executive VP

    • Tenure: 3yrs
  • Jim Hopke (57yo)

    President

    • Tenure: 3yrs
    • Compensation: US$1.98m
  • William Talbot (44yo)

    Executive VP & Chief Investment Officer

    • Tenure: 7.2yrs
    • Compensation: US$1.90m
  • Jorge de Cárdenas (55yo)

    Executive VP & CTO

    • Tenure: 7.8yrs
  • Daniel Perry (45yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.69m
  • Jennifer Beese (45yo)

    Executive VP & COO

    • Tenure: 3yrs
    • Compensation: US$1.73m
  • Ryan Dennison

    SVP, Capital Markets & Investor Relations

    • Tenure: 7yrs

Board Members

  • Steve Dawson (62yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$207.50k
  • John Rippel (64yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$304.67k
  • Ed Lowenthal (75yo)

    Independent Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$255.00k
  • Bill Bayless (55yo)

    CEO & Director

    • Tenure: 16.3yrs
    • Compensation: US$4.67m
  • Cydney Donnell (59yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$200.00k
  • Pat Oles (64yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$185.00k
  • Oliver Luck (59yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$197.00k
  • Mary Egan (51yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$154.95k
  • Carla Piñeyro Sublett

    Independent Director

    • Tenure: 0.5yrs

Company Information

American Campus Communities, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Campus Communities, Inc.
  • Ticker: FGA
  • Exchange: DB
  • Founded: 1993
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$6.473b
  • Market Cap: US$5.844b
  • Listing Market Cap: US$5.873b
  • Shares outstanding: 138.01m
  • Website: https://www.americancampus.com

Number of Employees


Location

  • American Campus Communities, Inc.
  • 12700 Hill Country Boulevard
  • Suite T-200
  • Austin
  • Texas
  • 78738
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACCNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2004
FGADB (Deutsche Boerse AG)YesCommon StockDEEURAug 2004

Biography

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of September 30, 2019, American Campus Communities owned 168 student housing properties containing approximately 113,400 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 205 properties with approximately 140,300 beds. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 21:12
End of Day Share Price2020/01/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.