DB:WV8

Stock Analysis Report

AvalonBay Communities

Executive Summary

As of March 31, 2019, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 85,313 apartment homes in 12 states and the District of Columbia, of which 19 communities were under development and nine communities were under redevelopment.

Snowflake

Fundamentals

Established dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

DB:WV8

-0.8%

DE REITs

-0.4%

DE Market


1 Year Return

23.7%

DB:WV8

12.8%

DE REITs

-6.2%

DE Market

WV8 outperformed the REITs industry which returned 11.2% over the past year.

WV8 outperformed the Market in Germany which returned -5.8% over the past year.


Share holder returns

WV8IndustryMarket
7 Day-1.3%-0.8%-0.4%
30 Day-0.2%2.1%0.7%
90 Day2.8%3.3%1.8%
1 Year27.9%23.7%16.9%12.8%-3.3%-6.2%
3 Year24.7%14.1%35.8%20.0%24.7%13.9%
5 Year103.7%75.7%69.6%36.2%24.9%7.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is AvalonBay Communities undervalued based on future cash flows and its price relative to the stock market?

6%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AvalonBay Communities's share price is below the future cash flow value, but not at a moderate discount (< 20%).

AvalonBay Communities's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

AvalonBay Communities is overvalued based on earnings compared to the DE REITs industry average.

AvalonBay Communities is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

AvalonBay Communities is poor value based on expected growth next year.


Price Based on Value of Assets

AvalonBay Communities is overvalued based on assets compared to the DE REITs industry average.


Next Steps

Future Growth

How is AvalonBay Communities expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AvalonBay Communities's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

AvalonBay Communities's earnings are expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

AvalonBay Communities's revenue growth is positive but not above the Germany market average.

AvalonBay Communities's earnings growth is positive but not above the Germany market average.

AvalonBay Communities's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

AvalonBay Communities is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has AvalonBay Communities performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AvalonBay Communities's year on year earnings growth rate has been positive over the past 5 years.

AvalonBay Communities's 1-year earnings growth exceeds its 5-year average (28.2% vs 13.5%)

AvalonBay Communities's earnings growth has not exceeded the DE REITs industry average in the past year (28.2% vs 69.6%).


Return on Equity

AvalonBay Communities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AvalonBay Communities used its assets less efficiently than the DE REITs industry average last year based on Return on Assets.


Return on Capital Employed

AvalonBay Communities's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AvalonBay Communities's financial position?


Financial Position Analysis

AvalonBay Communities's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

AvalonBay Communities's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

AvalonBay Communities's level of debt (65.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (74% vs 65.8% today).

Debt is not well covered by operating cash flow (19.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

3.08%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase AvalonBay Communities before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

AvalonBay Communities's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).

AvalonBay Communities's dividend is below the markets top 25% of dividend payers in Germany (3.81%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (218.3x coverage).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Tim Naughton (57yo)

7.4yrs

Tenure

US$10,079,434

Compensation

Mr. Timothy J. Naughton, also known as Tim, has been the Chief Executive Officer of AvalonBay Communities Inc. since January 1, 2012 and has been its President since February 23, 2015. Mr. Naughton serves  ...


CEO Compensation Analysis

Tim's remuneration is higher than average for companies of similar size in Germany.

Tim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.4yrs

Average Tenure

55yo

Average Age

The average tenure for the AvalonBay Communities management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.6yrs

Average Tenure

59yo

Average Age

The tenure for the AvalonBay Communities board of directors is about average.


Insider Trading

AvalonBay Communities individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€461,88612 Jun 19
William McLaughlin
EntityIndividual
Shares2,500
Max Price€184.75
Sell€927,03512 Jun 19
Leo Horey
EntityIndividual
Role
Chief Administrative Officer
Shares5,000
Max Price€185.54
Sell€274,85510 Jun 19
Edward Schulman
EntityIndividual
Role
Executive VP
Shares1,500
Max Price€183.24
Sell€45,83428 May 19
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Shares250
Max Price€183.34
Sell€202,08808 May 19
Keri Shea
EntityIndividual
Shares1,131
Max Price€178.68
Sell€270,66906 May 19
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Shares1,500
Max Price€180.45
Sell€369,68415 Mar 19
Edward Schulman
EntityIndividual
Role
Executive VP
Shares2,100
Max Price€176.04
Sell€441,87814 Mar 19
William McLaughlin
EntityIndividual
Shares2,500
Max Price€176.76
Sell€3,872,65711 Mar 19
Timothy Naughton
EntityIndividual
Role
Chairman
Chairman of the Board
Shares22,164
Max Price€175.21
Sell€863,76511 Mar 19
Stephen Wilson
EntityIndividual
Role
Executive Vice President of Development - West Coast
Shares4,956
Max Price€174.29
Sell€874,00807 Mar 19
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Shares5,000
Max Price€174.80
Sell€608,03207 Mar 19
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Shares3,500
Max Price€173.75
Sell€867,74305 Mar 19
Leo Horey
EntityIndividual
Role
Chief Administrative Officer
Shares5,000
Max Price€174.35
Sell€6,46506 Dec 18
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Shares39
Max Price€165.77
Sell€476,18127 Nov 18
Stephen Wilson
EntityIndividual
Role
Executive Vice President of Development - West Coast
Shares2,905
Max Price€163.92
Sell€303,82421 Nov 18
Keri Shea
EntityIndividual
Shares1,880
Max Price€161.61
Sell€326,33021 Nov 18
Leo Horey
EntityIndividual
Role
Chief Administrative Officer
Shares2,000
Max Price€163.16
Sell€225,59520 Nov 18
Edward Schulman
EntityIndividual
Role
Executive VP
Shares1,400
Max Price€161.14
Sell€158,84009 Nov 18
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Shares1,000
Max Price€158.84
Sell€235,93007 Nov 18
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Shares1,500
Max Price€157.29
Sell€658,48928 Aug 18
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Shares4,200
Max Price€156.78
Sell€310,09006 Aug 18
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Shares2,000
Max Price€155.04

Ownership Breakdown


Management Team

  • Edward Schulman (55yo)

    Executive VP

    • Tenure: 20.3yrs
    • Compensation: $1.06m
  • Jason Reilley

    Vice President of Investor Relations

  • Sean Breslin (51yo)

    Chief Operating Officer

    • Tenure: 4.4yrs
    • Compensation: $3.49m
  • Tim Naughton (57yo)

    Chairman

    • Tenure: 7.4yrs
    • Compensation: $10.08m
  • Ronald Ladell (56yo)

    Senior Vice President of Development - New Jersey

    • Tenure: 17.4yrs
  • Kevin O'Shea (52yo)

    Chief Financial Officer

    • Tenure: 5.0yrs
    • Compensation: $3.27m
  • Matt Birenbaum (52yo)

    Chief Investment Officer

    • Tenure: 4.4yrs
    • Compensation: $3.45m
  • Steve Wilson (61yo)

    Executive Vice President of Development - West Coast

    • Tenure: 9.3yrs
    • Compensation: $2.53m
  • Leo Horey (55yo)

    Chief Administrative Officer

    • Tenure: 7.2yrs
    • Compensation: $3.14m
  • Kurt Conway (58yo)

    Senior Vice President of Brand Strategy & Marketing

    • Tenure: 8.8yrs

Board Members

  • H. Sarles (73yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: $270.05k
  • Ron Havner (60yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: $225.15k
  • Terry Brown (56yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: $225.15k
  • Richard Lieb (58yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: $225.05k
  • Susan Swanezy (59yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: $225.15k
  • Steve Hills (59yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: $225.05k
  • Tim Naughton (57yo)

    Chairman

    • Tenure: 6.1yrs
    • Compensation: $10.08m
  • Ed Walter (62yo)

    Lead Independent Director

    • Tenure: 0.1yrs
    • Compensation: $245.05k
  • Glyn Aeppel (59yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: $240.05k
  • Alan Buckelew (69yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: $245.05k

Company Information

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


Key Information

  • Name: AvalonBay Communities, Inc.
  • Ticker: WV8
  • Exchange: DB
  • Founded: 1978
  • Industry: residential reits
  • Sector: real estate
  • Implied Market Cap: US$28.948b
  • Market Cap: US$24.971b
  • Listing Market Cap: US$25.428b
  • Shares outstanding: 139.08m
  • Website: Click here

Number of Employees


Location

  • AvalonBay Communities, Inc.
  • Ballston Tower
  • Suite 800
  • Arlington
  • Virginia
  • 22203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVBNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1994
WV8DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994
0HJOLSE (London Stock Exchange)YesCommon StockGBUSDMar 1994

Biography

As of March 31, 2019, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 85,313 apartment homes in 12 states and the District of Columbia, of which 19 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/26 02:36
End of Day Share Price2019/06/25 00:00
Earnings2019/03/31
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.