NYSE:ACC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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.


Snowflake Analysis

6 star dividend payer with proven track record.


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: ACC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.7%

ACC

5.5%

US REITs

2.7%

US Market


1 Year Return

-30.3%

ACC

-9.8%

US REITs

9.1%

US Market

Return vs Industry: ACC underperformed the US REITs industry which returned -9.8% over the past year.

Return vs Market: ACC underperformed the US Market which returned 9.1% over the past year.


Shareholder returns

ACCIndustryMarket
7 Day2.7%5.5%2.7%
30 Day-8.5%1.0%4.5%
90 Day-25.6%-10.5%2.3%
1 Year-27.1%-30.3%-6.0%-9.8%11.5%9.1%
3 Year-22.8%-32.3%10.3%-3.4%30.6%22.0%
5 Year2.5%-16.5%40.2%11.2%57.2%39.5%

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

Valuation

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

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACC ($32.3) is trading below our estimate of fair value ($48.42)

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


Price To Earnings Ratio

PE vs Industry: ACC is poor value based on its PE Ratio (33.1x) compared to the REITs industry average (27.4x).

PE vs Market: ACC is poor value based on its PE Ratio (33.1x) compared to the US market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: ACC is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: ACC is good value based on its PB Ratio (1.3x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is American Campus Communities forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACC's forecast earnings growth (5.9% per year) is above the savings rate (2.2%).

Earnings vs Market: ACC's earnings (5.9% per year) are forecast to grow slower than the US market (21.7% per year).

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

Revenue vs Market: ACC's revenue (3.7% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: ACC's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACC's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

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

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACC has a large one-off gain of $49.5M impacting its March 31 2020 financial results.

Growing Profit Margin: ACC's current net profit margins (14.1%) are higher than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: ACC's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: ACC's earnings growth over the past year (12.9%) exceeds its 5-year average (0.6% per year).

Earnings vs Industry: ACC earnings growth over the past year (12.9%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: ACC's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is American Campus Communities's financial position?


Financial Position Analysis

Short Term Liabilities: ACC's short term assets ($221.2M) exceed its short term liabilities ($53.1M).

Long Term Liabilities: ACC's short term assets ($221.2M) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: ACC's debt to equity ratio (105.1%) is considered high.

Reducing Debt: ACC's debt to equity ratio has increased from 93.5% to 105.1% over the past 5 years.

Debt Coverage: ACC's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: ACC's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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

5.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACC's dividend (5.82%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: ACC's dividend (5.82%) is in the top 25% of dividend payers in the US market (4.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.8%), ACC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Bill Bayless (55yo)

16.58yrs

Tenure

US$5,802,845

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 ($USD5.80M) is about average for companies of similar size in the US market ($USD5.90M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Bayless
CEO & Director16.58yrsUS$5.80m0.15% $6.8m
James Hopke
President3.33yrsUS$2.53m0.017% $771.3k
Daniel Perry
Executive VP3.17yrsUS$2.17m0.032% $1.5m
Jennifer Beese
Executive VP & COO3.33yrsUS$2.26m0.014% $665.1k
William Talbot
Executive VP & Chief Investment Officer7.5yrsUS$2.46m0.041% $1.9m
Kim Voss
Executive VP3.33yrsno data0.036% $1.7m
Jorge de Cárdenas
Executive VP & CTO8.17yrsno data0.030% $1.4m
Ryan Dennison
SVP, Capital Markets & Investor Relations7.33yrsno datano data
Brian Winger
General Counsel11.17yrsno datano data
Jason Wills
Chief Marketing Officer2.33yrsno datano data

5.3yrs

Average Tenure

47yo

Average Age

Experienced Management: ACC's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Bayless
CEO & Director16.58yrsUS$5.80m0.15% $6.8m
G. Dawson
Independent Director15.75yrsUS$215.00k0.0073% $335.6k
John Rippel
Independent Director2.17yrsUS$192.50k0.024% $1.1m
Edward Lowenthal
Independent Chairman of the Board4.75yrsUS$262.50k0.015% $709.9k
Cydney Donnell
Independent Director15.75yrsUS$211.25k0.016% $721.0k
C. Oles
Independent Director6yrsUS$192.50k0.0031% $141.7k
Oliver Luck
Independent Director7.42yrsUS$207.50k0.0034% $156.0k
Mary Egan
Independent Director1.67yrsUS$203.50k0.0038% $175.9k
Carla Sublett
Independent Director0.83yrUS$171.90k0.0017% $80.3k

6.0yrs

Average Tenure

59yo

Average Age

Experienced Board: ACC's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ACC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: American Campus Communities, Inc.
  • Ticker: ACC
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$4.616b
  • Market Cap: US$4.442b
  • Shares outstanding: 138.07m
  • 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 March 31, 2020, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 201 properties with approximately 137,900 beds. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 04:38
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.