ACC

American Campus CommunitiesNYSE:ACC Stock Report

Market Cap

US$6.8b

7D

-2.3%

1Y

34.1%

Updated

19 Sep, 2021

Data

Company Financials +
ACC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health0/6
Dividends6/6

ACC Overview

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

American Campus Communities Competitors

Price History & Performance

Summary of all time highs, changes and price drops for American Campus Communities
Historical stock prices
Current Share PriceUS$48.71
52 Week HighUS$32.85
52 Week LowUS$52.09
Beta0.94
1 Month Change-0.55%
3 Month Change-0.21%
1 Year Change34.11%
3 Year Change15.89%
5 Year Change-4.66%
Change since IPO178.34%

Recent News & Updates

Jul 28

Student Housing: Mask On, Mask Off

American Campus Communities - along with the broader student housing sector - hope for a swift rebound in occupancy this academic year as students at flagship universities return to campus. Two steps forward, one step back. The recent reacceleration in worldwide COVID cases - and resulting "public health" mandates - threaten to delay the complete return of in-person learning. Tale of two Americas: ACC's focus on highly-selective flagship universities across Sunbelt markets - most of which offered in-person classes throughout the pandemic - has proven to be especially critical. ACC reported encouraging Q2 results this week as pre-leasing accelerated significantly to 91.7% for the upcoming year while NOI growth surged 11.6% and its critical Disney development remains on track. While apparent near-term and longer-term risks remain for the student housing asset class, valuations now appear fairly attractive given the robust strength across the broader multifamily housing sector.

Jun 22

Why American Campus Communities May Be Your Smart Buy

American Campus Communities has unique advantages as the largest institutional player in the student housing space. It's set to benefit from universities increasingly seeking avenues to monetize and outsource their aging residences. I also highlight the dividend, balance sheet, valuation, and near-term outlook.

Shareholder Returns

ACCUS REITsUS Market
7D-2.3%-0.3%-0.6%
1Y34.1%32.5%33.8%

Return vs Industry: ACC exceeded the US REITs industry which returned 32.5% over the past year.

Return vs Market: ACC matched the US Market which returned 33.8% over the past year.

Price Volatility

Is ACC's price volatile compared to industry and market?
ACC volatility
ACC Beta0.94
Industry Beta0.82
Market Beta1

Stable Share Price: ACC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ACC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19932,988Bill Baylesshttps://www.americancampus.com

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, 2020, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds.

American Campus Communities Fundamentals Summary

How do American Campus Communities's earnings and revenue compare to its market cap?
ACC fundamental statistics
Market CapUS$6.80b
Earnings (TTM)US$9.24m
Revenue (TTM)US$876.88m

735.6x

P/E Ratio

7.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACC income statement (TTM)
RevenueUS$876.88m
Cost of RevenueUS$427.34m
Gross ProfitUS$449.54m
ExpensesUS$440.30m
EarningsUS$9.24m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 25, 2021

Earnings per share (EPS)0.067
Gross Margin51.27%
Net Profit Margin1.05%
Debt/Equity Ratio120.4%

How did ACC perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

96%

Payout Ratio

Valuation

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

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACC ($48.71) is trading below our estimate of fair value ($65.38)

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 (735.6x) compared to the US REITs industry average (50.1x).

PE vs Market: ACC is poor value based on its PE Ratio (735.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ACC is poor value based on its PEG Ratio (9.3x)


Price to Book Ratio

PB vs Industry: ACC is overvalued based on its PB Ratio (2.2x) compared to the US REITs industry average (2x).


Future Growth

How is American Campus Communities forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

79.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACC's forecast earnings growth (79.2% per year) is above the savings rate (2%).

Earnings vs Market: ACC's earnings (79.2% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACC's revenue (6.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ACC's revenue (6.6% 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 (2.9%).


Past Performance

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

-7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACC has a large one-off gain of $4.0M impacting its June 30 2021 financial results.

Growing Profit Margin: ACC's current net profit margins (1.1%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: ACC's earnings have declined by 7.4% per year over the past 5 years.

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

Earnings vs Industry: ACC had negative earnings growth (-91.6%) over the past year, making it difficult to compare to the REITs industry average (3.9%).


Return on Equity

High ROE: ACC's Return on Equity (0.3%) is considered low.


Financial Health

How is American Campus Communities's financial position?


Financial Position Analysis

Short Term Liabilities: ACC's short term assets ($67.7M) do not cover its short term liabilities ($69.7M).

Long Term Liabilities: ACC's short term assets ($67.7M) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: ACC's debt to equity ratio (120.4%) is considered high.

Reducing Debt: ACC's debt to equity ratio has increased from 74.1% to 120.4% over the past 5 years.

Debt Coverage: ACC's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: ACC's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Dividend

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

3.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACC's dividend (3.86%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ACC's dividend (3.86%) is in the top 25% of dividend payers in the US market (3.6%)


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: At its current payout ratio (95.7%), ACC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACC's dividends in 3 years are forecast to be covered by earnings (79.3% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

Bill Bayless (57 yo)

17.92yrs

Tenure

US$6,875,442

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 ($USD6.88M) is about average for companies of similar size in the US market ($USD6.43M).

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


Leadership Team

Experienced Management: ACC's management team is seasoned and experienced (9.2 years average tenure).


Board Members

Experienced Board: ACC's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ACC insiders have only sold shares 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 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$6.797b
  • Market Cap: US$6.770b
  • Shares outstanding: 139.55m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.