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ACC

American Campus CommunitiesNYSE:ACC Stock Report

Market Cap

US$7.3b

7D

0.3%

1Y

22.4%

Updated

04 Dec, 2021

Data

Company Financials +
ACC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health0/6
Dividends5/6

ACC Stock 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

AvalonBay Communities

NYSE:AVB

US$33.2b

Equity Residential

NYSE:EQR

US$33.0b

Invitation Homes

NYSE:INVH

US$25.0b

Mid-America Apartment Communities

NYSE:MAA

US$24.6b

Price History & Performance

Summary of all time highs, changes and price drops for American Campus Communities
Historical stock prices
Current Share PriceUS$52.17
52 Week HighUS$55.15
52 Week LowUS$40.01
Beta0.98
1 Month Change-4.24%
3 Month Change0.35%
1 Year Change22.35%
3 Year Change19.30%
5 Year Change9.74%
Change since IPO198.11%

Recent News & Updates

Oct 13

American Campus Communities' Rebound Is Fully Priced In, But The Looming Enrollment Cliff Is Not

ACC is enjoying a strong rebound from the ravages of COVID-19 and online classes. The student housing REIT expects to see a full recovery in occupancy in the Fall of 2022. But investors should weigh present strength against a probable future higher ed enrollment cliff. It's a matter of simple demographics. Moreover, damaged relations with China, the largest "importer" of foreign students to US universities, seems to have triggered a sea change in the Chinese attitude about obtaining an American education. I give my argument for why ACC's valuation is too rich given the headwinds it will eventually face.

Shareholder Returns

ACCUS REITsUS Market
7D0.3%-0.2%-2.7%
1Y22.4%26.0%16.6%

Return vs Industry: ACC underperformed the US REITs industry which returned 28.4% over the past year.

Return vs Market: ACC exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is ACC's price volatile compared to industry and market?
ACC volatility
ACC Average Weekly Movement3.3%
REITs Industry Average Movement3.7%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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$7.29b
Earnings (TTM)US$17.27m
Revenue (TTM)US$903.08m

422.1x

P/E Ratio

8.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACC income statement (TTM)
RevenueUS$903.08m
Cost of RevenueUS$442.18m
Gross ProfitUS$460.90m
ExpensesUS$443.63m
EarningsUS$17.27m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin51.04%
Net Profit Margin1.91%
Debt/Equity Ratio122.2%

How did ACC perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

92%

Payout Ratio

Valuation

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

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACC ($52.17) is trading below our estimate of fair value ($70.72)

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 (422.1x) compared to the US REITs industry average (45.8x).

PE vs Market: ACC is poor value based on its PE Ratio (422.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ACC is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: ACC is overvalued based on its PB Ratio (2.4x) 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 4 analysts?

69.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACC's forecast earnings growth (69.9% per year) is above the savings rate (2%).

Earnings vs Market: ACC's earnings (69.9% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: ACC's revenue (5.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ACC's revenue (5.5% 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 (3.8%).


Past Performance

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

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACC has a large one-off gain of $5.4M impacting its September 30 2021 financial results.

Growing Profit Margin: ACC's current net profit margins (1.9%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: ACC's earnings have declined by 11.3% 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 (-75.5%) over the past year, making it difficult to compare to the REITs industry average (27.7%).


Return on Equity

High ROE: ACC's Return on Equity (0.5%) is considered low.


Financial Health

How is American Campus Communities's financial position?


Financial Position Analysis

Short Term Liabilities: ACC's short term assets ($84.7M) do not cover its short term liabilities ($98.4M).

Long Term Liabilities: ACC's short term assets ($84.7M) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: ACC's net debt to equity ratio (120.8%) is considered high.

Reducing Debt: ACC's debt to equity ratio has increased from 70.6% to 122.2% over the past 5 years.

Debt Coverage: ACC's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: ACC's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Dividend

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

3.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACC's dividend (3.6%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ACC's dividend (3.6%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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 (92.5%), 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 (75.3% payout ratio).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Bill Bayless (57 yo)

18.17yrs

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 ($USD6.88M) is about average for companies of similar size in the US market ($USD6.35M).

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 years average tenure).


Board Members

Experienced Board: ACC's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$7.289b
  • Market Cap: US$7.260b
  • Shares outstanding: 139.71m
  • 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 Analysis2021/12/04 00:03
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
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.