| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
AVB Overview
As of December 31, 2020, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 86,025 apartment homes in 11 states and the District of Columbia, of which 18 communities were under development and one community was under redevelopment.
AvalonBay Communities Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$219.89 |
| 52 Week High | US$131.38 |
| 52 Week Low | US$233.48 |
| Beta | 0.95 |
| 1 Month Change | -2.11% |
| 3 Month Change | 3.67% |
| 1 Year Change | 45.57% |
| 3 Year Change | 18.74% |
| 5 Year Change | 20.31% |
| Change since IPO | 953.37% |
Recent News & Updates
Why AvalonBay Is The Best Option For Real Estate Investors
Apartment Trusts are the most reliable and, arguably, the most profitable REITs in the long term. Key points to consider: the company’s size, property types and local diversification. Among several possible options, AvalonBay Communities emerges as a world-class, best-of-breed company.
AvalonBay Communities: Buy Quality, But Not At This Price
AvalonBay Communities is a significant, 1.5% position in my portfolio and one I initiated during the pandemic. The result is an RoR of over 50% in a relatively short time. Some investors still consider this company a "BUY". I do not. In fact, I'm looking at what valuation I would need to consider profit harvesting. This is based on the company's excessive valuation, which we'll look at here.
Shareholder Returns
| AVB | US REITs | US Market | |
|---|---|---|---|
| 7D | -1.6% | -0.3% | -0.6% |
| 1Y | 45.6% | 32.5% | 33.8% |
Return vs Industry: AVB exceeded the US REITs industry which returned 32.5% over the past year.
Return vs Market: AVB exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| AVB volatility | |
|---|---|
| AVB Beta | 0.95 |
| Industry Beta | 0.82 |
| Market Beta | 1 |
Stable Share Price: AVB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: AVB's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1978 | 3,028 | Tim Naughton | https://www.avalonbay.com |
As of December 31, 2020, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 86,025 apartment homes in 11 states and the District of Columbia, of which 18 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion markets consisting of Southeast Florida and Denver, Colorado (the "Expansion Markets").
AvalonBay Communities Fundamentals Summary
| AVB fundamental statistics | |
|---|---|
| Market Cap | US$30.65b |
| Earnings (TTM) | US$1.08b |
| Revenue (TTM) | US$2.26b |
28.5x
P/E Ratio13.6x
P/S RatioIs AVB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AVB income statement (TTM) | |
|---|---|
| Revenue | US$2.26b |
| Cost of Revenue | US$847.09m |
| Gross Profit | US$1.41b |
| Expenses | US$338.06m |
| Earnings | US$1.08b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 7.71 |
| Gross Margin | 62.55% |
| Net Profit Margin | 47.60% |
| Debt/Equity Ratio | 69.0% |
How did AVB perform over the long term?
See historical performance and comparisonDividends
2.9%
Current Dividend Yield81%
Payout RatioValuation
Is AvalonBay Communities undervalued compared to its fair value and its price relative to the market?
19.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AVB ($219.89) is trading below our estimate of fair value ($273.44)
Significantly Below Fair Value: AVB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AVB is good value based on its PE Ratio (28.5x) compared to the US REITs industry average (50.1x).
PE vs Market: AVB is poor value based on its PE Ratio (28.5x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: AVB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AVB is overvalued based on its PB Ratio (2.8x) compared to the US REITs industry average (2x).
Future Growth
How is AvalonBay Communities forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-4.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVB's earnings are forecast to decline over the next 3 years (-4.5% per year).
Earnings vs Market: AVB's earnings are forecast to decline over the next 3 years (-4.5% per year).
High Growth Earnings: AVB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AVB's revenue (4.7% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: AVB's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AVB's Return on Equity is forecast to be low in 3 years time (6.8%).
Past Performance
How has AvalonBay Communities performed over the past 5 years?
-2.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVB has a large one-off gain of $661.9M impacting its June 30 2021 financial results.
Growing Profit Margin: AVB's current net profit margins (47.6%) are higher than last year (33.2%).
Past Earnings Growth Analysis
Earnings Trend: AVB's earnings have declined by 2.3% per year over the past 5 years.
Accelerating Growth: AVB's earnings growth over the past year (37.3%) exceeds its 5-year average (-2.3% per year).
Earnings vs Industry: AVB earnings growth over the past year (37.3%) exceeded the REITs industry 3.9%.
Return on Equity
High ROE: AVB's Return on Equity (9.9%) is considered low.
Financial Health
How is AvalonBay Communities's financial position?
Financial Position Analysis
Short Term Liabilities: AVB's short term assets ($738.8M) exceed its short term liabilities ($635.3M).
Long Term Liabilities: AVB's short term assets ($738.8M) do not cover its long term liabilities ($7.8B).
Debt to Equity History and Analysis
Debt Level: AVB's debt to equity ratio (69%) is considered high.
Reducing Debt: AVB's debt to equity ratio has reduced from 69.2% to 69% over the past 5 years.
Debt Coverage: AVB's debt is not well covered by operating cash flow (15.4%).
Interest Coverage: AVB's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Dividend
What is AvalonBay Communities's current dividend yield, its reliability and sustainability?
2.89%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AVB's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: AVB's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: AVB's dividends per share have been stable in the past 10 years.
Growing Dividend: AVB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (81%), AVB's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AVB's dividends in 3 years are forecast to be covered by earnings (75.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.4yrs
Average management tenure
CEO
Tim Naughton (60 yo)
9.67yrs
Tenure
US$11,294,333
Compensation
Mr. Timothy J. Naughton, also known as Tim, has been the Chief Executive Officer of AvalonBay Communities Inc. since January 1, 2012 and was its President since February 23, 2015 until January 2021. Mr. Na...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD11.29M) is about average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AVB's management team is seasoned and experienced (10.4 years average tenure).
Board Members
Experienced Board: AVB's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AVB 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
AvalonBay Communities, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: AvalonBay Communities, Inc.
- Ticker: AVB
- Exchange: NYSE
- Founded: 1978
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$30.650b
- Market Cap: US$30.649b
- Shares outstanding: 139.39m
- Website: https://www.avalonbay.com
Number of Employees
Location
- AvalonBay Communities, Inc.
- 4040 Wilson Boulevard
- Suite 1000
- Arlington
- Virginia
- 22203
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 22:01 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.