NYSE:AVB

Stock Analysis Report

Executive Summary

As of June 30, 2019, the Company owned or held a direct or indirect ownership interest in 294 apartment communities containing 86,184 apartment homes in 12 states and the District of Columbia, of which 21 communities were under development and seven 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

-0.08%

NYSE:AVB

0.3%

US REITs

-0.7%

US Market


1 Year Return

12.4%

NYSE:AVB

8.2%

US REITs

-0.5%

US Market

AVB outperformed the REITs industry which returned 8.1% over the past year.

AVB outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

AVBIndustryMarket
7 Day-0.08%0.3%-0.7%
30 Day-0.5%3.7%-3.0%
90 Day2.6%4.0%0.9%
1 Year16.0%12.4%13.0%8.2%1.7%-0.5%
3 Year28.6%16.8%24.7%8.4%39.5%30.4%
5 Year56.5%34.0%58.7%25.0%54.1%37.0%

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

Valuation

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

31.14x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

AvalonBay Communities is good value based on earnings compared to the US REITs industry average.

AvalonBay Communities is overvalued based on earnings compared to the United States of America 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 US 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?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AvalonBay Communities's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

AvalonBay Communities's earnings are expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).

AvalonBay Communities's revenue growth is positive but not above the United States of America market average.

AvalonBay Communities's earnings growth is positive but not above the United States of America market average.

AvalonBay Communities's earnings growth is positive but not above the low risk savings rate of 2.7%.


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?

9.5%

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 is less than its 5-year average (5.1% vs 9.5%)

AvalonBay Communities's earnings growth has not exceeded the US REITs industry average in the past year (5.1% vs 16.9%).


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 more efficiently than the US 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 (68.4%) 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 (70.6% vs 68.4% today).

Debt is not well covered by operating cash flow (17.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x 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?

3.07%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AvalonBay Communities's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

AvalonBay Communities's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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 (219.8x 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?

7.3yrs

Average management tenure


CEO

Tim Naughton (58yo)

7.6yrs

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 about average for companies of similar size in United States of America.

Tim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

7.3yrs

Average Tenure

56yo

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

4.8yrs

Average Tenure

60yo

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

SellUS$522,67312 Jun 19
William McLaughlin
EntityIndividual
Shares2,500
Max PriceUS$209.07
SellUS$1,049,27512 Jun 19
Leo Horey
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares5,000
Max PriceUS$210.00
SellUS$310,39610 Jun 19
Edward Schulman
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,500
Max PriceUS$206.93
SellUS$51,37228 May 19
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares250
Max PriceUS$205.49
SellUS$226,30308 May 19
Keri Shea
EntityIndividual
Shares1,131
Max PriceUS$200.09
SellUS$302,62706 May 19
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,500
Max PriceUS$201.75
SellUS$417,81715 Mar 19
Edward Schulman
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,100
Max PriceUS$198.96
SellUS$499,41014 Mar 19
William McLaughlin
EntityIndividual
Shares2,500
Max PriceUS$199.77
SellUS$4,354,23511 Mar 19
Timothy Naughton
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares22,164
Max PriceUS$197.00
SellUS$971,17811 Mar 19
Stephen Wilson
EntityIndividual
Role
Senior Key Executive
Consultant
Shares4,956
Max PriceUS$195.96
SellUS$981,15007 Mar 19
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,000
Max PriceUS$196.23
SellUS$688,13107 Mar 19
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares3,500
Max PriceUS$196.64
SellUS$980,50005 Mar 19
Leo Horey
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares5,000
Max PriceUS$197.00
SellUS$7,35206 Dec 18
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares39
Max PriceUS$188.50
SellUS$540,01027 Nov 18
Stephen Wilson
EntityIndividual
Role
Senior Key Executive
Consultant
Shares2,905
Max PriceUS$185.89
SellUS$347,98321 Nov 18
Keri Shea
EntityIndividual
Shares1,880
Max PriceUS$185.10
SellUS$373,76021 Nov 18
Leo Horey
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares2,000
Max PriceUS$186.88
SellUS$257,26420 Nov 18
Edward Schulman
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,400
Max PriceUS$183.76
SellUS$182,24009 Nov 18
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceUS$182.24
SellUS$269,26507 Nov 18
Kevin O'Shea
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,500
Max PriceUS$179.51
SellUS$765,24028 Aug 18
Sean Breslin
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,200
Max PriceUS$182.20

Ownership Breakdown


Management Team

  • Tim Naughton (58yo)

    Chairman

    • Tenure: 7.6yrs
    • Compensation: US$10.08m
  • Leo Horey (56yo)

    Chief Administrative Officer

    • Tenure: 7.3yrs
    • Compensation: US$3.14m
  • Sean Breslin (52yo)

    Chief Operating Officer

    • Tenure: 4.6yrs
    • Compensation: US$3.49m
  • Ronald Ladell (57yo)

    Senior Vice President of Development - New Jersey

    • Tenure: 17.6yrs
  • Edward Schulman (56yo)

    Executive VP

    • Tenure: 20.5yrs
    • Compensation: US$1.06m
  • Steve Wilson (62yo)

    Consultant

    • Tenure: 0.1yrs
    • Compensation: US$2.53m
  • Kevin O'Shea (53yo)

    Chief Financial Officer

    • Tenure: 5.2yrs
    • Compensation: US$3.27m
  • Kurt Conway (59yo)

    Senior Vice President of Brand Strategy & Marketing

    • Tenure: 9.0yrs
  • Matt Birenbaum (53yo)

    Chief Investment Officer

    • Tenure: 4.6yrs
    • Compensation: US$3.45m
  • Jason Reilley

    Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • H. Sarles (74yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: US$270.05k
  • Tim Naughton (58yo)

    Chairman

    • Tenure: 7.6yrs
    • Compensation: US$10.08m
  • Ron Havner (61yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$225.15k
  • Alan Buckelew (70yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$245.05k
  • Glyn Aeppel (60yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$240.05k
  • Ed Walter (63yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$245.05k
  • Terry Brown (57yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$225.15k
  • Steve Hills (60yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$225.05k
  • Susan Swanezy (60yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$225.15k
  • Richard Lieb (59yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$225.05k

Company Information

AvalonBay Communities, Inc.'s company bio, 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$28.680b
  • Market Cap: US$28.679b
  • Shares outstanding: 139.33m
  • Website: https://www.avalonbay.com

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 June 30, 2019, the Company owned or held a direct or indirect ownership interest in 294 apartment communities containing 86,184 apartment homes in 12 states and the District of Columbia, of which 21  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:33
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.