Boston Properties (NYSE:BXP) - Share price, News & Analysis

BXP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	1/6
Dividends	5/6

BXP Stock Overview

Rewards

Trading at 28% below our estimate of its fair value

Earnings are forecast to grow 10.13% per year

Earnings have grown 4.1% per year over the past 5 years

Pays a reliable dividend of 3.71%

Risk Analysis

Interest payments are not well covered by earnings

Boston Properties Competitors

Alexandria Real Estate Equities

NYSE:ARE

US$26.2b

Kilroy Realty

NYSE:KRC

US$7.0b

Vornado Realty Trust

NYSE:VNO

US$6.9b

Douglas Emmett

NYSE:DEI

US$5.7b

Price History & Performance

Summary of all time highs, changes and price drops for Boston Properties
Historical stock prices
Current Share Price	US$105.58
52 Week High	US$133.11
52 Week Low	US$102.49
Beta	1.09
1 Month Change	-16.00%
3 Month Change	-10.83%
1 Year Change	-7.73%
3 Year Change	-20.47%
5 Year Change	-12.61%
Change since IPO	294.69%

Recent News & Updates

Apr 06

Boston Properties Is A World-Class REIT But Currently Overvalued

Boston Properties is the largest office REIT in the US and one of the best managed in our opinion. Its high-quality class A offices have been performing relatively well despite the pandemic, and they have long leases that give the company time to work out the potential impact of work-from-home. The company is generating significant value with its development pipeline, as well as its life sciences buildings platform. Unfortunately, shares are no longer cheap, and we currently rate them a Sell based mostly on valuation, but also uncertainty around the impact of work-from-home.

Shareholder Returns

	BXP	US REITs	US Market
7D	-8.0%	-0.7%	-4.0%
1Y	-7.7%	-1.3%	-13.2%

Return vs Industry: BXP underperformed the US REITs industry which returned -2.1% over the past year.

Return vs Market: BXP exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is BXP's price volatile compared to industry and market?
BXP volatility
BXP Average Weekly Movement	4.0%
REITs Industry Average Movement	4.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: BXP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BXP's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1970	743	Owen Thomas	https://www.bostonproperties.com

Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment.

Boston Properties Fundamentals Summary

How do Boston Properties's earnings and revenue compare to its market cap?
BXP fundamental statistics
Market Cap	US$18.48b
Earnings (TTM)	US$547.65m
Revenue (TTM)	US$2.91b

30.2x

P/E Ratio

5.7x

P/S Ratio

Is BXP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BXP income statement (TTM)
Revenue	US$2.91b
Cost of Revenue	US$1.05b
Gross Profit	US$1.86b
Other Expenses	US$1.31b
Earnings	US$547.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.49
Gross Margin	63.80%
Net Profit Margin	18.80%
Debt/Equity Ratio	161.8%

How did BXP perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

64%

Payout Ratio

Valuation

Is Boston Properties undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

28.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BXP ($105.58) is trading below our estimate of fair value ($146.64)

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

Price To Earnings Ratio

PE vs Industry: BXP is good value based on its Price-To-Earnings Ratio (30.2x) compared to the US REITs industry average (32.4x).

PE vs Market: BXP is poor value based on its Price-To-Earnings Ratio (30.2x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: BXP is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: BXP is overvalued based on its Price-To-Book Ratio (2.8x) compared to the US REITs industry average (1.6x).

Future Growth

How is Boston Properties forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXP's forecast earnings growth (10.1% per year) is above the savings rate (1.9%).

Earnings vs Market: BXP's earnings (10.1% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: BXP's revenue (4.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: BXP's revenue (4.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BXP's Return on Equity is forecast to be low in 3 years time (9.6%).

Past Performance

How has Boston Properties performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BXP has high quality earnings.

Growing Profit Margin: BXP's current net profit margins (18.8%) are higher than last year (17%).

Past Earnings Growth Analysis

Earnings Trend: BXP's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: BXP's earnings growth over the past year (19.9%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: BXP earnings growth over the past year (19.9%) underperformed the REITs industry 69.5%.

Return on Equity

High ROE: BXP's Return on Equity (8.5%) is considered low.

Financial Health

How is Boston Properties's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BXP's short term assets ($2.0B) exceed its short term liabilities ($566.3M).

Long Term Liabilities: BXP's short term assets ($2.0B) do not cover its long term liabilities ($13.9B).

Debt to Equity History and Analysis

Debt Level: BXP's net debt to equity ratio (156.4%) is considered high.

Reducing Debt: BXP's debt to equity ratio has increased from 124.9% to 161.8% over the past 5 years.

Debt Coverage: BXP's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: BXP's interest payments on its debt are not well covered by EBIT (2.5x coverage).

Balance Sheet

Dividend

What is Boston Properties's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BXP's dividend (3.71%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: BXP's dividend (3.71%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (63.9%), BXP's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (57.1%), BXP's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

14.5yrs

Average management tenure

CEO

Owen Thomas (59 yo)

9.08yrs

Tenure

US$12,894,537

Compensation

Mr. Owen David Thomas is Global Chairman of the Urban Land Institute, Director of the Real Estate Roundtable, a member of the Executive Board of NAREIT and the former Chairman of the Pension Real Estate As...

CEO Compensation Analysis

Compensation vs Market: Owen's total compensation ($USD12.89M) is about average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: BXP's management team is seasoned and experienced (14.5 years average tenure).

Board Members

Experienced Board: BXP's board of directors are considered experienced (7.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31