NYSE:BXP

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Average dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Boston Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BXP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.03%

BXP

-1.8%

US REITs

0.3%

US Market


1 Year Return

11.4%

BXP

13.1%

US REITs

12.5%

US Market

Return vs Industry: BXP underperformed the US REITs industry which returned 13.1% over the past year.

Return vs Market: BXP underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

BXPIndustryMarket
7 Day0.03%-1.8%0.3%
30 Day8.1%-2.0%4.1%
90 Day8.9%1.3%5.6%
1 Year14.8%11.4%17.8%13.1%15.0%12.5%
3 Year19.2%9.9%37.7%20.7%49.1%39.4%
5 Year29.3%9.6%56.5%23.7%62.8%44.7%

Price Volatility Vs. Market

How volatile is Boston Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

41.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BXP ($138.57) is trading above our estimate of fair value ($112.77)

Significantly Below Fair Value: BXP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BXP is poor value based on its PE Ratio (41.3x) compared to the REITs industry average (38.8x).

PE vs Market: BXP is poor value based on its PE Ratio (41.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BXP is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: BXP is overvalued based on its PB Ratio (3.9x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXP's forecast earnings growth (7% per year) is above the savings rate (2.7%).

Earnings vs Market: BXP's earnings (7% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: BXP's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BXP's revenue (4.9% 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 (10.2%).


Next Steps

Past Performance

How has Boston Properties performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BXP has high quality earnings.

Growing Profit Margin: BXP's current net profit margins (17.8%) are lower than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: BXP's earnings have grown by 1.1% per year over the past 5 years.

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

Earnings vs Industry: BXP had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: BXP's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Boston Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BXP has a high level of physical assets or inventory.

Debt Coverage by Assets: BXP's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: BXP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BXP has a sufficient allowance for bad loans.

Low Risk Liabilities: BXP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BXP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BXP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BXP has an appropriate level of bad loans.


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: BXP's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: BXP's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: BXP's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.4%), BXP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BXP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

What is the CEO of Boston Properties's salary, the management and board of directors tenure and is there insider trading?

12.3yrs

Average management tenure


CEO

Owen Thomas (57yo)

6.6yrs

Tenure

US$11,694,946

Compensation

Owen David Thomas has served as Chief Executive Officer of Boston Properties, Inc. since April 2013 and serves as its Director. Mr. Thomas served as Chairman of the Board of Directors of Lehman Brothers Ho ...


CEO Compensation Analysis

Compensation vs Market: Owen's total compensation ($USD11.69M) is about average for companies of similar size in the US market ($USD11.12M).

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


Management Age and Tenure

12.3yrs

Average Tenure

57yo

Average Age

Experienced Management: BXP's management team is seasoned and experienced (12.3 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BXP's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$553,86207 Jun 19
Bryan Koop
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Boston Region
Shares4,121
Max PriceUS$134.40
SellUS$535,83917 May 19
Bryan Koop
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Boston Region
Shares3,974
Max PriceUS$134.84
SellUS$267,28121 Feb 19
Frank Burt
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares2,000
Max PriceUS$133.65

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mort Zuckerman (81yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 3.5yrs
    • Compensation: US$654.66k
  • Ray Ritchey (68yo)

    Senior Executive Vice President

    • Tenure: 21.6yrs
    • Compensation: US$7.11m
  • Doug Linde (55yo)

    President & Director

    • Tenure: 9.8yrs
    • Compensation: US$8.10m
  • Bryan Koop (60yo)

    Executive Vice President of Boston Region

    • Tenure: 3.8yrs
    • Compensation: US$3.24m
  • Owen Thomas (57yo)

    CEO & Director

    • Tenure: 6.6yrs
    • Compensation: US$11.69m
  • Frank Burt (60yo)

    Senior VP

    • Tenure: 16.8yrs
  • James Whalen (56yo)

    Senior VP & Chief Information Officer

    • Tenure: 0yrs
  • Mike Walsh (52yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.4yrs
  • Michael LaBelle (55yo)

    Executive VP

    • Tenure: 12yrs
    • Compensation: US$3.95m
  • Sara Buda

    Vice President

    • Tenure: 0yrs

Board Members

  • Mort Zuckerman (81yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 3.5yrs
    • Compensation: US$654.66k
  • Doug Linde (55yo)

    President & Director

    • Tenure: 9.8yrs
    • Compensation: US$8.10m
  • Bruce Duncan (67yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$210.75k
  • Karen Dykstra (60yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$217.50k
  • Owen Thomas (57yo)

    CEO & Director

    • Tenure: 6.6yrs
    • Compensation: US$11.69m
  • Matt Lustig (59yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$209.36k
  • Joel Klein (72yo)

    Independent Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$221.25k
  • Carol Einiger (69yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$219.75k
  • Dave Twardock (61yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$247.50k
  • Kelly Ayotte (50yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$170.73k

Company Information

Boston Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Boston Properties, Inc.
  • Ticker: BXP
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$23.711b
  • Market Cap: US$21.419b
  • Shares outstanding: 171.39m
  • Website: https://www.bostonproperties.com

Number of Employees


Location

  • Boston Properties, Inc.
  • Prudential Center
  • 800 Boylston Street
  • Boston
  • Massachusetts
  • 2199
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BXPNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1997
BO9DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1997
0HOXLSE (London Stock Exchange)YesCommon StockGBUSDJun 1997
BXP.PRBNYSE (New York Stock Exchange)DEP 1/100 PF BUSUSDMar 2013
BOXP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/10 COM USD0.01BRBRLJul 2015

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:32
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
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.