AvalonBay Communities, Inc. (AVB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

VICI Properties, Inc.

Welltower, Inc.

Realty Income Corp.

Simon Property Group, Inc.

Equinix, Inc.

American Tower Corp.

Public Storage

Digital Realty Trust, Inc.

Extra Space Storage, Inc.

AvalonBay Communities, Inc.

Crown Castle, Inc.

Why is AvalonBay Communities, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.01% and Operating profit at 6.83%

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 71.43 %
INTEREST COVERAGE RATIO(Q) Lowest at 715.63
RAW MATERIAL COST(Y) Grown by 7.52% (YoY)

With ROE of 9.75%, it has a fair valuation with a 2.43 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.15%, its profits have risen by 18% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 336.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.15% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is AvalonBay Communities, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

AvalonBay Communities, Inc.

-4.22%

-0.53

22.13%

S&P 500

16.26%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.50%

EBIT Growth (5y)

5.66%

EBIT to Interest (avg)

7.26

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

0.03%

Dividend Payout Ratio

94.62%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.35%

ROE (avg)

9.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.94

EV to EBIT

24.14

EV to EBITDA

12.10

EV to Capital Employed

1.97

EV to Sales

7.35

PEG Ratio

Dividend Yield

441.30%

ROCE (Latest)

8.16%

ROE (Latest)

9.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

DIVIDEND PAYOUT RATIO(Y)

Highest at 162.13%

RAW MATERIAL COST(Y)

Fallen by -4.23% (YoY

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 634.75

OPERATING CASH FLOW(Y)

Lowest at USD 1,304 MM

ROCE(HY)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at inf %

PRE-TAX PROFIT(Q)

Lowest at USD 156.96 MM

NET PROFIT(Q)

Lowest at USD 155.72 MM

EPS(Q)

Lowest at USD 1.1

Here's what is working for AvalonBay Communities, Inc.

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 162.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for AvalonBay Communities, Inc.

Interest Coverage Ratio

Lowest at 634.75 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 156.96 MM has Fallen at -42.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 155.72 MM has Fallen at -42.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at inf % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at USD 1,304 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD 156.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 155.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)