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Fundamental analysis: Apartment Income REIT Corp. (AIRC)

Awarener score: 5.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Modest) and growth (Very poor), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.5

  • Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
  • Apartment Income REIT Corp. business trend isn't so stable. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 9.5

  • AIRC profit margins -on goods and services sold- are usually excellent. They stand well ranked against rival companies.
  • Business profit on sales tends to be very good. It's substantially worse when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain impressive in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 4.3

  • Apartment Income REIT Corp. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been better than most comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares encouraging in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be excellent in relation to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was top-notch against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 9.0

  • AIRC managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been worse than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.0

  • Apartment Income REIT Corp. usually gets excellent returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 4.8

  • AIRC usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands top tier when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is encouraging in relation to industry peers.
  • In the past twelve months it paid excellent dividends, considering the current stock price. It came better than most competitors.
  • In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved lacking compared to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks worse than most comparable companies.
  • The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.5

  • Apartment Income REIT Corp. intangible assets (like brands and goodwill) represent a non-significant portion of resources controlled, according to accounting books, which is safer. It happens to be substantially worse when measured against peer companies.
  • Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
  • Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains mediocre against rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks more than average in relation to rivals.
  • Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
  • A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
  • Usually, sales are mostly on cash. It still ranks last-in-rank when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be bottom tier against peers.
  • Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's a disappointment compared to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
  • There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in a weak position compared to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 6.4

  • Apartment Income REIT Corp. looks very cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands worse than most similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still substantially worse when measured against industry firms.
  • In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up in a very weak position compared to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks top tier when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in good shape compared to peer companies.

Total score: 6.6


AIRC logos

Company at a glance: Apartment Income REIT Corp. (AIRC)

Sector, industry: Real Estate, REIT—Residential

Market Cap: 6.11 billions

Revenues TTM: 0.75 billions

AIR is a real estate investment trust focused on the ownership and management of quality apartment communities located in the largest markets in the United States. AIR is one of the country's largest owners and operators of apartments, with 99 communities in 12 states and the District of Columbia. AIR common shares are traded on the New York Stock Exchange under the ticker symbol AIRC, and are included in the S&P 400. For more information about AIR, please visit our website at www.aircommunities.com.

Awarener score: 5.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Modest) and growth (Very poor), and the company's inclination to return cash to the stockholders (Poor).