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Fundamental analysis: Preferred Apartment Communities, Inc. (APTS)

Awarener score: 5.8

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 (Lacking), the business stability (Modest) and growth (Average), and the company's inclination to return cash to the stockholders (Excellent).

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: 5.5

  • Business has been growing at a low pace. It's been similar to peer companies.
  • Preferred Apartment Communities, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 7.3

  • APTS profit margins -on goods and services sold- are usually excellent. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be excellent. It's substantially worse when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain in a weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still worse than most similar companies.
  • Profits -before income taxes- are usually meagre considering total sales, and remain last-in-rank when measured against rivals.
  • Total net profit tends to be meagre when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 2.6

  • Preferred Apartment Communities, Inc. profit -on goods and services sold- has been growing at a low pace. It's been close to average when compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares great when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier 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: 1.0

  • APTS had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against 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: 5.5

  • Preferred Apartment Communities, Inc. usually gets sufficient returns on the resources it controls. It proves last-in-rank when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
  • Profitability -in relation to owned resources- is usually modest. It ranks last-in-rank when measured against competitors.
  • In the past, got sufficient 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 last-in-rank when measured against comparable enterprises.

Usage of Funds score: 4.2

  • APTS usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands last-in-rank when measured against rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is similar to industry peers.
  • In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
  • Dividend payments have been more or less stable in recent years. The company has behaved rather normal in relation to similar firms.
  • The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against 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 in a very weak position compared to rivals.
  • The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 4.5

  • Preferred Apartment Communities, Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be similar to peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be rather normal in relation to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains bottom tier against rival firms.
  • Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks more than average in relation to rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
  • For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on many months credit. It still ranks weak when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes a lot of months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers approximately three months after the purchase. It ranks similar to industry peers.
  • The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's in a weak position compared to similar companies.
  • Usual business earnings barely cover net interest expenses. Creditors may be earning money by assuming risks, but hardly shareholders. Situation is risky, profitability must increase, or additional stockholders' funding will eventually be required. It stands worse than most rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it 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 better than peer companies.

Valuation score: 4.7

  • Preferred Apartment Communities, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be substantially worse 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 a slight improvement compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands mediocre against similar companies.
  • The company usually consumes more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
  • In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
  • The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in good shape compared to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 4.4


APTS logos

Company at a glance: Preferred Apartment Communities, Inc. (APTS)

Sector, industry: Real Estate, REIT—Diversified

Market Cap: 1.62 billions

Revenues TTM: 0.44 billions

Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers, Class A office buildings, and student housing properties. Preferred Apartment Communities' investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans for multifamily properties. As of September 30, 2020, the Company owned or was invested in 125 properties in 15 states, predominantly in the Southeast region of the United States.

Awarener score: 5.8

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 (Lacking), the business stability (Modest) and growth (Average), and the company's inclination to return cash to the stockholders (Excellent).