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Fundamental analysis: Alexandria Real Estate Equities, Inc. (ARE)

Awarener score: 5.6

Conclusion

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: 9.0

• Business has been growing at a very good pace. It's been top tier when measured against peer companies.
• Alexandria Real Estate Equities, Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 9.3

• ARE profit margins -on goods and services sold- are usually excellent. They stand better than most rival companies.
• Business profit on sales tends to be huge. It's great when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain a slight improvement compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still slightly better than similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain more than average in relation to rivals.
• Total net profit tends to be excellent when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 7.3

• Alexandria Real Estate Equities, Inc. profit -on goods and services sold- has been growing at a normal pace. It's been impressive in relation to competitors.
• In recent years, earnings -on operations- have been growing at a normal step, which has been somewhat better than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares more than average in relation to peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be rather normal in relation to similar stocks.
• In past years, profits -before income taxes- grew at a very good speed. It was slightly worse than rivals.
• In the previous years, growth trend on total net profit has been very good, and similar to peer companies.
• Earnings per share have grown at a very good rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 8.0

• ARE managed to pay little to no income taxes on profits made in the past years. It's been somewhat worse than 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: 5.8

• Alexandria Real Estate Equities, Inc. usually gets sufficient returns on the resources it controls. It proves weak when measured against peer firms.
• The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
• There's usually some profitability -in relation to owned resources-. It ranks weak 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 weak when measured against comparable enterprises.

Usage of Funds score: 3.7

• ARE usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands weak when measured against rival firms.
• The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
• In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came worse than most competitors.
• In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved in a very weak position compared 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 a disappointment 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.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.4

• Alexandria Real Estate Equities, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
• The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be in a weak position compared to similar firms.
• Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains well ranked against rival firms.
• Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks below average when measured against rivals.
• For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in a weak position compared to peer firms.
• For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is slightly worse than similar enterprises.
• Usually, sales are mostly on cash. It still ranks top tier 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 top-notch against peers.
• On average pays suppliers many months after the purchase. It ranks top tier when measured against industry peers.
• The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
• Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands better 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 almost average when measured against comparable enterprises.
• Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a very 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 bottom tier against peer companies.

Valuation score: 4.7

• Alexandria Real Estate Equities, Inc. looks very expensive in relation to profits and financial position. It happens to be below average 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 in a weak position 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 bottom tier against similar companies.
• In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough 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 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 somewhat more stockholders. It came up a disappointment compared to peer ventures.
• The company is indebted, it should focus on loan repayment. It looks somewhat better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks weak 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 a disappointment 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 mediocre against 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 similar to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 6.8

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Awarener score: 5.6

Conclusion

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