Fundamental analysis: AvalonBay Communities, Inc. (AVB)

Awarener score: 6.6

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 (Excellent) and growth (Poor), and the company's inclination to return cash to the stockholders (Very good).

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: 6.0

Business has been shrinking. It's been weak when measured against peer companies.
AvalonBay Communities, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 9.8

AVB profit margins -on goods and services sold- are usually excellent. They stand slightly better than rival companies.
Business profit on sales tends to be huge. It's similar to 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 huge in relation to total revenues. They're still well ranked against similar companies.
Profits -before income taxes- are usually huge considering total sales, and remain more than average in relation to rivals.
Total net profit tends to be huge when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 3.0

AvalonBay Communities, Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares below average when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
In the previous years, growth on total net profit has been almost null, and below average when measured against peer companies.
Earnings per share have been almost stagnant in past years. It's been lacking compared to industry peers.

Miscellaneous score: 9.0

AVB managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been mediocre 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: 7.0

AvalonBay Communities, Inc. usually gets very good returns on the resources it controls. It proves encouraging in relation to peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
Profitability -in relation to owned resources- is usually quite good. It ranks similar to competitors.
In the past, got 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 encouraging in relation to comparable enterprises.

Usage of Funds score: 5.4

AVB 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 encouraging in relation to rival firms.
The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is weak when measured against industry peers.
In the past twelve months it paid very good dividends, considering the current stock price. It came somewhat better than competitors.
In recent years, has slightly cut back dividend payments. The company has behaved close to average when compared to similar firms.
The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks slightly better than comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains a slight improvement 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 rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.3

AvalonBay Communities, 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.
Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains worse than most rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks similar 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 similar to peers.
Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as a disappointment compared to competitors.
On average, it takes close to one month from the purchase to charging customers. It happens to be somewhat worse than peers.
Pays suppliers mostly in cash. It ranks substantially worse when measured against industry peers.
The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's in a very weak position compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands well ranked against rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks rather normal in relation 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: 5.6

AvalonBay Communities, Inc. looks expensive in relation to profits and financial position. It happens to be encouraging in relation to 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 rather normal in relation to peers.
In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly worse than similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks similar to 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 in a very weak position compared to rival firms.
The relation between the stock price and accounting book value is 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 better than peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be almost average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 6.5

Company at a glance: AvalonBay Communities, Inc. (AVB)

Sector, industry: Real Estate, REIT—Residential

Market Cap: 21.56 billions

Revenues TTM: 2.59 billions

As of December 31, 2020, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 86,025 apartment homes in 11 states and the District of Columbia, of which 18 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion markets consisting of Southeast Florida and Denver, Colorado (the "Expansion Markets").