Fundamental analysis: Boston Properties, Inc. (BXP)

Awarener score: 7.3

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 (Very good), the business stability (Excellent) and growth (Poor), 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: 6.0

Business has been shrinking. It's been almost average when measured against peer companies.
Boston Properties, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 9.2

BXP profit margins -on goods and services sold- are usually very good. They stand slightly better than 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 lacking compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain encouraging in relation to rivals.
Total net profit tends to be excellent when confronted to sales. Company stands similar to comparable firms.

Growth score: 4.7

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

Miscellaneous score: 8.0

BXP managed to pay little to no income taxes on profits made in the past years. 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: 6.8

Boston Properties, Inc. usually gets good returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
Profitability -in relation to owned resources- is usually quite good. It ranks top tier when measured against 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 more than average in relation to comparable enterprises.

Usage of Funds score: 6.6

BXP usually uses almost no genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is non-significant. It stands more than average in relation to rival firms.
The company is usually not replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is last-in-rank when measured against industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came slightly better than competitors.
In recent years, has slightly cut back dividend payments. The company has behaved rather normal in relation to similar firms.
Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks better than most comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains close to average when 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: 5.3

Boston Properties, 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 more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be excellent in relation to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very 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 great when measured against rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's impressive in relation to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is well ranked against similar enterprises.
Usually, sales are on many months credit. 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 higher than six months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers approximately four months or higher after the purchase. It ranks almost average when measured against industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's lacking compared to similar companies.
Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands somewhat worse than 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.
Revenues are quite good 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 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 somewhat better than peer companies.

Valuation score: 6.4

Boston Properties, Inc. looks heavily expensive in relation to profits and financial position. It happens to be weak 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 generated extraordinary free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually generates plenty more 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, at the current price the share looks to be very attractive. It's still great 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 in a weak position compared 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 worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when 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 lost a little money. 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 modest earnings power ability when measured against the current stock price and financial position. It's still in a weak position compared to peer companies.

Total score: 6.6

Company at a glance: Boston Properties, Inc. (BXP)

Sector, industry: Real Estate, REIT—Office

Market Cap: 7.49 billions

Revenues TTM: 3.16 billions

Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment.