Apartment Income REIT Corp.
Apartment Income REIT Corp. Fundamental Analysis
Apartment Income REIT Corp. (AIRC) shows strong financial fundamentals with a PE ratio of 9.10, profit margin of 77.45%, and ROE of 28.17%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AIRC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAIRC demonstrates superior asset utilization.
Valuation Score
ExcellentAIRC trades at attractive valuation levels.
Growth Score
ModerateAIRC shows steady but slowing expansion.
Financial Health Score
WeakAIRC carries high financial risk with limited liquidity.
Profitability Score
ExcellentAIRC achieves industry-leading margins.
Key Financial Metrics
Is AIRC Expensive or Cheap?
P/E Ratio
AIRC trades at 9.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AIRC's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Apartment Income REIT Corp. at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.79 times EBITDA. This is generally considered low.
How Well Does AIRC Make Money?
Net Profit Margin
For every $100 in sales, Apartment Income REIT Corp. keeps $77.45 as profit after all expenses.
Operating Margin
Core operations generate 20.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.17 in profit for every $100 of shareholder equity.
ROA
Apartment Income REIT Corp. generates $10.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Apartment Income REIT Corp. generates strong operating cash flow of $566.59M, reflecting robust business health.
Free Cash Flow
Apartment Income REIT Corp. generates strong free cash flow of $380.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.62 in free cash annually.
FCF Yield
AIRC converts 6.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AIRC Stacks Against Its Sector Peers
| Metric | AIRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.10 | 24.23 | Better (Cheaper) |
| ROE | 28.17% | 659.00% | Weak |
| Net Margin | 77.45% | 4497.00% | Weak |
| Debt/Equity | 1.42 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.53 | 13.87 | Weak Liquidity |
| ROA | 10.35% | -1390.00% (disorted) | Strong |
AIRC outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Apartment Income REIT Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT