Apartment Investment and Management Company
Apartment Investment and Management Company Fundamental Analysis
Apartment Investment and Management Company (AIV) shows moderate financial fundamentals with a PE ratio of 3.32, profit margin of 1.25%, and ROE of 3.17%. The company generates $0.2B in annual revenue with strong year-over-year growth of 11.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AIV's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAIV demonstrates superior asset utilization.
Valuation Score
ExcellentAIV trades at attractive valuation levels.
Growth Score
ExcellentAIV delivers strong and consistent growth momentum.
Financial Health Score
ModerateAIV shows balanced financial health with some risks.
Profitability Score
WeakAIV struggles to sustain strong margins.
Key Financial Metrics
Is AIV Expensive or Cheap?
P/E Ratio
AIV trades at 3.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AIV's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Apartment Investment and Management Company at 13.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.38 times EBITDA. This signals the market has high growth expectations.
How Well Does AIV Make Money?
Net Profit Margin
For every $100 in sales, Apartment Investment and Management Company keeps $1.25 as profit after all expenses.
Operating Margin
Core operations generate 2.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.17 in profit for every $100 of shareholder equity.
ROA
Apartment Investment and Management Company generates $11.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Apartment Investment and Management Company produces operating cash flow of $24.11M, showing steady but balanced cash generation.
Free Cash Flow
Apartment Investment and Management Company generates weak or negative free cash flow of $-100.36M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.70 in free cash annually.
FCF Yield
AIV converts -11.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.007
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
15.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
3.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How AIV Stacks Against Its Sector Peers
| Metric | AIV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.32 | 24.23 | Better (Cheaper) |
| ROE | 317.20% | 659.00% | Weak |
| Net Margin | 125.34% | 4497.00% | Weak |
| Debt/Equity | 15.37 | -22.14 (disorted) | Distorted |
| Current Ratio | 1.13 | 13.87 | Neutral |
| ROA | 11.73% | -1390.00% (disorted) | Strong |
AIV 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 Investment and Management Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-75.33%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-247.20%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-29.73%
Industry Style: Income, Inflation Hedge, REIT
Declining