Alexandria Real Estate Equities, Inc. Fundamental Analysis (NYSE: ARE)
Alexandria Real Estate Equities, Inc. Fundamental Analysis (NYSE: ARE)
Alexandria Real Estate Equities, Inc. (NYSE: ARE) shows weak financial fundamentals with a PE ratio of -8.66, profit margin of -30.57%, and ROE of -5.70%. The company generates $2.7B in annual revenue with weak year-over-year growth of -2.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -12.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARE's fundamental strength across five key dimensions:
Efficiency Score
WeakARE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARE trades at attractive valuation levels.
Growth Score
WeakARE faces weak or negative growth trends.
Financial Health Score
ModerateARE shows balanced financial health with some risks.
Profitability Score
WeakARE struggles to sustain strong margins.
Key Financial Metrics
Is ARE Expensive or Cheap?
P/E Ratio
ARE trades at -8.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARE's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Alexandria Real Estate Equities, Inc. at 0.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -10.37 times EBITDA. This is generally considered low.
How Well Does ARE Make Money?
Net Profit Margin
For every $100 in sales, Alexandria Real Estate Equities, Inc. keeps $-30.57 as profit after all expenses.
Operating Margin
Core operations generate -45.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.70 in profit for every $100 of shareholder equity.
ROA
Alexandria Real Estate Equities, Inc. generates $-2.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alexandria Real Estate Equities, Inc. generates strong operating cash flow of $1.18B, reflecting robust business health.
Free Cash Flow
Alexandria Real Estate Equities, Inc. generates strong free cash flow of $810.50M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.65 in free cash annually.
FCF Yield
ARE converts 10.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-8.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.06
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How ARE Stacks Against Its Sector Peers
| Metric | ARE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -8.66 | 23.75 | Better (Cheaper) |
| ROE | -5.70% | 762.00% | Weak |
| Net Margin | -30.57% | 2564.00% | Weak |
| Debt/Equity | 0.85 | -36.86 (disorted) | Distorted |
| Current Ratio | 0.11 | 38.40 | Weak Liquidity |
| ROA | -2.61% | 255.00% | Weak |
ARE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alexandria Real Estate Equities, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
16.09%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-237.32%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
18.58%
Industry Style: Income, Inflation Hedge, REIT
High Growth