Avalonbay (AVB) Fundamental Analysis: Revenue, Earnings & Valuation

7.66 / 10

Outperform

AVB demonstrates strong fundamentals, highlighted by a 9.72% ROE, 38.78% net margin, and a 3.9% dividend yield. Key strengths include high accounts receivable and total assets turnover ratios, supporting operational efficiency. However, the net profit to operating revenue ratio sits in the lowest performance group, indicating margin compression risk. Overall, the fundamental score of 7.7/10 supports an Outperform stance, yet vigilance is needed on profitability trends.

Analysis Checks(9/10)

ROE (diluted) (YoY growth rate %)

Value7.65

Score3/3

Weight24.83%

1M Return2.07%

Current liabilities / Total liabilities (%)

Value53.71

Score3/3

Weight4.41%

1M Return0.40%

Accounts receivable turnover ratio

Value22.30

Score3/3

Weight3.79%

1M Return0.35%

Cash-UP

Value-0.03

Score3/3

Weight26.99%

1M Return2.47%

Interest coverage ratio (EBIT / Interest expense) (%)

Value42.48

Score2/3

Weight-6.83%

1M Return-0.70%

Total assets turnover ratio

Value0.93

Score3/3

Weight4.36%

1M Return0.40%

Net profit / Total operating revenue (%)

Value34.75

Score1/3

Weight4.25%

1M Return0.38%

Current assets / Total assets (%)

Value42.04

Score3/3

Weight4.41%

1M Return0.40%

Cash-MV

Value0.14

Score3/3

Weight28.18%

1M Return2.40%

Net profit / Total profit (%)

Value100.11

Score2/3

Weight5.61%

1M Return0.50%

Is AVB fundamentally strong?

AVB scores 7.66/10 on fundamentals and holds a Discounted valuation at present. Backed by its 8.84% ROE, 34.75% net margin, 23.41 P/E ratio, 2.08 P/B ratio, and -2.76% earnings growth, these metrics solidify its Outperform investment rating.