AvalonBay Communities Return On Equity vs. Profit Margin
| A1VB34 Stock | BRL 345.88 4.52 1.32% |
For AvalonBay Communities profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AvalonBay Communities to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AvalonBay Communities utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AvalonBay Communities's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AvalonBay Communities over time as well as its relative position and ranking within its peers.
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AvalonBay Communities Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AvalonBay Communities's current stock value. Our valuation model uses many indicators to compare AvalonBay Communities value to that of its competitors to determine the firm's financial worth. AvalonBay Communities is rated third in return on equity category among its peers. It also is rated third in profit margin category among its peers fabricating about 4.31 of Profit Margin per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value AvalonBay Communities by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AvalonBay Communities' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.AvalonBay Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
AvalonBay Communities |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.48 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
AvalonBay Profit Margin Comparison
AvalonBay Communities is rated second in profit margin category among its peers.
AvalonBay Communities Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AvalonBay Communities, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AvalonBay Communities will eventually generate negative long term returns. The profitability progress is the general direction of AvalonBay Communities' change in net profit over the period of time. It can combine multiple indicators of AvalonBay Communities, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
As of December 31, 2020, the Company owned or held a direct or indirect ownership interest in 291 apartment communities containing 86,025 apartment homes in 11 states and the District of Columbia, of which 18 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New YorkNew Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Companys expansion markets consisting of Southeast Florida and Denver, Colorado . AVALONBAY CODRN operates under REITResidential classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 2966 people.
AvalonBay Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AvalonBay Communities. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AvalonBay Communities position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AvalonBay Communities' important profitability drivers and their relationship over time.
Use AvalonBay Communities in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AvalonBay Communities position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AvalonBay Communities will appreciate offsetting losses from the drop in the long position's value.AvalonBay Communities Pair Trading
AvalonBay Communities Pair Trading Analysis
The ability to find closely correlated positions to AvalonBay Communities could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AvalonBay Communities when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AvalonBay Communities - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AvalonBay Communities to buy it.
The correlation of AvalonBay Communities is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AvalonBay Communities moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AvalonBay Communities moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AvalonBay Communities can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your AvalonBay Communities position
In addition to having AvalonBay Communities in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Small Cap ETFs Thematic Idea Now
Small Cap ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Small Cap ETFs theme has 168 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Cap ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in AvalonBay Stock
When determining whether AvalonBay Communities offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AvalonBay Communities' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Avalonbay Communities Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Avalonbay Communities Stock:Check out Trending Equities. For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
To fully project AvalonBay Communities' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AvalonBay Communities at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AvalonBay Communities' income statement, its balance sheet, and the statement of cash flows.