Alexandria Real Price To Sales vs. Return On Equity

ARE Stock  USD 104.93  3.09  2.86%   
Taking into consideration Alexandria Real's profitability measurements, Alexandria Real Estate may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Alexandria Real's ability to earn profits and add value for shareholders.

Alexandria Real Price To Sales Ratio

5.94

At present, Alexandria Real's Operating Cash Flow Sales Ratio is projected to increase slightly based on the last few years of reporting. At present, Alexandria Real's Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Net Income From Continuing Ops is expected to grow to about 295 M, whereas Income Before Tax is forecasted to decline to about 191.7 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.890.7023
Significantly Up
Slightly volatile
Operating Profit Margin0.330.377
Fairly Down
Pretty Stable
For Alexandria Real profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alexandria Real to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alexandria Real Estate utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alexandria Real's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alexandria Real Estate over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Is Diversified REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alexandria Real. If investors know Alexandria will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alexandria Real listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
6.484
Dividend Share
5.14
Earnings Share
1.63
Revenue Per Share
17.962
Quarterly Revenue Growth
0.109
The market value of Alexandria Real Estate is measured differently than its book value, which is the value of Alexandria that is recorded on the company's balance sheet. Investors also form their own opinion of Alexandria Real's value that differs from its market value or its book value, called intrinsic value, which is Alexandria Real's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alexandria Real's market value can be influenced by many factors that don't directly affect Alexandria Real's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alexandria Real's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alexandria Real is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alexandria Real's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Alexandria Real Estate Return On Equity vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Alexandria Real's current stock value. Our valuation model uses many indicators to compare Alexandria Real value to that of its competitors to determine the firm's financial worth.
Alexandria Real Estate is number one stock in price to sales category among its peers. It is rated second in return on equity category among its peers . The ratio of Price To Sales to Return On Equity for Alexandria Real Estate is about  287.24 . At present, Alexandria Real's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Alexandria Real by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Alexandria Return On Equity vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Alexandria Real

P/S

 = 

MV Per Share

Revenue Per Share

 = 
6.12 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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.

Alexandria Real

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0213
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.

Alexandria Return On Equity Comparison

Alexandria Real is currently under evaluation in return on equity category among its peers.

Alexandria Real Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Alexandria Real, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alexandria Real will eventually generate negative long term returns. The profitability progress is the general direction of Alexandria Real's change in net profit over the period of time. It can combine multiple indicators of Alexandria Real, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-15.9 M-15.1 M
Operating Income1.1 B1.1 B
Income Before Tax281 M191.7 M
Total Other Income Expense Net-807 M-766.7 M
Net Income281 M192.9 M
Income Tax Expense-188.6 M-179.1 M
Net Income Applicable To Common Shares599.9 M629.9 M
Net Income From Continuing Ops281 M295 M
Non Operating Income Net Other615.5 M646.3 M
Interest Income489.1 M513.6 M
Net Interest Income-74.2 M-77.9 M
Change To Netincome308.3 M323.7 M
Net Income Per Share 0.61  0.58 
Income Quality 5.80  6.09 
Net Income Per E B T 0.37  0.35 

Alexandria Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Alexandria Real. 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 Alexandria Real 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 Alexandria Real's important profitability drivers and their relationship over time.

Use Alexandria Real 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 Alexandria Real 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 Alexandria Real will appreciate offsetting losses from the drop in the long position's value.

Alexandria Real Pair Trading

Alexandria Real Estate Pair Trading Analysis

The ability to find closely correlated positions to Alexandria Real could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alexandria Real 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 Alexandria Real - 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 Alexandria Real Estate to buy it.
The correlation of Alexandria Real 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 Alexandria Real moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alexandria Real Estate 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 Alexandria Real 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Alexandria Real position

In addition to having Alexandria Real 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 Non-Metallic and Industrial Metal Mining Thematic Idea Now

Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 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 Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Alexandria Real Estate is a strong investment it is important to analyze Alexandria Real's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Alexandria Real's future performance. For an informed investment choice regarding Alexandria Stock, refer to the following important reports:
Check out Trending Equities.
You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project Alexandria Real's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alexandria Real Estate 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 Alexandria Real's income statement, its balance sheet, and the statement of cash flows.
Potential Alexandria Real investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Alexandria Real investors may work on each financial statement separately, they are all related. The changes in Alexandria Real's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Alexandria Real's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.