AvalonBay Communities Return On Equity vs. EBITDA

AVB Stock  USD 225.05  1.94  0.85%   
Based on AvalonBay Communities' profitability indicators, AvalonBay Communities 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 AvalonBay Communities' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.07882594
Current Value
0.0647
Quarterly Volatility
0.01970695
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current year's Sales General And Administrative To Revenue is expected to grow to 0.03, whereas Price To Sales Ratio is forecasted to decline to 7.26. At present, AvalonBay Communities' Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 1.8 B, whereas Net Income is forecasted to decline to about 491.7 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.720.6447
Moderately Up
Very volatile
Net Profit Margin0.290.3339
Fairly Down
Very volatile
Operating Profit Margin0.460.6172
Way Down
Slightly volatile
Pretax Profit Margin0.280.3375
Significantly Down
Slightly volatile
Return On Assets0.03350.0449
Way Down
Slightly volatile
Return On Equity0.06470.0788
Significantly Down
Slightly volatile
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.
  

AvalonBay Communities' Revenue Breakdown by Earning Segment

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Is Multi-Family Residential 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 AvalonBay Communities. If investors know AvalonBay 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 AvalonBay Communities 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
1.161
Dividend Share
6.75
Earnings Share
7.31
Revenue Per Share
20.613
Quarterly Revenue Growth
0.094
The market value of AvalonBay Communities is measured differently than its book value, which is the value of AvalonBay that is recorded on the company's balance sheet. Investors also form their own opinion of AvalonBay Communities' value that differs from its market value or its book value, called intrinsic value, which is AvalonBay Communities' 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 AvalonBay Communities' market value can be influenced by many factors that don't directly affect AvalonBay Communities' 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 AvalonBay Communities' value and its price as these two are different measures arrived at by different means. Investors typically determine if AvalonBay Communities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AvalonBay Communities' 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.

AvalonBay Communities EBITDA 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 is number one stock in ebitda category among its peers totaling about  22,265,017,026  of EBITDA per Return On Equity. At present, AvalonBay Communities' Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AvalonBay Communities' earnings, one of the primary drivers of an investment's value.

AvalonBay EBITDA 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

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0881
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

AvalonBay Communities

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.96 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

AvalonBay EBITDA Comparison

AvalonBay Communities is currently under evaluation in ebitda 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income16.1 M16.9 M
Operating Income1.7 B1.8 B
Net Income928.4 M491.7 M
Income Tax Expense10.2 M9.6 M
Income Before Tax938.6 M542.9 M
Total Other Income Expense Net-778.1 M-739.2 M
Net Income Applicable To Common Shares1.3 B1.4 B
Net Income From Continuing Ops927.5 M708.1 M
Non Operating Income Net Other685.1 M719.4 M
Interest Income48.1 M32.8 M
Net Interest Income-214 M-224.7 M
Change To Netincome-499.1 M-474.2 M
Net Income Per Share 6.57  3.32 
Income Quality 1.68  1.63 
Net Income Per E B T 0.99  1.62 

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.
Pair CorrelationCorrelation Matching

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.

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Run Cleaning Thematic Idea Now

Cleaning
Cleaning Theme
Compnanies producing and distributing cleaning products, supplies, and accessories. The Cleaning theme has 42 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 Cleaning Theme or any other thematic opportunities.
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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:
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For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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.
Potential AvalonBay Communities investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although AvalonBay Communities investors may work on each financial statement separately, they are all related. The changes in AvalonBay Communities's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on AvalonBay Communities'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.