A Short Intro for UDR Investors

It's been a great afternoon session for UDR investors, who saw their shares rise 1.8% to a price of $42.23 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.

UDR Has Elevated P/B and P/E Ratios:

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U. The company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 24.81 and an average price to book (P/B) ratio of 2.24. In contrast, UDR has a trailing 12 month P/E ratio of 136.2 and a P/B ratio of 3.59.

When we divide UDR's P/E ratio by its expected EPS growth rate of the next five years, we obtain its PEG ratio of -2.47. Since it's negative, the company has negative growth expectations, and most investors will probably avoid the stock unless it has an exceptionally low P/E and P/B ratio.

Growing Revenues With Increasing Reinvestment in the Business:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $1,152 $1,241 $1,291 $1,517
Operating Margins 18.8% 10.6% 10.5% 15.5%
Net Margins 16.05% 5.18% 11.62% 5.73%
Net Income (MM) $185 $64 $150 $87
Net Interest Expense (MM) -126 -147 -129 -163
Net Interest Expense (MM) -$126 -$147 -$129 -$163
Depreciation & Amort. (MM) -$7 -$10 -$13 -$14
Earnings Per Share $0.63 $0.2 $0.48 $0.31
EPS Growth n/a -68.25% 140.0% -35.42%
Diluted Shares (MM) 286 295 302 329
Free Cash Flow (MM) $446 $430 $497 $584
Capital Expenditures (MM) -$184 -$174 -$167 -$236
Net Current Assets (MM) -$4,972 -$5,094 -$5,558 -$6,015
Current Ratio 0.8 1.22 1.12 0.2
Long Term Debt (MM) $4,708 $4,977 $5,413 $5,487
Net Debt / EBITDA 15.61 23.18 19.29 21.99
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.