Alexandria Real Estate Equities logged a 2.6% change during today's afternoon session, and is now trading at a price of $128.07 per share.
Over the last year, Alexandria Real Estate Equities logged a 4.4% change, with its stock price reaching a high of $135.45 and a low of $90.73. Over the same period, the stock underperformed the S&P 500 index by -19.6%. AThe company's 50-day average price was $118.2. Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. Based in Pasadena, CA, the Large-Cap Real Estate company has 568 full time employees. Alexandria Real Estate Equities has returned a 4.0% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,327 | $1,531 | $1,886 | $2,114 | $2,589 | $2,886 |
| Net Margins | 28% | 24% | 41% | 27% | 20% | 4% |
| Net Income (M) | $379 | $363 | $771 | $571 | $522 | $104 |
| Net Interest Expense (M) | $157 | $174 | $172 | $142 | $94 | $74 |
| Depreciation & Amort. (M) | $478 | $545 | $698 | $821 | $1,002 | $1,093 |
| Diluted Shares (M) | 103 | 113 | 126 | 147 | 162 | 171 |
| Earnings Per Share | $3.52 | $3.12 | $6.01 | $3.82 | $3.18 | $0.54 |
| EPS Growth | n/a | -11.36% | 92.63% | -36.44% | -16.75% | -83.02% |
| Avg. Price | $107.33 | $129.49 | $146.61 | $176.47 | $172.63 | $128.1 |
| P/E Ratio | 30.41 | 41.37 | 24.31 | 46.08 | 54.29 | 237.22 |
| Free Cash Flow (M) | -$357 | -$541 | -$563 | -$1,080 | -$2,013 | -$1,788 |
| CAPEX (M) | $927 | $1,225 | $1,445 | $2,090 | $3,307 | $3,418 |
| Total Debt (M) | $5,478 | $6,777 | $7,563 | $8,792 | $10,160 | $11,316 |
a Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Alexandria Real Estate Equities has a trailing twelve month P/E ratio of 110.5, compared to an average of 27.5 for the Real Estate sector. Based on its EPS guidance of $3.54, the company has a forward P/E ratio of 33.4. The 0.1% compound average growth rate of Alexandria Real Estate Equities's historical and projected earnings per share yields a PEG ratio of 1364.29. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Alexandria Real Estate Equities in terms of its equity because its P/B ratio is 1.2 while the sector average is 2.1. The company's shares are currently trading 253.4% below their Graham number.
Alexandria Real Estate Equities Has an Analyst Consensus of Some Upside Potential:
The 12 analysts following Alexandria Real Estate Equities have set target prices ranging from $127.0 to $186.0 per share, for an average of $143.58 with a buy rating. The company is trading -10.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Alexandria Real Estate Equities has an average amount of shares sold short because 2.7% of the company's shares are sold short. Institutions own 97.8% of the company's shares, and the insider ownership rate stands at 0.94%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 15% stake in the company is worth $3,430,315,316.
