AvalonBay Communities (AVB)
Real Estate · $26.4B market cap · SEC CIK 0000915912
fundamentals score out of 100
Next reports on Oct 27, 2026, after the close, with analysts expecting $1.18 in earnings per share.
The case for AVB
- 33% of revenue drops through to net profit.
- Pays a 3.9% dividend while you wait.
- Gross margin of 63% absorbs cost shocks.
- Moves less than the market (beta 0.20).
The case against
- Priced at 25.7× earnings while earnings per share are shrinking (-11.1%).
- Long-term debt of $9.3B would take 6 years of operating cash flow to repay.
- Earnings per share fell 11.1%.
- Priced at 8.6× sales with revenue growing only 3.4%.
- Current liabilities exceed current assets (ratio 0.08).
- Dividend takes 97% of earnings, leaving little cushion.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 56 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 31 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 66 |
| Momentumhow the price has behaved lately | 53 |
| Stabilityhow violently it moves, what it owes and what it pays you | 76 |
- Each factor except momentum is half fixed thresholds, half rank among the 31 Real Estate companies.
Key numbers
| Price / earnings | 25.7× |
|---|---|
| Price / book | 2.23× |
| Price / sales | 8.6× |
| Revenue growth (YoY) | +3.4% |
| EPS growth (YoY) | -11.1% |
| Gross margin | 63% |
| Operating margin | 20% |
| Net margin | 33% |
| Return on equity | 9% |
| Debt / equity | 0.75× |
| Current ratio | 0.08 |
| Dividend yield | 3.87% |
| Beta | 0.20 |
| 52-week range | $153.20 – $198.54 |
| Position in that range | 68% of the way up |
| 3-month return | -4.5% |
| 1-year return | +2.9% |
Five years of financials, as filed
Pulled from AvalonBay Communities's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $7.0M | $7.1M | $7.7M | $6.3M | $3.1M |
| Operating income | $2.0B | $1.9B | $1.8B | $1.7B | $1.5B |
| Net income | — | $1.1B | $929M | — | — |
| Operating cash flow | $1.7B | $1.6B | $1.6B | $1.4B | $1.2B |
| Total assets | $22.2B | $21.0B | $20.7B | $20.5B | $19.9B |
| Total liabilities | $10.4B | $9.1B | $8.9B | $9.2B | $9.0B |
| Shareholder equity | $11.6B | $11.9B | $11.8B | $11.3B | $10.9B |
| Cash | $187M | $109M | $398M | $613M | $420M |
| Long-term debt | $9.3B | $8.1B | $8.0B | $8.3B | $8.1B |
| Operating margin | 28698.5% | 26974.7% | 23190.7% | 26865.9% | 47239.8% |
| Net margin | — | 15280.2% | 12028.3% | — | — |
| Diluted shares | 143M | 142M | 142M | 140M | 140M |
Share count is essentially flat over 4 years.
What AvalonBay Communities says it does
AvalonBay Communities, Inc. (the "Company," "we," "our" and "us" which terms, unless the context otherwise requires, refer to AvalonBay Communities, Inc. together with its subsidiaries), is a Maryland corporation that has elected to be treated as a real estate investment trust ("REIT") for federal income tax purposes. We develop, redevelop, acquire, own and operate apartment communities in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in our expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. We use the term apartment communities to refer to properties that consist of apartment homes or townhomes or a combination of both. We focus on leading metropolitan areas that we believe have offered, and will continue to offer, the opportunity for superior risk-adjusted…
Risk factors AVB lists in its 10-K
- Risks related to investments through acquisitions, construction, development, and joint ventures
- Development, redevelopment and construction risks could affect our profitability
- Attractive investment opportunities may not be available, which could adversely affect our profitability
- Acquisitions may not yield anticipated results
- Failure to succeed in new markets, or with new brands and community formats, or in activities other than the development, ownership and operation of residential rental communities may have adverse consequences
- We are exposed to risks associated with investment in technology and environmentally focused venture funds and companies
- We are exposed to risks associated with investment in, and management of, joint ventures
- Mezzanine debt and preferred equity investments could cause us to incur expenses and experience delays in recovery, which could adversely affect our results of operations
- Land we hold with no current intent to develop may be subject to future impairment charges
- Our various technology-related initiatives to improve our operating margins and customer experience may fail to perform as expected and may expose us to additional risks
- Risks related to liquidity and financing
- Insufficient cash flow could affect our debt financing and create refinancing risk
- Rising interest rates could increase interest costs and could affect the market price of our common stock, and efforts to hedge such risk could be ineffective and cause us to incur additional costs
- Bond financing and zoning and other compliance requirements could limit our income, restrict the use of communities and cause favorable financing to become unavailable