AvalonBay Communities, Inc. (AVB)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I ask what I am buying and what I am paying. AvalonBay is a residential REIT that owns and operates apartment communities in Boston, New York/New Jersey, the Mid-Atlantic, Seattle, California and expansion markets. That is understandable: rent collections, development and asset value. In the quarter ended 2026-06-30, revenue was $777.8 million and net income was $155.7 million, a 20.02% net margin—respectable, though the data flag weak profit momentum without a clear period. Because this is a REIT, depreciation distorts EPS and P/E. The right measures are FFO/AFFO, and those are not in the data, so I lean on dividend yield, leverage, revenue trend and price-to-book. At the close on 2026-08-24, the shares were $68.14, a market cap of $25.2 billion. FairStock's P/B is 0.80, P/E is 9.35, dividend yield is 3.87%, FCF yield is 5.4%, and its FairStock Score is 51/100. A discount to book and a near-4% dividend can be attractive if the assets are sound. But debt-to-equity is 0.75, Altman Z is 1.50, ROCE is 2.63%, and Piotroski is 6/9—not a fortress balance sheet, and returns on capital are modest. The 52-week range of $63.68 to $198.63 shows how far sentiment has fallen. FairStock gives no Lynch category because only 0 years of filed results are available, so I cannot rely on a historical classification. My conclusion: a cheap-looking but leveraged apartment landlord with a mixed earnings record. The price is not demanding, but I need evidence that FFO/AFFO, occupancy and debt metrics are improving before calling it a bargain.

In plain English: AvalonBay owns and manages apartment communities in large U.S. metro areas, earning rent from tenants. In the quarter ended 2026-06-30, it reported $777.8 million of revenue and $155.7 million of net income, so the core business is still profitable. The stock trades below its accounting value and pays a 3.87% yearly dividend, but profits have weakened and the shares are near the bottom of their 52-week range, making the price look inexpensive though not clearly safe.

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Data as of 2026-08-24 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer