Monday, August 19, 2013

Analysis of AIMCO


An American real estate company


Company: AIMCO

Business: This American real estate company have four businesses: Property Operations, Redevelopment, Acquisitions/Dispositions and finally Retail Leasing. The biggest part is the property operations since they are the biggest landowner and operators of apartment communities in the US.

Active: Only in the US and more specifically Atlanta, Boston, Chicago, Denver, Los Angeles, Manhattan, Miami, Orange County, Philadelphia, Phoenix, San Diego, San Francisco, Seattle, Suburban New York, New Jersey and Washington DC

P/E: 51.1



containing values of P/E, P/B, ROE as well as dividend


 The P/E is appalling with 51.1 and the P/B is even worse with 4.6. This gives a very clear "stay out of it" from Grahams formula. The earnings to sales is at 8% and the ROE is not so bad with almost 9%. The book to debt is not looking good with the ratio of 0.18 and in the last five years the yearly growth has been -6.7%. This gives a motivated P/E of max 8. They do pay a dividend that is ok for the US with 2.6% however that represents 135% of the earnings and in the last five years they have paid out more in dividends then what they have earned.

Conclusion: Do not invest in this company! If you have stock in it then run away as fast as possible!
 
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