Associated Estates Realty (NYSE: AEC) shares currently have a dividend yield of 4.80%. Associated Estates Realty Corporation is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It specializes in owning and managing apartment communities in the Midwest, Mid-Atlantic and Southeast regions of the United States. The company has a P/E ratio of 104.93 The average volume for Associated Estates Realty has been 698,600 shares per day over the past 30 days Associated Estates Realty has a market cap of $794.6 million and is part of the real estate industry Shares are down 2.9% year to date as of the close of trading on Wednesday TheStreet Ratings rates Associated Estates Realty as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year and poor profit margins. Highlights from the ratings report include:
- AEC's revenue growth has slightly outpaced the industry average of 12.1%. Since the same quarter one year prior, revenues rose by 17.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ASSOCIATED ESTATES RLTY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ASSOCIATED ESTATES RLTY CORP turned its bottom line around by earning $0.03 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus $0.03).
- The gross profit margin for ASSOCIATED ESTATES RLTY CORP is rather low; currently it is at 18.40%. Regardless of AEC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 22.99% trails the industry average.
- In its most recent trading session, AEC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- You can view the full Associated Estates Realty Ratings Report.
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