What To Hold: Top 5 Hold-Rated Dividend Stocks: NLY, AGNC, AEC, RPAI, HTA
Associated Estates Realty (NYSE: AEC) shares currently have a dividend yield of 5.40%. 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 82.35. The average volume for Associated Estates Realty has been 833,600 shares per day over the past 30 days. Associated Estates Realty has a market cap of $706.4 million and is part of the real estate industry. Shares are down 13.2% year to date as of the close of trading on Monday. TheStreet Ratings rates Associated Estates Realty as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- AEC's revenue growth has slightly outpaced the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ASSOCIATED ESTATES RLTY CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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 $0.02 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings ($0.38 versus $0.02).
- The gross profit margin for ASSOCIATED ESTATES RLTY CORP is rather low; currently it is at 19.81%. 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, AEC's net profit margin of 3.58% is significantly lower than the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 93.1% when compared to the same quarter one year ago, falling from $23.67 million to $1.64 million.
- You can view the full Associated Estates Realty Ratings Report.
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