Boston Properties, Inc. (NYSE:BXP) (Trend analysis) is a company worth to look into from a fundamental point of view. Indeed the company has a return on equity of 8.7% compared to 9.6% for the Financial sector. You can also note that earnings per share (EPS) has grown by 19.1% on average for the last 5 years, indicative of consistent growth in earnings.
The price-earnings ratio of Boston Properties, Inc. (NYSE:BXP) stands at 34.33, which is higher than the sector average of 17.9. An explanation of the higher P/E ratio is that earnings per share growth of the company is higher than the sector 5-year average growth of 3.6%.
Also it is interesting to look into the ratio of debt to equity ratio to check if the company is not too much reliant on the outside funding to finance its growth. Boston Properties, Inc.(BXP) has a debt to equity ratio of 177% which is a reasonable figure and is below the Financial sector sector average of 182.5%. The company has a current ratio of 4.65. This ratio should be higher than one (ideally two) and is an indicator to show if the company is able to finance its short term obligations. Indeed it should have higher short term assets to dispose in order to cover for its short term liabilities.
For reference, it is important to look at these two ratios as important debt can lead to artificially high profitability ratios and company can get into trouble when a drop in sales occurs and/or higher financing costs when interest rate go upwards.
From an income perspective, Boston Properties, Inc.(BXP) has a dividend yield of 1.4%. The dividend growth rate has evolved at the pace of -1.3% over the last 5 years and the payout ratio stands at the high level of 198%.
BXP has a Market Cap of $18.91 billion. The company’s stock year-to-date performance is in negative territory, at -3.77%. Boston Properties, Inc. (BXP) reported last quarter earnings on April 27. The REIT – Office company announced earnings per share of $1.3 against a consensus Street estimate of $1.24, beating the average estimate by $0.06. This corresponds to an increase of $0.04 compared to the same quarter of the previous fiscal year.
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There are currently twenty-five analysts that cover Boston Properties, Inc.stock. Of those twenty-five, eighteen have a Buy rating, seven have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $148.77.
A recent analyst activity consisted of Stifel Nicolaus downgrading their Buy rating to Hold on June 25. On the date of report, the stock closed at $123.26.
Deutsche Bank reiterated their Buy stance on May 5, and increased their price target on BXP stock from $152 to $154. This corresponds to a 24.94% upside from the last closing price. On the date of report, the stock closed at $129.65.
Boston Properties, Inc., a real estate investment trust (REIT), together with its subsidiaries, engages in the ownership and development of office properties. Its properties are located in Boston, Massachusetts; Washington, D.C.; midtown Manhattan, New York; San Francisco, California; and Princeton, New Jersey. As of December 31, 2008, the company owned interests in 147 properties, totaling approximately 49.8 million net rentable square feet and structured parking for vehicles containing approximately 11.2 million square feet. Its properties also included 143 office properties, 1 hotel, and 3 retail properties. In addition, the company owned or controlled an undeveloped land totaling approximately 509.3 acres. Boston Properties, Inc. has elected to be taxed as REIT under the Internal Revenue Code and would not be subject to federal income taxes, if it distributes approximately at least 90% of its taxable income to its shareholders. The company was founded in 1970 and is based in Boston, Massachusetts.