Apartment Investment & Management Co (AIV) Overview Apartment Investment & Management Co. is a multifamily real estate investment and operations company whose reported financial profile combines very high reported profit margins and conservative leverage with pronounced volatility in top-line and per‑share metrics. Margin Metrics and Balance Sheet The company shows unusually robust margin metrics:
Apartment Investment & Management Co. is a multifamily real estate investment and operations company whose reported financial profile combines very high reported profit margins and conservative leverage with pronounced volatility in top-line and per‑share metrics.
The company shows unusually robust margin metrics: gross margin reached 92.4%, operating margin 71.5% and net margin 48.4% in the most recent margin sample (period end 2022-12-31), indicating strong spread on reported revenue (Profit Margin Trends). Its balance sheet and market multiple also read as relatively conservative and value-oriented: debt-to-equity is 0.6831 and the current ratio is 3.3823, while the trailing P/E sits near 10.9x (10.8673) in the latest observation (Price-to-Earnings (PE) Ratio Trend and Return on Equity (ROE)).
Offsetting those positives are material signs of weakening top-line and earnings momentum and uneven cash-flow dynamics. Revenue and per‑share measures have swung sharply: consolidated revenue fell from $208.7M in 2024 to $138.5M in 2025 and recent revenue-per-share declined to $0.98 (2025-12-31) from $1.48 a year earlier (Revenue & Net Income and EPS Diluted & Revenue per Share). Reported EPS growth is negative year-over-year (-28.84%), and trailing net income has downshifted from six‑hundred‑plus million peaks to $92.2M most recently (Revenue & Net Income and Revenue & EPS Growth).
Cash-flow quality flags persist: cash flow trails earnings (0.5950) while recent financing cash flow is a TTM outflow of -$648.8M and investing cash flow is -$260.4M (Earnings Quality Analysis and Strategic Capital Allocation).
Key fundamentals to watch going forward are revenue per share (most recent $0.98) and diluted EPS trends (most recent EPS $0.65), the relationship of operating cash flow to net income (latest available OCF TTM $396.4M versus recent NI $92.2M), capital‑allocation flows (financing TTM -$648.8M; investing TTM -$260.4M), trailing ROE 11.6% and the prevailing P/E (~10.9x). Monitoring those metrics will clarify whether margins, cash generation and capital use are stabilizing or continue to diverge from reported earnings (Revenue & Net Income, EPS Diluted & Revenue per Share, Earnings Quality Analysis, Strategic Capital Allocation, Return on Equity (ROE), Price-to-Earnings (PE) Ratio Trend).
The foundation of business quality and long-term value creation
APARTMENT INVESTMENT & MANAGEMENT CO's revenue history shows pronounced volatility with several large swings. In the most recent sequence, revenue rose to $190.3M in 2022 and $208.7M in 2024 before falling to $138.5M in the latest 2025 period; an interim 2023 mid-year figure of $3.0M stands out as a sharp outlier. Earlier periods include very large-scale figures (e.g., $984.4M in 2014, $551.2M in 2018) and negative reported revenue points (e.g., -$418.0M in 2017 and -$366.8M in 2020), underscoring material swings over the multi-year record.
Net income reporting is sparser in the recent sample; the latest available net income is $92.2M for the period ending 2022-12-31. Prior net income points also show wide variation, including $472.1M in 2019 and $570.0M in 2018 (quarter), reflecting the same episodic pattern as revenue. The most recent quarterly revenue was $138.5M. The most recent reported net income was $92.2M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2025 to Dec 2025
Analyzing long-term margin stability and competitive positioning
APARTMENT INVESTMENT & MANAGEMENT CO's margins show a sharp improvement in the most recent year. For the period ending 2022-12-31, gross margin rose to 92.4% and operating margin to 71.5%, both the highest gross and operating levels in the provided series; net margin for the same period is 48.4%. These 2022 values follow earlier multi-year readings around the 60% level for gross margin (2013–2014, 2019, 2021) and show a strong move upward versus those recent years.
The series exhibits notable inflection points: several quarters in 2017–2019 recorded negative or very low gross and operating margins (e.g., 2019-03-31 gross -11.0% and operating -15.8%; 2019-06-30 gross 1.4% and operating -2.9%), followed by recovery to higher margins by 2019-12-31 (gross 66.0%, operating 60.8%, net 51.9%). More recently, 2021 showed gross 60.2% and operating 40.7% before the 2022 increase. The most recent gross margin was 92.4%, the most recent operating margin was 71.5%, and the most recent net profit margin was 48.4% (period end 2022-12-31).
Understanding Profit Margins
Between Jan 2025 and Dec 2025, Apartment Investment Management Co converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
APARTMENT INVESTMENT & MANAGEMENT CO's trailing twelve-month net income shows a marked decline in the most recent period. Net income TTM peaked at $666.2M as of 2018-12-31 and was $474.1M at 2019-12-31, then fell to $92.2M for the period ending 2022-12-31, indicating a clear inflection after 2018—2019 toward much lower reported earnings.
Operating cash flow TTM in the available data is relatively stable from 2015 through 2018 (e.g., $359.9M in 2015, $394.1M in 2017, $396.4M in 2018). The most recent net income ($92.2M, 2022-12-31) is materially below the latest operating cash flow figure available in this file ($396.4M, 2018-12-31); note the operating cash flow figure is from an earlier period than the latest net income. The latest Net Income (TTM) is $92.2M (period end 2022-12-31). The latest Operating Cash Flow (TTM) in the dataset is $396.4M (period end 2018-12-31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
APARTMENT INVESTMENT & MANAGEMENT CO's trailing twelve-month return on equity has moved down in the most recent period, with the latest reported ROE at 11.6% for the period ending 2022-12-31. Earlier observations show a peak at 24.2% (2019-12-31) after readings of 20.2% (2014-12-31) and 18.0% (2017-12-31), so the recent value represents a material decline from the 2019 high.
The most recent trailing twelve-month return on equity was 11.6%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
APARTMENT INVESTMENT & MANAGEMENT CO's most recent cash-flow observations show a large net financing outflow in the latest period and continued investing outflows in the most recent investing observation. The trailing‑twelve‑month financing cash flow at period end 2025-12-31 is a net outflow of -$648.8M. The latest available investing cash flow TTM (period end 2023-12-31) is a net outflow of -$260.4M. Operating cash flow in this dataset is reported through 2018, showing a TTM inflow of $396.4M at period end 2018-12-31.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
APARTMENT INVESTMENT & MANAGEMENT CO’s reported trailing twelve-month P/E ratios show relatively low and stable levels through 2014–2019, ranging from 1.2x to 3.0x. The series includes a peak of 3.0x in 2015, a trough of 1.2x in 2018, and a modest rebound to 2.0x in 2019.
The most recent data point for 2022 shows a marked increase to 10.9x, a clear inflection upward relative to the prior reported years. The most recent Price-to-Earnings ratio observed was 10.9x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.