Is UDR, Inc. (UDR) a Warren Buffett Stock?
Partial Buffett fit - meets 5/9 key criteria, but with reservations.
5/9 criteria passed
Capped from C to D. ROIC under 8% on both TTM and 5y average - business doesn't earn enough on capital invested; EPS dropped more than 50% at the worst point in the last 5 years - cyclical or fragile; Net debt is more than 5x EBITDA - balance sheet is stretched What are deal-breaker caps?
Warren Buffett's Criteria, Applied to UDR
ROIC ≥ 15%
Gross margin ≥ 40%
Owner earnings yield ≥ 5%
5y profitable
Net Debt / EBITDA ≤ 3
Revenue CAGR ≥ 8%
EPS CAGR ≥ 8%
FCF / Net income ≥ 0.8
Debt / Equity ≤ 1
How UDR Scores on Other Strategies
Live Financial Snapshot
Market cap
$13.56B
P/E (TTM)
24.6x
ROIC (TTM)
4.71%
Gross margin
46.0%
Other Warren Buffett fit reports
Frequently Asked Questions
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Key terms in this analysis
Educational tool, not investment advice. Scores are computed from publicly-available financial data against published investing-strategy criteria. We do not claim that Warren Buffett personally owns or recommends UDR.