10Y annualized return is
negative
at -6.7% per year
BXP has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Moderate Price-to-Book Ratio
Strong Operating Profit Margin
Strong Liquidity Ratios
Adequate Cash Reserves
Strong Leasing Performance
Premier Workplace Segment Leadership
Strategic Development Projects
Growth in Development Pipeline
Positive Market Sentiment and Corporate Earnings Growth
Extremely High Price-to-Earnings Ratio
Low Net Profit Margin
Low Return on Equity
High Debt Levels
Low Interest Coverage
Interest Rate Uncertainty
Limited Exposure to GSA Leases
Potential Impact of Economic Conditions
Challenges in Life Science Sector Demand
Overall, BXP demonstrates a strong business quality with its premier market positioning, strong leasing performance, and proactive development strategy. However, uncertainties regarding interest rates and economic conditions may pose risks. The future prospects appear positive, driven by an active development pipeline and favorable market sentiment, despite potential challenges in certain sectors.
Analysis Date: January 29, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Boston Properties, Inc. (BXP) is a company that builds and owns high-quality office buildings in major cities like Boston, New York, and San Francisco. They take care of these properties, making sure they are well-maintained and attractive to businesses. Essentially, BXP focuses on creating and managing great workspaces for companies, helping them find the right place to operate.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
BOSTON--(BUSINESS WIRE)--BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, today ...
Reflecting on past financial losses, I emphasize the importance of diversification to mitigate risks, as exemplified by my own experience with real es...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$3.49
Current Market Price: $60.70
IV/P Ratio: 0.06x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-1639.9999999999998%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for BXP
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (666.64)
P/B ratio ≤ 1.5 (1.76)
Current ratio ≥ 2.0 (2.51x)
Long-term debt < Net current assets (9.08x)
Margin of safety (-1639.9999999999998%)
BXP does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
0.25%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
41.45%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
0.42%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The operating profit margin stands at 22.27%, indicating that the company retains a good portion of revenue as profit from operations, showcasing operational efficiency.
The net profit margin is very low at 0.42%, suggesting that the company struggles to convert revenue into actual profit after all expenses, which is a concern for long-term profitability.
The return on equity (ROE) is only 0.25%, indicating that the company is not efficiently generating profits from shareholders' equity, which could deter investors.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
2.14x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.51x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The current ratio is 2.51 and the quick ratio is also 2.51, suggesting that the company has ample short-term assets to cover its liabilities, indicating solid liquidity.
The cash per share is $7.97, which provides a cushion for the company, further enhancing its financial flexibility in times of need.
The debt-to-equity ratio is very high at 3.14, and the debt-to-assets ratio is 65.11%, indicating significant leverage which could pose risks in adverse market conditions.
The interest coverage ratio is only at 1.18, suggesting that the company barely earns enough to cover its interest obligations, which is a red flag for financial health.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
BXP demonstrated exceptional leasing activity with over 2.3 million square feet leased in Q4 2024, the highest quarterly leasing since Q2 2019, indicating strong demand for their properties.
BXP primarily competes in the premier workplace segment, which has seen significantly lower vacancy rates and higher asking rents compared to the broader market. This indicates strong competitive positioning.
BXP is actively developing new premier workplace projects that have pre-leased significant portions, indicating confidence in future demand and effective capital allocation.
BXP highlighted concerns regarding rising interest rates that may impact borrowing costs and overall market dynamics, introducing potential risks to future profitability.
BXP's limited exposure to GSA leases may pose risks if government policies shift or if federal office space requirements decrease, though current impacts seem manageable.
BXP has a robust development pipeline, including significant projects in markets with high demand, suggesting strong growth prospects.
BXP anticipates a favorable leasing environment driven by corporate earnings growth and increasing return-to-office behavior, which may stimulate future leasing activity.
Economic uncertainties, including inflation and potential government fiscal policies, could adversely affect BXP's operational performance and market conditions.
Weakening demand in the life science sector may impact BXP's lab properties, indicating a potential risk in achieving expected occupancy and rental rates.