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Relative valuation derived from Real Estate sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 63.6GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
7.0%
Sector: 1.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, AMREP CORP. (AXR) receives a "Hold" rating with a composite score of 49.0/100, ranked #412 out of 4446 stocks. Key factor scores: Quality 64/100, Value 48/100, Momentum 56/100. This is quantitative analysis only — not investment advice.
AMREP CORP. (AXR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AMREP CORP. Do?
AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. It operates through two segments, Land Development and Homebuilding. The company sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. As of July 1, 2021, it owned approximately 18,000 acres in Rio Rancho, New Mexico. The company owns tracts of land in Colorado, including 1 property of approximately 160 acres planned for approximately 410 homes. It also owns subsurface oil, gas, and mineral interests covering an area of approximately 55,000 surface acres of land located in Rio Rancho. Additionally, the company focuses on developing single-family detached homes and attached townhomes. AMREP Corporation was incorporated in 1961 and is headquartered in Plymouth Meeting, Pennsylvania. AMREP CORP. (AXR) is classified as a micro-cap stock in the Real Estate sector. The company is led by CEO Christopher V. Vitale and employs approximately 20 people, headquartered in PLYMOUTH MEETING, Pennsylvania. With a market capitalization of $149M, AXR is one of the notable companies in the Real Estate sector.
AMREP CORP. (AXR) Stock Rating — Hold (April 2026)
As of April 2026, AMREP CORP. receives a Hold rating with a composite score of 49.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AXR ranks #412 out of 4,446 stocks in our coverage universe. Within the Real Estate sector, AMREP CORP. ranks #3 of 57 stocks, placing it in the top 10% of its Real Estate peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AXR Stock Price and 52-Week Range
AMREP CORP. (AXR) currently trades at $27.17. The stock lost $0.53 (1.9%) in the most recent trading session. The 52-week high for AXR is $29.00, which means the stock is currently trading -6.3% from its annual peak. The 52-week low is $17.60, putting the stock 54.4% above its annual trough. Recent trading volume was 7K shares, suggesting relatively thin trading activity.
Is AXR Overvalued or Undervalued? — Valuation Analysis
AMREP CORP. (AXR) carries a value factor score of 48/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 14.26x, compared to the Real Estate sector average of 32.31x — a discount of 56%. The price-to-book ratio stands at 1.00x, versus the sector average of 1.18x. The price-to-sales ratio is 2.82x, compared to 0.80x for the average Real Estate stock. On an enterprise value basis, AXR trades at 13.00x EV/EBITDA, versus 8.62x for the sector.
Overall, AXR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
AMREP CORP. Profitability — ROE, Margins, and Quality Score
AMREP CORP. (AXR) earns a quality factor score of 64/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 7.0%, compared to the Real Estate sector average of 1.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 6.8% versus the sector average of 0.8%.
The operating margin is 18.2% (sector: 3.7%). Net profit margin stands at 17.5%, versus 1.8% for the average Real Estate stock. Revenue growth is running at 22.4% on a trailing basis, compared to 6.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
AXR Debt, Balance Sheet, and Financial Health
AMREP CORP. has a debt-to-equity ratio of 0.0%, compared to the Real Estate sector average of 60.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 31.53x, indicating strong short-term liquidity. Total debt on the balance sheet is $21,000.
AXR has a beta of 0.57, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for AMREP CORP. is 55/100, reflecting average volatility within the normal range for its sector.
AMREP CORP. Revenue and Earnings History — Quarterly Trend
In TTM 2026, AMREP CORP. reported revenue of $49M and earnings per share (EPS) of $0.59. Net income for the quarter was $10M. Operating income came in at $11M.
In Q3 2026, AMREP CORP. reported revenue of $15M and earnings per share (EPS) of $0.59. Net income for the quarter was $3M. Revenue grew 93.8% year-over-year compared to Q3 2025. Operating income came in at $3M.
In Q2 2026, AMREP CORP. reported revenue of $9M and earnings per share (EPS) of $0.22. Net income for the quarter was $1M. Revenue grew -21.1% year-over-year compared to Q2 2025. Operating income came in at $1M.
In Q1 2026, AMREP CORP. reported revenue of $18M and earnings per share (EPS) of $0.88. Net income for the quarter was $5M. Revenue grew -6.5% year-over-year compared to Q1 2025. Operating income came in at $6M.
Over the past 8 quarters, AMREP CORP. has demonstrated a growth trajectory, with revenue expanding from $19M to $49M. Investors analyzing AXR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AXR Dividend Yield and Income Analysis
AMREP CORP. (AXR) does not currently pay a dividend. This is common among smaller companies in the Real Estate industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Real Estate dividend stocks may want to explore other Real Estate stocks or use the stock screener to filter by dividend yield.
AXR Momentum and Technical Analysis Profile
AMREP CORP. (AXR) has a momentum factor score of 56/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 6/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AXR vs Competitors — Real Estate Sector Ranking and Peer Comparison
Comparing AXR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AXR vs S&P 500 (SPY) comparison to assess how AMREP CORP. stacks up against the broader market across all factor dimensions.
AXR Next Earnings Date
No upcoming earnings date has been announced for AMREP CORP. (AXR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AXR? — Investment Thesis Summary
AMREP CORP. presents a balanced picture with arguments on both sides. The quality score of 64/100 indicates above-average profitability and business fundamentals.
In summary, AMREP CORP. (AXR) earns a Hold rating with a composite score of 49.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AXR stock.
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Institutional Research Dossier
AMREP CORP. (AXR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on AMREP Corporation (AXR). While the company exhibits strong profitability metrics compared to its real estate sector peers, its valuation appears stretched, and its growth prospects are uncertain. The company's reliance on a limited geographic area and the cyclical nature of the real estate market present significant risks, offsetting its positive financial performance.
The primary concern lies in the sustainability of AMREP's current profitability levels. The company's concentrated land holdings in Rio Rancho, New Mexico, expose it to regional economic fluctuations and potential shifts in demand. While the company's historical performance has been commendable, the lack of clear growth catalysts and the premium valuation warrant a cautious approach, justifying the Hold rating.
Business Strategy & Overview
AMREP Corporation operates primarily in the real estate sector, focusing on land development and homebuilding. The company's core business involves acquiring and developing land, primarily in Rio Rancho, New Mexico, and selling developed and undeveloped lots to homebuilders, commercial developers, and other parties. This land development segment constitutes a significant portion of AMREP's revenue stream. Additionally, the company engages in homebuilding, constructing single-family detached homes and attached townhomes, contributing to its overall revenue and profitability.
AMREP's strategic positioning is heavily reliant on its land holdings in Rio Rancho. The company's success is intrinsically linked to the economic health and population growth of this region. The company also owns subsurface oil, gas, and mineral interests covering an area of approximately 55,000 surface acres of land located in Rio Rancho, which could provide additional revenue streams, although the extent of this contribution is unclear. The company's strategy appears to be focused on maximizing the value of its existing land assets through strategic development and sales.
The company's product pipeline primarily consists of residential lots and homes in its existing land holdings. The company's ability to successfully develop and sell these properties is crucial to its future performance. The company's homebuilding operations are relatively small compared to larger national homebuilders, suggesting a focus on niche markets or specific segments within the Rio Rancho area. The company's strategic advantage, if any, lies in its deep understanding of the local market and its established presence in the region.
In the broader industry context, AMREP operates in a highly competitive and cyclical real estate market. The company faces competition from other land developers and homebuilders, both local and national. The company's performance is also subject to macroeconomic factors such as interest rates, employment levels, and consumer confidence. The company's ability to navigate these challenges and maintain its profitability will be critical to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
22.4%
Sector: 6.1%
+268% VS SCTR
Economic Moat Analysis
AMREP's economic moat is likely Nonexistent. The company's primary business of land development and homebuilding is characterized by intense competition and limited differentiation. While the company possesses significant land holdings in Rio Rancho, New Mexico, this alone does not constitute a sustainable competitive advantage. Land is a commodity, and its value is subject to market fluctuations and the availability of comparable properties.
The company does not appear to possess any significant network effects. The value of its land holdings does not increase as more people buy homes in the area, as the company is primarily a seller of land and homes, not a provider of a network-based service. Similarly, switching costs are negligible for homebuilders and buyers, as they can easily switch to alternative land developers or homebuilders without incurring significant costs.
While AMREP may possess some intangible assets in the form of brand recognition or local expertise, these are unlikely to be significant enough to create a durable competitive advantage. The company's brand is not widely recognized outside of its core market, and its local expertise can be replicated by other developers with sufficient resources and local knowledge.
The company does not appear to have any significant cost advantages. Its cost structure is likely similar to that of other land developers and homebuilders in the region. The company's scale is relatively small compared to larger national players, which may limit its ability to achieve economies of scale. Efficient scale is also not a relevant factor, as the land development and homebuilding industries are not characterized by natural monopolies or significant barriers to entry.
The lack of a discernible economic moat makes AMREP vulnerable to competition and market fluctuations. The company's profitability is highly dependent on its ability to acquire and develop land at competitive prices and to sell homes and lots at favorable margins. Any erosion of these margins due to increased competition or adverse market conditions could significantly impact the company's financial performance.
Financial Health & Profitability
AMREP's financial health presents a mixed picture. The company's recent revenue growth has been impressive, with a TTM revenue growth of 22.4% compared to the sector average of 6.1%. This suggests that the company has been successful in capitalizing on market opportunities and increasing its sales volume. However, it's crucial to assess the sustainability of this growth rate, considering the cyclical nature of the real estate market.
The company's profitability metrics are also strong compared to its peers. The company's operating margin of 18.2% and net margin of 17.5% significantly exceed the sector averages of 3.5% and 1.1%, respectively. This indicates that AMREP is operating efficiently and generating healthy profits from its operations. The company's ROE of 7.0% is also higher than the sector average of 0.9%, suggesting that the company is effectively utilizing its equity to generate returns.
The company's balance sheet appears to be in good shape, with a current ratio of 31.53, indicating strong liquidity and the ability to meet its short-term obligations. The company's debt-to-equity ratio is effectively zero, suggesting a conservative capital structure and minimal financial leverage. This reduces the company's exposure to interest rate risk and provides it with financial flexibility to pursue growth opportunities.
Analyzing the quarterly financial history reveals some volatility in the company's performance. While the company has consistently generated profits, the revenue and net income have fluctuated from quarter to quarter. For example, Q1 FY2026 showed a revenue of $17.85M and net income of $4.69M, while Q2 FY2026 showed a revenue of $9.40M and net income of $1.20M. This volatility highlights the sensitivity of the company's performance to market conditions and project timing.
The absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities. Free cash flow is a crucial metric for evaluating a company's ability to fund its operations, invest in growth, and return capital to shareholders. The lack of this data is a significant limitation in our analysis.
Valuation Assessment
AMREP's valuation appears stretched based on several key metrics. The company's P/E ratio of 45.8x is significantly higher than the sector average of 31.0x, suggesting that the stock is trading at a premium to its earnings. Similarly, the company's EV/EBITDA ratio of 11.9x is higher than the sector average of 8.6x, further indicating that the stock is overvalued relative to its earnings before interest, taxes, depreciation, and amortization.
The company's high valuation may be justified if it were experiencing rapid growth or possessing a significant competitive advantage. However, while the company's recent revenue growth has been strong, it is unclear whether this growth is sustainable in the long term. The company's lack of a discernible economic moat also raises concerns about its ability to maintain its profitability in the face of competition.
Comparing the company's valuation to its historical performance is challenging due to the limited data available. However, the company's recent financial performance has been strong, which may be contributing to the high valuation. It is important to consider whether the current valuation reflects a realistic assessment of the company's future prospects or an overly optimistic expectation of continued growth.
The absence of free cash flow data makes it difficult to perform a discounted cash flow (DCF) analysis, which is a common method for valuing companies. A DCF analysis would provide a more comprehensive assessment of the company's intrinsic value based on its expected future cash flows. Without this data, our valuation assessment is limited to relative valuation metrics.
Overall, the company's valuation appears to be at a premium compared to its sector peers. While the company's strong profitability and recent revenue growth are positive factors, the lack of a clear economic moat and the cyclical nature of the real estate market warrant a cautious approach. The current valuation may not fully reflect the risks associated with the company's business.
Risk & Uncertainty
AMREP faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. A primary risk is its geographic concentration. The company's significant land holdings in Rio Rancho, New Mexico, expose it to regional economic downturns and fluctuations in the local real estate market. A decline in the Rio Rancho economy or a decrease in demand for housing in the area could significantly impact the company's revenue and profitability.
The cyclical nature of the real estate market poses another significant risk. The real estate market is subject to boom-and-bust cycles, and a downturn in the market could lead to decreased demand for land and homes, resulting in lower sales volumes and reduced margins for AMREP. Changes in interest rates, mortgage availability, and consumer confidence can all impact the real estate market and affect AMREP's performance.
Competition from other land developers and homebuilders is also a risk. The real estate market is highly competitive, and AMREP faces competition from both local and national players. Increased competition could lead to price wars and reduced margins, negatively impacting the company's profitability. The company's relatively small size compared to larger national players may put it at a disadvantage in terms of resources and economies of scale.
Regulatory risks also exist. Changes in zoning regulations, building codes, or environmental regulations could increase the company's costs and delay its development projects. The company's subsurface oil, gas, and mineral interests are also subject to regulatory risks related to environmental protection and resource extraction.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAMREP's strong profitability metrics, significantly exceeding sector averages, demonstrate efficient operations and a competitive edge.
BULL VIEWThe company's debt-free balance sheet provides financial flexibility and reduces exposure to interest rate risk, positioning it well for future growth opportunities.
The Bear Case
BEAR VIEWAMREP's high valuation, with P/E and EV/EBITDA ratios exceeding sector averages, suggests the stock is overvalued and vulnerable to correction.
BEAR VIEWThe company's geographic concentration in Rio Rancho exposes it to significant regional economic risks, potentially impacting revenue and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AXR and 4,400+ other equities.
AMREP CORP. exhibits a 59% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.8%
Sector: 0.8%
Gross Margin
Pricing power and cost efficiency
—
Sector: 26.0%
Operating Margin
Core business profitability
18.2%
Sector: 3.7%
Net Margin
Bottom-line profitability
17.5%
Sector: 1.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
