REALTY INCOME CORP (O) Stock Fundamental Analysis
NYSE:O • US7561091049
67 USD
+0.4 (+0.6%)
At close: Feb 27, 2026
67.03 USD
+0.03 (+0.04%)
After Hours: 2/27/2026, 8:23:38 PM
Taking everything into account, O scores 4 out of 10 in our fundamental rating. O was compared to 122 industry peers in the Diversified REITs industry. O has a medium profitability rating, but doesn't score so well on its financial health evaluation. O is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year O was profitable.
- In the past year O had a positive cash flow from operations.
- O had positive earnings in each of the past 5 years.
- Each year in the past 5 years O had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.45%, O perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
- O has a Return On Equity (2.68%) which is in line with its industry peers.
- O has a Return On Invested Capital (2.86%) which is comparable to the rest of the industry.
- O had an Average Return On Invested Capital over the past 3 years of 2.71%. This is in line with the industry average of 3.09%.
- The 3 year average ROIC (2.71%) for O is below the current ROIC(2.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 2.68% | ||
| ROIC | 2.86% |
ROA(3y)1.4%
ROA(5y)1.36%
ROE(3y)2.51%
ROE(5y)2.4%
ROIC(3y)2.71%
ROIC(5y)2.44%
1.3 Margins
- Looking at the Profit Margin, with a value of 18.41%, O is in the better half of the industry, outperforming 65.04% of the companies in the same industry.
- O's Profit Margin has declined in the last couple of years.
- O's Operating Margin of 45.06% is amongst the best of the industry. O outperforms 89.43% of its industry peers.
- In the last couple of years the Operating Margin of O has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 92.54%, O belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
- O's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.06% | ||
| PM (TTM) | 18.41% | ||
| GM | 92.54% |
OM growth 3Y2.89%
OM growth 5Y-1.43%
PM growth 3Y-10.87%
PM growth 5Y-5.17%
GM growth 3Y-0.25%
GM growth 5Y-0.24%
2. Health
2.1 Basic Checks
- O has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, O has more shares outstanding
- The number of shares outstanding for O has been increased compared to 5 years ago.
- Compared to 1 year ago, O has a worse debt to assets ratio.
2.2 Solvency
- O has an Altman-Z score of 1.11. This is a bad value and indicates that O is not financially healthy and even has some risk of bankruptcy.
- O has a Altman-Z score of 1.11. This is in the better half of the industry: O outperforms 78.05% of its industry peers.
- O has a Debt/Equity ratio of 0.73. This is a neutral value indicating O is somewhat dependend on debt financing.
- O has a Debt to Equity ratio of 0.73. This is in the better half of the industry: O outperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.4
WACC7.1%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that O should not have too much problems paying its short term obligations.
- O has a Current ratio (1.13) which is in line with its industry peers.
- A Quick Ratio of 1.13 indicates that O should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.13, O is doing good in the industry, outperforming 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- O shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 96.94%, which is quite impressive.
- Measured over the past years, O shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.53% on average per year.
- O shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.07%.
- O shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.40% yearly.
EPS 1Y (TTM)96.94%
EPS 3Y10.51%
EPS 5Y10.53%
EPS Q2Q%369.57%
Revenue 1Y (TTM)9.07%
Revenue growth 3Y19.8%
Revenue growth 5Y28.4%
Sales Q2Q%11.02%
3.2 Future
- The Earnings Per Share is expected to grow by 0.40% on average over the next years.
- O is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y-15.24%
EPS Next 2Y-5.57%
EPS Next 3Y-3.89%
EPS Next 5Y0.4%
Revenue Next Year5.9%
Revenue Next 2Y5.81%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- O is valuated quite expensively with a Price/Earnings ratio of 34.72.
- O's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.07. O is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 40.96, which means the current valuation is very expensive for O.
- 67.48% of the companies in the same industry are more expensive than O, based on the Price/Forward Earnings ratio.
- O's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 40.96 |
4.2 Price Multiples
- O's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. O is more expensive than 67.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.59 |
4.3 Compensation for Growth
- The decent profitability rating of O may justify a higher PE ratio.
- A cheap valuation may be justified as O's earnings are expected to decrease with -3.89% in the coming years.
PEG (NY)N/A
PEG (5Y)3.3
EPS Next 2Y-5.57%
EPS Next 3Y-3.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.86%, O is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 7.13, O has a dividend in line with its industry peers.
- O's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
- The dividend of O has a limited annual growth rate of 2.89%.
- O has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 275.92% of the earnings are spent on dividend by O. This is not a sustainable payout ratio.
- O's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP275.92%
EPS Next 2Y-5.57%
EPS Next 3Y-3.89%
67
+0.4 (+0.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners81.1%
Inst Owner Change0.12%
Ins Owners0.1%
Ins Owner Change8.16%
Market Cap61.63B
Revenue(TTM)5.75B
Net Income(TTM)1.06B
Analysts70
Price Target64.88 (-3.16%)
Short Float %3.62%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend3.2
Dividend Growth(5Y)2.89%
DP275.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27 2026-02-27 (0.27)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)83.35%
Min EPS beat(2)-3.79%
Max EPS beat(2)170.5%
EPS beat(4)1
Avg EPS beat(4)26.12%
Min EPS beat(4)-38.76%
Max EPS beat(4)170.5%
EPS beat(8)1
Avg EPS beat(8)-4.64%
EPS beat(12)2
Avg EPS beat(12)-5.07%
EPS beat(16)4
Avg EPS beat(16)-4.09%
Revenue beat(2)2
Avg Revenue beat(2)3.33%
Min Revenue beat(2)1.91%
Max Revenue beat(2)4.74%
Revenue beat(4)4
Avg Revenue beat(4)3.21%
Min Revenue beat(4)1.91%
Max Revenue beat(4)4.74%
Revenue beat(8)8
Avg Revenue beat(8)3%
Revenue beat(12)12
Avg Revenue beat(12)3.03%
Revenue beat(16)14
Avg Revenue beat(16)2.64%
PT rev (1m)1.29%
PT rev (3m)1.35%
EPS NQ rev (1m)2.61%
EPS NQ rev (3m)-14.84%
EPS NY rev (1m)0.51%
EPS NY rev (3m)7.35%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 40.96 | ||
| P/S | 10.72 | ||
| P/FCF | N/A | ||
| P/OCF | 15.43 | ||
| P/B | 1.56 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 17.59 |
EPS(TTM)1.93
EY2.88%
EPS(NY)1.64
Fwd EY2.44%
FCF(TTM)-0.85
FCFYN/A
OCF(TTM)4.34
OCFY6.48%
SpS6.25
BVpS42.87
TBVpS31.3
PEG (NY)N/A
PEG (5Y)3.3
Graham Number43.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 2.68% | ||
| ROCE | 3.62% | ||
| ROIC | 2.86% | ||
| ROICexc | 2.88% | ||
| ROICexgc | 3.76% | ||
| OM | 45.06% | ||
| PM (TTM) | 18.41% | ||
| GM | 92.54% | ||
| FCFM | N/A |
ROA(3y)1.4%
ROA(5y)1.36%
ROE(3y)2.51%
ROE(5y)2.4%
ROIC(3y)2.71%
ROIC(5y)2.44%
ROICexc(3y)2.72%
ROICexc(5y)2.45%
ROICexgc(3y)3.37%
ROICexgc(5y)3.04%
ROCE(3y)3.43%
ROCE(5y)3.09%
ROICexgc growth 3Y10.44%
ROICexgc growth 5Y1.03%
ROICexc growth 3Y8.36%
ROICexc growth 5Y-2.36%
OM growth 3Y2.89%
OM growth 5Y-1.43%
PM growth 3Y-10.87%
PM growth 5Y-5.17%
GM growth 3Y-0.25%
GM growth 5Y-0.24%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 189.35% | ||
| Cap/Sales | 83.13% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 78.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.11 |
F-Score6
WACC7.1%
ROIC/WACC0.4
Cap/Depr(3y)253.06%
Cap/Depr(5y)400.43%
Cap/Sales(3y)115.49%
Cap/Sales(5y)183.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)96.94%
EPS 3Y10.51%
EPS 5Y10.53%
EPS Q2Q%369.57%
EPS Next Y-15.24%
EPS Next 2Y-5.57%
EPS Next 3Y-3.89%
EPS Next 5Y0.4%
Revenue 1Y (TTM)9.07%
Revenue growth 3Y19.8%
Revenue growth 5Y28.4%
Sales Q2Q%11.02%
Revenue Next Year5.9%
Revenue Next 2Y5.81%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y11.47%
EBIT growth 3Y23.26%
EBIT growth 5Y26.56%
EBIT Next Year115.96%
EBIT Next 3Y33.76%
EBIT Next 5Y19.93%
FCF growth 1Y-514.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.8%
OCF growth 3Y15.93%
OCF growth 5Y29.06%
REALTY INCOME CORP / O FAQ
Can you provide the ChartMill fundamental rating for REALTY INCOME CORP?
ChartMill assigns a fundamental rating of 4 / 10 to O.
Can you provide the valuation status for REALTY INCOME CORP?
ChartMill assigns a valuation rating of 1 / 10 to REALTY INCOME CORP (O). This can be considered as Overvalued.
What is the profitability of O stock?
REALTY INCOME CORP (O) has a profitability rating of 6 / 10.
What is the financial health of REALTY INCOME CORP (O) stock?
The financial health rating of REALTY INCOME CORP (O) is 2 / 10.
Can you provide the expected EPS growth for O stock?
The Earnings per Share (EPS) of REALTY INCOME CORP (O) is expected to decline by -15.24% in the next year.