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
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall O gets a fundamental rating of 4 out of 10. We evaluated O against 122 industry peers in the Diversified REITs industry. While O is still in line with the averages on profitability rating, there are concerns on its financial health. O is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • O had positive earnings in the past year.
  • O had a positive operating cash flow in the past year.
  • In the past 5 years O has always been profitable.
  • Of the past 5 years O 4 years had a positive operating cash flow.
O Yearly Net Income VS EBIT VS OCF VS FCFO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B -4B -6B

1.2 Ratios

  • O's Return On Assets of 1.35% is in line compared to the rest of the industry. O outperforms 54.92% of its industry peers.
  • O has a Return On Equity of 2.46%. This is comparable to the rest of the industry: O outperforms 54.92% of its industry peers.
  • With a Return On Invested Capital value of 2.83%, O perfoms like the industry average, outperforming 51.64% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for O is in line with the industry average of 3.08%.
  • The 3 year average ROIC (2.71%) for O is below the current ROIC(2.83%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.35%
ROE 2.46%
ROIC 2.83%
ROA(3y)1.4%
ROA(5y)1.36%
ROE(3y)2.51%
ROE(5y)2.4%
ROIC(3y)2.71%
ROIC(5y)2.44%
O Yearly ROA, ROE, ROICO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

1.3 Margins

  • O's Profit Margin of 17.18% is fine compared to the rest of the industry. O outperforms 63.93% of its industry peers.
  • O's Profit Margin has declined in the last couple of years.
  • O has a Operating Margin of 44.42%. This is amongst the best in the industry. O outperforms 89.34% of its industry peers.
  • O's Operating Margin has been stable in the last couple of years.
  • With an excellent Gross Margin value of 92.56%, O belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
  • In the last couple of years the Gross Margin of O has remained more or less at the same level.
Industry RankSector Rank
OM 44.42%
PM (TTM) 17.18%
GM 92.56%
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%
O Yearly Profit, Operating, Gross MarginsO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so O is destroying value.
  • O has more shares outstanding than it did 1 year ago.
  • 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.
O Yearly Shares OutstandingO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
O Yearly Total Debt VS Total AssetsO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • O has an Altman-Z score of 1.13. This is a bad value and indicates that O is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of O (1.13) is better than 78.69% 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's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. O outperforms 77.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.13
ROIC/WACC0.4
WACC7.13%
O Yearly LT Debt VS Equity VS FCFO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

2.3 Liquidity

  • O has a Current Ratio of 0.81. This is a bad value and indicates that O is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.81, O perfoms like the industry average, outperforming 42.62% of the companies in the same industry.
  • O has a Quick Ratio of 0.81. This is a bad value and indicates that O is not financially healthy enough and could expect problems in meeting its short term obligations.
  • O has a Quick ratio (0.81) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.81
O Yearly Current Assets VS Current LiabilitesO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 96.94% over the past year.
  • The Earnings Per Share has been growing by 10.53% on average over the past years. This is quite good.
  • The Revenue has grown by 9.07% in the past year. This is quite good.
  • 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

  • O is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
  • The Revenue is expected to grow by 5.71% on average over the next years.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
O Yearly Revenue VS EstimatesO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
O Yearly EPS VS EstimatesO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0.5 1 1.5 2

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1

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.72, the valuation of O can be described as expensive.
  • O's Price/Earnings ratio is in line with the industry average.
  • O's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.10.
  • O is valuated quite expensively with a Price/Forward Earnings ratio of 40.96.
  • Based on the Price/Forward Earnings ratio, O is valued a bit cheaper than the industry average as 67.21% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, O is valued a bit more expensive.
Industry RankSector Rank
PE 34.72
Fwd PE 40.96
O Price Earnings VS Forward Price EarningsO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of O indicates a slightly more expensive valuation: O is more expensive than 69.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.92
O Per share dataO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • O has a very decent profitability rating, which 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.91%, O is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.76, O has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, O pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.91%

5.2 History

  • The dividend of O has a limited annual growth rate of 4.20%.
  • O has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.2%
Div Incr Years0
Div Non Decr Years0
O Yearly Dividends per shareO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 298.20% 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.
DP298.2%
EPS Next 2Y-5.57%
EPS Next 3Y-3.89%
O Yearly Income VS Free CF VS DividendO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B -4B -6B
O Dividend Payout.O Dividend Payout, showing the Payout Ratio.O Dividend Payout.PayoutRetained Earnings

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REALTY INCOME CORP

NYSE:O (2/27/2026, 8:23:38 PM)

After market: 67.03 +0.03 (+0.04%)

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
Earnings (Next)05-04
Inst Owners81.1%
Inst Owner Change0.12%
Ins Owners0.1%
Ins Owner Change8.16%
Market Cap61.63B
Revenue(TTM)5.75B
Net Income(TTM)962.12M
Analysts70
Price Target64.88 (-3.16%)
Short Float %3.62%
Short Ratio5.04
Dividend
Industry RankSector Rank
Dividend Yield 4.91%
Yearly Dividend3.28
Dividend Growth(5Y)4.2%
DP298.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.28%
Min EPS beat(2)-38.76%
Max EPS beat(2)-3.79%
EPS beat(4)0
Avg EPS beat(4)-26.76%
Min EPS beat(4)-41.01%
Max EPS beat(4)-3.79%
EPS beat(8)0
Avg EPS beat(8)-27.11%
EPS beat(12)2
Avg EPS beat(12)-18.28%
EPS beat(16)3
Avg EPS beat(16)-20.83%
Revenue beat(2)2
Avg Revenue beat(2)3.81%
Min Revenue beat(2)2.87%
Max Revenue beat(2)4.74%
Revenue beat(4)4
Avg Revenue beat(4)3.1%
Min Revenue beat(4)1.46%
Max Revenue beat(4)4.74%
Revenue beat(8)8
Avg Revenue beat(8)3.16%
Revenue beat(12)12
Avg Revenue beat(12)3.11%
Revenue beat(16)14
Avg Revenue beat(16)2.83%
PT rev (1m)1.29%
PT rev (3m)1.57%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-10.63%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.57%
Valuation
Industry RankSector Rank
PE 34.72
Fwd PE 40.96
P/S 11
P/FCF N/A
P/OCF 16.38
P/B 1.58
P/tB 2.18
EV/EBITDA 17.92
EPS(TTM)1.93
EY2.88%
EPS(NY)1.64
Fwd EY2.44%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY6.11%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)N/A
PEG (5Y)3.3
Graham Number42.94
Profitability
Industry RankSector Rank
ROA 1.35%
ROE 2.46%
ROCE 3.58%
ROIC 2.83%
ROICexc 2.85%
ROICexgc 3.39%
OM 44.42%
PM (TTM) 17.18%
GM 92.56%
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 RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Debt/EBITDA 5.71
Cap/Depr 194.59%
Cap/Sales 86.68%
Interest Coverage 2.37
Cash Conversion 75.51%
Profit Quality N/A
Current Ratio 0.81
Quick Ratio 0.81
Altman-Z 1.13
F-Score6
WACC7.13%
ROIC/WACC0.4
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 1Y11.31%
EBIT growth 3Y23.26%
EBIT growth 5Y26.56%
EBIT Next Year115.96%
EBIT Next 3Y33.76%
EBIT Next 5Y19.93%
FCF growth 1Y-474.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.94%
OCF growth 3YN/A
OCF growth 5YN/A

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.