REALTY INCOME CORP (O) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:O • US7561091049

61.16 USD
+0.38 (+0.63%)
At close: Jan 30, 2026
61.07 USD
-0.09 (-0.15%)
After Hours: 1/30/2026, 8:09:55 PM
Fundamental Rating

4

Taking everything into account, O scores 4 out of 10 in our fundamental rating. O was compared to 124 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • O had positive earnings in the past year.
  • In the past year O had a positive cash flow from operations.
  • In the past 5 years O has always been profitable.
  • In the past 5 years O always reported a positive cash flow from operatings.
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 0 2B -2B -4B -6B

1.2 Ratios

  • With a Return On Assets value of 1.35%, O perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
  • O has a Return On Equity (2.46%) which is in line with its industry peers.
  • The Return On Invested Capital of O (2.83%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for O is in line with the industry average of 3.05%.
  • The last Return On Invested Capital (2.83%) for O is above the 3 year average (2.51%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.35%
ROE 2.46%
ROIC 2.83%
ROA(3y)1.5%
ROA(5y)1.45%
ROE(3y)2.62%
ROE(5y)2.58%
ROIC(3y)2.51%
ROIC(5y)2.49%
O Yearly ROA, ROE, ROICO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4

1.3 Margins

  • O has a Profit Margin of 17.18%. This is in the better half of the industry: O outperforms 65.32% 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 89.52% of its industry peers.
  • O's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 92.56%, O belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
  • O's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 44.42%
PM (TTM) 17.18%
GM 92.56%
OM growth 3Y-1.7%
OM growth 5Y-2.42%
PM growth 3Y-2.35%
PM growth 5Y-11.32%
GM growth 3Y-0.27%
GM growth 5Y-0.26%
O Yearly Profit, Operating, Gross MarginsO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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2

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.
  • The number of shares outstanding for O has been increased compared to 1 year ago.
  • O has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for O is higher compared to a year ago.
O Yearly Shares OutstandingO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 20B 40B 60B

2.2 Solvency

  • O has an Altman-Z score of 1.04. This is a bad value and indicates that O is not financially healthy and even has some risk of bankruptcy.
  • O has a better Altman-Z score (1.04) than 75.81% of its industry peers.
  • A Debt/Equity ratio of 0.73 indicates that O is somewhat dependend on debt financing.
  • O has a better Debt to Equity ratio (0.73) than 79.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.04
ROIC/WACC0.39
WACC7.2%
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 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.
  • O has a Current ratio (0.81) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.81 indicates that O may have some problems paying its short term obligations.
  • The Quick ratio of O (0.81) 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 500M 1B 1.5B

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5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.86% over the past year.
  • The Earnings Per Share has been decreasing by -6.62% on average over the past years.
  • The Revenue has grown by 11.88% in the past year. This is quite good.
  • The Revenue has been growing by 28.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.86%
EPS 3Y1.4%
EPS 5Y-6.62%
EPS Q2Q%16.67%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.63% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 6.67% on average over the next years.
EPS Next Y32.96%
EPS Next 2Y28.87%
EPS Next 3Y20.41%
EPS Next 5Y13.63%
Revenue Next Year9.6%
Revenue Next 2Y7.72%
Revenue Next 3Y7.03%
Revenue Next 5Y6.67%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 56.63, which means the current valuation is very expensive for O.
  • O's Price/Earnings is on the same level as the industry average.
  • O's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
  • Based on the Price/Forward Earnings ratio of 37.58, the valuation of O can be described as expensive.
  • Based on the Price/Forward Earnings ratio, O is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, O is valued a bit more expensive.
Industry RankSector Rank
PE 56.63
Fwd PE 37.58
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 65.32% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.92
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's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • O has a very decent profitability rating, which may justify a higher PE ratio.
  • O's earnings are expected to grow with 20.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y28.87%
EPS Next 3Y20.41%

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5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 5.33%, O is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.98, 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 1.83.
Industry RankSector Rank
Dividend Yield 5.33%

5.2 History

  • The dividend of O has a limited annual growth rate of 4.20%.
  • O has been paying a dividend for at least 10 years, so it has 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

  • O pays out 298.20% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of O is growing, but earnings are growing more, so the dividend growth is sustainable.
DP298.2%
EPS Next 2Y28.87%
EPS Next 3Y20.41%
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 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 / 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 2 / 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 grow by 32.96% in the next year.