REALTY INCOME CORP (O) Fundamental Analysis & Valuation

NYSE:O • US7561091049

Current stock price

61.15 USD
+0.46 (+0.76%)
At close:
61.16 USD
+0.01 (+0.02%)
After Hours:

This O fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. O Profitability Analysis

1.1 Basic Checks

  • In the past year O was profitable.
  • O had a positive operating cash flow in the past year.
  • 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.
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 has a Return On Assets (1.45%) which is in line with its industry peers.
  • O has a Return On Equity of 2.68%. This is comparable to the rest of the industry: O outperforms 58.20% of its industry peers.
  • O has a Return On Invested Capital (2.86%) which is in line with its industry peers.
  • 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 3.11%.
  • The 3 year average ROIC (2.71%) for O is below the current ROIC(2.86%), indicating increased profibility in the last year.
Industry RankSector 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%
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 has a Profit Margin of 18.41%. This is in the better half of the industry: O outperforms 68.03% of its industry peers.
  • O's Profit Margin has declined in the last couple of years.
  • O has a Operating Margin of 45.06%. This is amongst the best in the industry. O outperforms 89.34% 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 93.44% 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 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%
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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3

2. O Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so O 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.
  • O has a worse debt/assets ratio than last year.
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

  • Based on the Altman-Z score of 1.01, we must say that O is in the distress zone and has some risk of bankruptcy.
  • O's Altman-Z score of 1.01 is fine compared to the rest of the industry. O outperforms 76.23% of its industry peers.
  • A Debt/Equity ratio of 0.73 indicates that O is somewhat dependend on debt financing.
  • The Debt to Equity ratio of O (0.73) is better than 78.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.01
ROIC/WACC0.4
WACC7.12%
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 1.13. This is a normal value and indicates that O is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.13, O perfoms like the industry average, outperforming 59.02% of the companies in the same industry.
  • O has a Quick Ratio of 1.13. This is a normal value and indicates that O is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of O (1.13) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.13
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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6

3. O Growth Analysis

3.1 Past

  • O shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, which is quite good.
  • Looking at the last year, O shows a quite strong growth in Revenue. The Revenue has grown by 9.07% in the last year.
  • Measured over the past years, O shows a very strong growth in Revenue. The Revenue has been growing by 28.40% on average per year.
EPS 1Y (TTM)19.39%
EPS 3Y-6.47%
EPS 5Y0%
EPS Q2Q%39.13%
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.53% yearly.
  • O is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.36% yearly.
EPS Next Y42.97%
EPS Next 2Y22.76%
EPS Next 3Y15.92%
EPS Next 5Y12.53%
Revenue Next Year6.78%
Revenue Next 2Y6.94%
Revenue Next 3Y7.38%
Revenue Next 5Y6.36%

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 accelerating.
  • 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 2029 2030 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. O Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 52.26, the valuation of O can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as O.
  • The average S&P500 Price/Earnings ratio is at 24.75. O is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 36.56, O can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of O indicates a somewhat cheap valuation: O is cheaper than 68.03% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of O to the average of the S&P500 Index (22.10), we can say O is valued expensively.
Industry RankSector Rank
PE 52.26
Fwd PE 36.56
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

  • Based on the Enterprise Value to EBITDA ratio, O is valued a bit more expensive than 67.21% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.61
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

  • The 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 15.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y22.76%
EPS Next 3Y15.92%

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5

5. O Dividend Analysis

5.1 Amount

  • O has a Yearly Dividend Yield of 5.39%, which is a nice return.
  • O's Dividend Yield is comparable with the industry average which is at 7.54.
  • Compared to an average S&P500 Dividend Yield of 1.89, O pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.39%

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
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 275.92% of its income as dividend. This is not a sustainable payout ratio.
  • O's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP275.92%
EPS Next 2Y22.76%
EPS Next 3Y15.92%
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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O Fundamentals: All Metrics, Ratios and Statistics

REALTY INCOME CORP

NYSE:O (3/30/2026, 6:24:00 PM)

After market: 61.16 +0.01 (+0.02%)

61.15

+0.46 (+0.76%)

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 Owners80.77%
Inst Owner Change0.17%
Ins Owners0.12%
Ins Owner Change8.13%
Market Cap57.02B
Revenue(TTM)5.75B
Net Income(TTM)1.06B
Analysts70
Price Target68.08 (11.33%)
Short Float %3.22%
Short Ratio4.44
Dividend
Industry RankSector Rank
Dividend Yield 5.39%
Yearly Dividend3.2
Dividend Growth(5Y)2.89%
DP275.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-27
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.82%
Min EPS beat(2)-19.85%
Max EPS beat(2)-3.79%
EPS beat(4)0
Avg EPS beat(4)-21.47%
Min EPS beat(4)-38.76%
Max EPS beat(4)-3.79%
EPS beat(8)0
Avg EPS beat(8)-28.43%
EPS beat(12)1
Avg EPS beat(12)-20.94%
EPS beat(16)3
Avg EPS beat(16)-15.99%
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)0%
PT rev (3m)1.6%
EPS NQ rev (1m)65.4%
EPS NQ rev (3m)70.33%
EPS NY rev (1m)2.26%
EPS NY rev (3m)5.62%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)2.29%
Valuation
Industry RankSector Rank
PE 52.26
Fwd PE 36.56
P/S 9.92
P/FCF N/A
P/OCF 14.27
P/B 1.45
P/tB 1.98
EV/EBITDA 16.61
EPS(TTM)1.17
EY1.91%
EPS(NY)1.67
Fwd EY2.74%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.28
OCFY7.01%
SpS6.17
BVpS42.3
TBVpS30.88
PEG (NY)1.22
PEG (5Y)N/A
Graham Number33.37
Profitability
Industry RankSector 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 RankSector 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 1.01
F-Score6
WACC7.12%
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)19.39%
EPS 3Y-6.47%
EPS 5Y0%
EPS Q2Q%39.13%
EPS Next Y42.97%
EPS Next 2Y22.76%
EPS Next 3Y15.92%
EPS Next 5Y12.53%
Revenue 1Y (TTM)9.07%
Revenue growth 3Y19.8%
Revenue growth 5Y28.4%
Sales Q2Q%11.02%
Revenue Next Year6.78%
Revenue Next 2Y6.94%
Revenue Next 3Y7.38%
Revenue Next 5Y6.36%
EBIT growth 1Y11.47%
EBIT growth 3Y23.26%
EBIT growth 5Y26.56%
EBIT Next Year117.3%
EBIT Next 3Y36.93%
EBIT Next 5Y21.31%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for REALTY INCOME CORP?

ChartMill assigns a fundamental rating of 5 / 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 3 / 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 42.97% in the next year.