REALTY INCOME CORP (O) Fundamental Analysis & Valuation

NYSE:O • US7561091049

Current stock price

63.32 USD
-0.43 (-0.67%)
At close:
63.31 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

  • O had positive earnings in the past year.
  • O had a positive operating cash flow in the past year.
  • Each year in the past 5 years O has 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 2025 0 2B -2B -4B -6B

1.2 Ratios

  • O has a Return On Assets (1.45%) which is comparable to the rest of the industry.
  • O has a Return On Equity (2.68%) which is comparable to the rest of the industry.
  • O has a Return On Invested Capital (2.86%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for O is in line with the industry average of 3.13%.
  • 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 68.29% of its industry peers.
  • In the last couple of years the Profit Margin of O has declined.
  • The Operating Margin of O (45.06%) is better than 89.43% of its industry peers.
  • O's Operating Margin has been stable in the last couple of years.
  • O's Gross Margin of 92.54% is amongst the best of the industry. O outperforms 94.31% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), O is destroying value.
  • The number of shares outstanding for O has been increased compared to 1 year ago.
  • 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 1.07, we must say that O is in the distress zone and has some risk of bankruptcy.
  • O has a better Altman-Z score (1.07) than 76.42% 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 78.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.07
ROIC/WACC0.4
WACC7.08%
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

  • A Current Ratio of 1.13 indicates that O should not have too much problems paying its short term obligations.
  • O has a better Current ratio (1.13) than 60.16% of its industry peers.
  • 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.
  • O has a better Quick ratio (1.13) than 60.98% of its industry peers.
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.
  • O shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.07%.
  • 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

  • The Earnings Per Share is expected to grow by 12.53% on average over the next years. This is quite good.
  • Based on estimates for the next years, O will show a small growth in Revenue. The Revenue will grow by 6.36% on average per year.
EPS Next Y43.41%
EPS Next 2Y24.29%
EPS Next 3Y18.63%
EPS Next 5Y12.53%
Revenue Next Year6.32%
Revenue Next 2Y6.8%
Revenue Next 3Y7.78%
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 54.12, the valuation of O can be described as expensive.
  • O's Price/Earnings ratio is in line with the industry average.
  • O is valuated expensively when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
  • O is valuated quite expensively with a Price/Forward Earnings ratio of 37.74.
  • 67.48% of the companies in the same industry are more expensive than O, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of O to the average of the S&P500 Index (37.96), we can say O is valued inline with the index average.
Industry RankSector Rank
PE 54.12
Fwd PE 37.74
O Price Earnings VS Forward Price EarningsO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 RankSector Rank
P/FCF N/A
EV/EBITDA 17.17
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.
  • A more expensive valuation may be justified as O's earnings are expected to grow with 18.63% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y24.29%
EPS Next 3Y18.63%

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

5

5. O Dividend Analysis

5.1 Amount

  • O has a Yearly Dividend Yield of 5.14%, which is a nice return.
  • Compared to an average industry Dividend Yield of 7.71, 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 RankSector Rank
Dividend Yield 5.14%

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.
  • O has decreased its dividend recently.
Dividend Growth(5Y)2.89%
Div Incr Years1
Div Non Decr Years1
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.
  • The dividend of O is growing, but earnings are growing more, so the dividend growth is sustainable.
DP275.92%
EPS Next 2Y24.29%
EPS Next 3Y18.63%
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 (4/13/2026, 8:04:00 PM)

After market: 63.31 -0.01 (-0.02%)

63.32

-0.43 (-0.67%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-24
Earnings (Next)05-06
Inst Owners80.88%
Inst Owner Change-0.03%
Ins Owners0.12%
Ins Owner Change8.73%
Market Cap59.04B
Revenue(TTM)5.75B
Net Income(TTM)1.06B
Analysts69.33
Price Target68.54 (8.24%)
Short Float %2.65%
Short Ratio3.74
Dividend
Industry RankSector Rank
Dividend Yield 5.14%
Yearly Dividend3.2
Dividend Growth(5Y)2.89%
DP275.92%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-31
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)5.64%
PT rev (3m)7.33%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)2.57%
EPS NY rev (3m)5.94%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.86%
Valuation
Industry RankSector Rank
PE 54.12
Fwd PE 37.74
P/S 10.27
P/FCF N/A
P/OCF 14.78
P/B 1.5
P/tB 2.05
EV/EBITDA 17.17
EPS(TTM)1.17
EY1.85%
EPS(NY)1.68
Fwd EY2.65%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.28
OCFY6.77%
SpS6.17
BVpS42.3
TBVpS30.87
PEG (NY)1.25
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 1.07
F-Score6
WACC7.08%
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 Y43.41%
EPS Next 2Y24.29%
EPS Next 3Y18.63%
EPS Next 5Y12.53%
Revenue 1Y (TTM)9.07%
Revenue growth 3Y19.8%
Revenue growth 5Y28.4%
Sales Q2Q%11.02%
Revenue Next Year6.32%
Revenue Next 2Y6.8%
Revenue Next 3Y7.78%
Revenue Next 5Y6.36%
EBIT growth 1Y11.47%
EBIT growth 3Y23.26%
EBIT growth 5Y26.56%
EBIT Next Year117.87%
EBIT Next 3Y36.83%
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.


How profitable is REALTY INCOME CORP (O) stock?

REALTY INCOME CORP (O) has a profitability rating of 6 / 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 43.41% in the next year.


How sustainable is the dividend of REALTY INCOME CORP (O) stock?

The dividend rating of REALTY INCOME CORP (O) is 5 / 10 and the dividend payout ratio is 275.92%.