REALTY INCOME CORP (O) Fundamental Analysis & Valuation
NYSE:O • US7561091049
65 USD
+0.2 (+0.31%)
At close: Mar 6, 2026
64.75 USD
-0.25 (-0.38%)
After Hours: 3/6/2026, 8:04:00 PM
This O fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall O gets a fundamental rating of 5 out of 10. We evaluated O against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. O Profitability Analysis
1.1 Basic Checks
- In the past year O was profitable.
- In the past year O had a positive cash flow from operations.
- Each year in the past 5 years O has been profitable.
- Each year in the past 5 years O had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of O (1.45%) is comparable to the rest of the industry.
- O's Return On Equity of 2.68% is in line compared to the rest of the industry. O outperforms 55.74% 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 3.10%.
- The last Return On Invested Capital (2.86%) for O is above the 3 year average (2.71%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 18.41%, O is doing good in the industry, outperforming 64.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of O has declined.
- The Operating Margin of O (45.06%) is better than 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 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. O Health Analysis
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.
- 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.
2.2 Solvency
- Based on the Altman-Z score of 1.08, we must say that O is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of O (1.08) is better than 76.23% of its industry peers.
- A Debt/Equity ratio of 0.73 indicates that O is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.73, O is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.41
WACC7%
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 comparable to the rest of the industry.
- A Quick Ratio of 1.13 indicates that O should not have too much problems paying its short term obligations.
- O has a better Quick ratio (1.13) than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
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%.
- The Revenue has been growing by 28.40% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, O will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.53% on average per year.
- 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 Year6.88%
Revenue Next 2Y6.79%
Revenue Next 3Y8.11%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. O Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 55.56, the valuation of O can be described as expensive.
- O's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 26.29. O is valued rather expensively when compared to this.
- O is valuated quite expensively with a Price/Forward Earnings ratio of 38.86.
- O's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. O is cheaper than 68.03% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, O is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.56 | ||
| Fwd PE | 38.86 |
4.2 Price Multiples
- 64.75% of the companies in the same industry are cheaper than O, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.36 |
4.3 Compensation for Growth
- O's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of O may justify a higher PE ratio.
- A more expensive valuation may be justified as O's earnings are expected to grow with 15.92% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y22.76%
EPS Next 3Y15.92%
5. O Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.91%, O is a good candidate for dividend investing.
- O's Dividend Yield is comparable with the industry average which is at 7.04.
- Compared to an average S&P500 Dividend Yield of 1.82, O pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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 more than its dividend. This makes the dividend growth sustainable.
DP275.92%
EPS Next 2Y22.76%
EPS Next 3Y15.92%
O Fundamentals: All Metrics, Ratios and Statistics
65
+0.2 (+0.31%)
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 Cap60.61B
Revenue(TTM)5.75B
Net Income(TTM)1.06B
Analysts70
Price Target64.88 (-0.18%)
Short Float %2.95%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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)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)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 | 55.56 | ||
| Fwd PE | 38.86 | ||
| P/S | 10.54 | ||
| P/FCF | N/A | ||
| P/OCF | 15.17 | ||
| P/B | 1.54 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 17.36 |
EPS(TTM)1.17
EY1.8%
EPS(NY)1.67
Fwd EY2.57%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)4.28
OCFY6.59%
SpS6.17
BVpS42.3
TBVpS30.88
PEG (NY)1.29
PEG (5Y)N/A
Graham Number33.37
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 | 1.08 |
F-Score6
WACC7%
ROIC/WACC0.41
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 Year6.88%
Revenue Next 2Y6.79%
Revenue Next 3Y8.11%
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 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.