REALTY INCOME CORP (O) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:O - US7561091049 - REIT
58.17 USD
-0.12 (-0.21%)
58.1481 USD
-0.02 (-0.04%)
We assign a fundamental rating of 4 out of 10 to O. O was compared to 126 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.
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.
O had positive earnings in each of the past 5 years.
O had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
O has a Return On Assets (1.35%) which is in line with its industry peers.
O's Return On Equity of 2.46% is in line compared to the rest of the industry. O outperforms 52.76% of its industry peers.
O has a Return On Invested Capital of 2.83%. This is comparable to the rest of the industry: O outperforms 52.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for O is in line with the industry average of 3.06%.
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 Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 17.18%, O is in the better half of the industry, outperforming 64.57% of the companies in the same industry.
In the last couple of years the Profit Margin of O has declined.
O has a Operating Margin of 44.42%. This is amongst the best in the industry. O outperforms 88.98% of its industry peers.
In the last couple of years the Operating Margin of O has declined.
O's Gross Margin of 92.56% is amongst the best of the industry. O outperforms 94.49% 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 Rank | Sector 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%
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.
Compared to 5 years ago, O has more shares outstanding
Compared to 1 year ago, O has a worse debt to assets ratio.
2.2 Solvency
O has an Altman-Z score of 0.99. This is a bad value and indicates that O is not financially healthy and even has some risk of bankruptcy.
O's Altman-Z score of 0.99 is fine compared to the rest of the industry. O outperforms 75.59% 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 77.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.4
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.81 indicates that O may have some problems paying its short term obligations.
O's Current ratio of 0.81 is in line compared to the rest of the industry. O outperforms 44.09% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
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.
O shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.78% yearly.
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.
Based on estimates for the next years, O will show a small growth in Revenue. The Revenue will grow by 6.67% on average per year.
EPS Next Y33.33%
EPS Next 2Y27.13%
EPS Next 3Y20.05%
EPS Next 5Y13.63%
Revenue Next Year8.54%
Revenue Next 2Y7.11%
Revenue Next 3Y6.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.86, the valuation of O can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of O is on the same level as its industry peers.
O is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 36.73, O can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, O is valued a bit cheaper than 67.72% of the companies in the same industry.
O's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.86 | ||
| Fwd PE | 36.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as O.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.36 |
4.3 Compensation for Growth
The 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.
O's earnings are expected to grow with 20.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y27.13%
EPS Next 3Y20.05%
5. Dividend
5.1 Amount
O has a Yearly Dividend Yield of 5.56%, which is a nice return.
Compared to an average industry Dividend Yield of 6.86, O has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, O pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
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
5.3 Sustainability
O pays out 298.20% 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.
DP298.2%
EPS Next 2Y27.13%
EPS Next 3Y20.05%
58.17
-0.12 (-0.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners81.1%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change-0.49%
Market Cap53.51B
Revenue(TTM)5.60B
Net Income(TTM)962.12M
Analysts68.67
Price Target63.86 (9.78%)
Short Float %4.97%
Short Ratio7.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend3.28
Dividend Growth(5Y)4.2%
DP298.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.3%
PT rev (3m)0.78%
EPS NQ rev (1m)2.94%
EPS NQ rev (3m)-12.74%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.86 | ||
| Fwd PE | 36.73 | ||
| P/S | 9.55 | ||
| P/FCF | N/A | ||
| P/OCF | 14.22 | ||
| P/B | 1.37 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 16.36 |
EPS(TTM)1.08
EY1.86%
EPS(NY)1.58
Fwd EY2.72%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY7.03%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)1.62
PEG (5Y)N/A
Graham Number32.12
Profitability
| Industry Rank | Sector 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)1.5%
ROA(5y)1.45%
ROE(3y)2.62%
ROE(5y)2.58%
ROIC(3y)2.51%
ROIC(5y)2.49%
ROICexc(3y)2.52%
ROICexc(5y)2.53%
ROICexgc(3y)3.04%
ROICexgc(5y)3.01%
ROCE(3y)3.17%
ROCE(5y)3.15%
ROICexgc growth 3Y12.51%
ROICexgc growth 5Y-1.36%
ROICexc growth 3Y14.65%
ROICexc growth 5Y-3.26%
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%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector 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 | 0.99 |
F-Score6
WACC7.08%
ROIC/WACC0.4
Cap/Depr(3y)369.18%
Cap/Depr(5y)430.26%
Cap/Sales(3y)177.32%
Cap/Sales(5y)195.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.86%
EPS 3Y1.4%
EPS 5Y-6.62%
EPS Q2Q%16.67%
EPS Next Y33.33%
EPS Next 2Y27.13%
EPS Next 3Y20.05%
EPS Next 5Y13.63%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%
Revenue Next Year8.54%
Revenue Next 2Y7.11%
Revenue Next 3Y6.84%
Revenue Next 5Y6.67%
EBIT growth 1Y11.31%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year116.05%
EBIT Next 3Y35.53%
EBIT Next 5Y21.07%
FCF growth 1Y86.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.04%
OCF growth 3Y39.29%
OCF growth 5Y27.3%
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 33.33% in the next year.