REALTY INCOME CORP (O) Stock Fundamental Analysis

NYSE:O • US7561091049

66.645 USD
+0.98 (+1.5%)
Last: Feb 17, 2026, 02:45 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

O gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 123 industry peers in the Diversified REITs industry. While O is still in line with the averages on profitability rating, there are concerns on its financial health. 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

  • In the past year O was profitable.
  • In the past year O had a positive cash flow from operations.
  • 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.
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

  • O has a Return On Assets (1.35%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 2.46%, O is in line with its industry, outperforming 54.47% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 2.83%, O is in line with its industry, outperforming 51.22% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for O is in line with the industry average of 3.06%.
  • The 3 year average ROIC (2.51%) for O is below the current ROIC(2.83%), indicating increased profibility in the last year.
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

  • With a decent Profit Margin value of 17.18%, O is doing good in the industry, outperforming 65.04% 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 89.43% of its industry peers.
  • In the last couple of years the Operating Margin of O has declined.
  • The Gross Margin of O (92.56%) is better than 94.31% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), O 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.
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

  • Based on the Altman-Z score of 1.11, we must say that O is in the distress zone and has some risk of bankruptcy.
  • O has a better Altman-Z score (1.11) than 78.86% 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 1.11
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 0 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 0.81 indicates that O may have some problems paying its short term obligations.
  • With a Current ratio value of 0.81, O perfoms like the industry average, outperforming 43.09% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 0.81, O is in line with its industry, outperforming 43.09% of the companies in the same 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

  • O shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.86%.
  • Measured over the past years, O shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.62% on average per year.
  • Looking at the last year, O shows a quite strong growth in Revenue. The Revenue has grown by 11.88% in the last year.
  • 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

  • Based on estimates for the next years, O will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.63% on average per year.
  • 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 Y33.97%
EPS Next 2Y29.2%
EPS Next 3Y20.64%
EPS Next 5Y13.63%
Revenue Next Year9.6%
Revenue Next 2Y7.74%
Revenue Next 3Y7.06%
Revenue Next 5Y6.67%

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 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

  • O is valuated quite expensively with a Price/Earnings ratio of 61.71.
  • The rest of the industry has a similar Price/Earnings ratio as O.
  • When comparing the Price/Earnings ratio of O to the average of the S&P500 Index (27.19), we can say O is valued expensively.
  • O is valuated quite expensively with a Price/Forward Earnings ratio of 40.74.
  • Based on the Price/Forward Earnings ratio, O is valued a bit cheaper than the industry average as 67.48% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of O to the average of the S&P500 Index (28.06), we can say O is valued slightly more expensively.
Industry RankSector Rank
PE 61.71
Fwd PE 40.74
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 71.54% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.75
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 20.64% in the coming years.
PEG (NY)1.82
PEG (5Y)N/A
EPS Next 2Y29.2%
EPS Next 3Y20.64%

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

5

5. Dividend

5.1 Amount

  • O has a Yearly Dividend Yield of 5.00%, which is a nice return.
  • Compared to an average industry Dividend Yield of 6.84, 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%

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.
  • O's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP298.2%
EPS Next 2Y29.2%
EPS Next 3Y20.64%
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

NYSE:O (2/17/2026, 2:45:06 PM)

66.645

+0.98 (+1.5%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-03
Earnings (Next)02-24
Inst Owners81.1%
Inst Owner Change-0.67%
Ins Owners0.1%
Ins Owner Change-4.76%
Market Cap61.31B
Revenue(TTM)5.60B
Net Income(TTM)962.12M
Analysts70
Price Target64.88 (-2.65%)
Short Float %3.62%
Short Ratio5.04
Dividend
Industry RankSector Rank
Dividend Yield 5%
Yearly Dividend3.28
Dividend Growth(5Y)4.2%
DP298.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-30
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)1.6%
PT rev (3m)1.57%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-10.63%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.57%
Valuation
Industry RankSector Rank
PE 61.71
Fwd PE 40.74
P/S 10.94
P/FCF N/A
P/OCF 16.29
P/B 1.57
P/tB 2.17
EV/EBITDA 17.75
EPS(TTM)1.08
EY1.62%
EPS(NY)1.64
Fwd EY2.45%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY6.14%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)1.82
PEG (5Y)N/A
Graham Number32.12
Profitability
Industry RankSector 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 RankSector 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 1.11
F-Score6
WACC7.12%
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 Y33.97%
EPS Next 2Y29.2%
EPS Next 3Y20.64%
EPS Next 5Y13.63%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%
Revenue Next Year9.6%
Revenue Next 2Y7.74%
Revenue Next 3Y7.06%
Revenue Next 5Y6.67%
EBIT growth 1Y11.31%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year116.05%
EBIT Next 3Y35.61%
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 33.97% in the next year.