REALTY INCOME CORP (O) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:O - US7561091049 - REIT
57.425 USD
-1.05 (-1.8%)
Overall O gets a fundamental rating of 4 out of 10. We evaluated O against 128 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years O has always 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 (1.35%) is comparable to the rest of the industry.
O's Return On Equity of 2.46% is in line compared to the rest of the industry. O outperforms 52.34% of its industry peers.
With a Return On Invested Capital value of 2.83%, O perfoms like the industry average, outperforming 52.34% 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 3.05%.
The 3 year average ROIC (2.51%) for O is below the current ROIC(2.83%), indicating increased profibility in the last year.
| 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
O has a better Profit Margin (17.18%) than 64.84% of its industry peers.
O's Profit Margin has declined in the last couple of years.
O has a Operating Margin of 44.42%. This is amongst the best in the industry. O outperforms 89.06% of its industry peers.
O's Operating Margin has declined in the last couple of years.
O has a Gross Margin of 92.56%. This is amongst the best in the industry. O outperforms 94.53% of its industry peers.
O's Gross Margin has been stable in the last couple of years.
| 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.
O has more shares outstanding than it did 5 years ago.
O has a worse debt/assets ratio than last year.
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 has a better Altman-Z score (0.99) than 76.56% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that O is somewhat dependend on debt financing.
O has a Debt to Equity ratio of 0.73. This is in the better half of the industry: O outperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.4
WACC7.06%
2.3 Liquidity
A Current Ratio of 0.81 indicates that O may have some problems paying its short term obligations.
O has a Current ratio of 0.81. This is comparable to the rest of the industry: O outperforms 42.97% 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.
The Quick ratio of O (0.81) 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.
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
The Earnings Per Share is expected to grow by 13.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.67% on average over the next years.
EPS Next Y34.58%
EPS Next 2Y27.27%
EPS Next 3Y19.87%
EPS Next 5Y13.63%
Revenue Next Year8.33%
Revenue Next 2Y7%
Revenue Next 3Y6.7%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 53.17, which means the current valuation is very expensive for O.
O's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.49, O is valued quite expensively.
The Price/Forward Earnings ratio is 36.17, which means the current valuation is very expensive for O.
Compared to the rest of the industry, the Price/Forward Earnings ratio of O indicates a somewhat cheap valuation: O is cheaper than 68.75% of the companies listed in the same industry.
O is valuated expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.17 | ||
| Fwd PE | 36.17 |
4.2 Price Multiples
61.72% 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 | 16.42 |
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.
A more expensive valuation may be justified as O's earnings are expected to grow with 19.87% in the coming years.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y27.27%
EPS Next 3Y19.87%
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 6.59, O has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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 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
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 2Y27.27%
EPS Next 3Y19.87%
NYSE:O (12/8/2025, 3:49:07 PM)
57.425
-1.05 (-1.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change0.56%
Ins Owners0.1%
Ins Owner Change-0.51%
Market Cap52.83B
Revenue(TTM)5.60B
Net Income(TTM)962.12M
Analysts69.33
Price Target64.06 (11.55%)
Short Float %4.41%
Short Ratio7.2
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-Date
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)0.27%
PT rev (3m)1.49%
EPS NQ rev (1m)-13.67%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.17 | ||
| Fwd PE | 36.17 | ||
| P/S | 9.43 | ||
| P/FCF | N/A | ||
| P/OCF | 14.04 | ||
| P/B | 1.35 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)1.08
EY1.88%
EPS(NY)1.59
Fwd EY2.76%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY7.12%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)1.54
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
WACC7.06%
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 Y34.58%
EPS Next 2Y27.27%
EPS Next 3Y19.87%
EPS Next 5Y13.63%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%
Revenue Next Year8.33%
Revenue Next 2Y7%
Revenue Next 3Y6.7%
Revenue Next 5Y6.67%
EBIT growth 1Y11.31%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year114.98%
EBIT Next 3Y34.88%
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.
What is the valuation status for O stock?
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 earnings growth outlook for REALTY INCOME CORP?
The Earnings per Share (EPS) of REALTY INCOME CORP (O) is expected to grow by 34.58% in the next year.
Is the dividend of REALTY INCOME CORP sustainable?
The dividend rating of REALTY INCOME CORP (O) is 5 / 10 and the dividend payout ratio is 298.2%.