VECTOR GROUP LTD (VGR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VGR - US92240M1080 - Common Stock
14.99 USD
+0.03 (+0.2%)
14.99 USD
0 (0%)
Taking everything into account, VGR scores 5 out of 10 in our fundamental rating. VGR was compared to 8 industry peers in the Tobacco industry. While VGR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VGR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- VGR had positive earnings in the past year.
- VGR had a positive operating cash flow in the past year.
- VGR had positive earnings in each of the past 5 years.
- In the past 5 years VGR always reported a positive cash flow from operatings.
1.2 Ratios
- VGR has a Return On Assets of 17.97%. This is amongst the best in the industry. VGR outperforms 88.89% of its industry peers.
- VGR has a better Return On Invested Capital (32.14%) than 77.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VGR is significantly above the industry average of 14.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.97% | ||
| ROE | N/A | ||
| ROIC | 32.14% |
ROA(3y)20.18%
ROA(5y)14.68%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.49%
ROIC(5y)27.54%
1.3 Margins
- VGR has a Profit Margin of 13.84%. This is in the better half of the industry: VGR outperforms 66.67% of its industry peers.
- In the last couple of years the Profit Margin of VGR has grown nicely.
- VGR has a Operating Margin (25.26%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of VGR has grown nicely.
- Looking at the Gross Margin, with a value of 33.43%, VGR is in line with its industry, outperforming 55.56% of the companies in the same industry.
- In the last couple of years the Gross Margin of VGR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.26% | ||
| PM (TTM) | 13.84% | ||
| GM | 33.43% |
OM growth 3Y16.89%
OM growth 5Y15.47%
PM growth 3Y40.56%
PM growth 5Y35.62%
GM growth 3Y0.56%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
- VGR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for VGR has been increased compared to 1 year ago.
- Compared to 1 year ago, VGR has an improved debt to assets ratio.
2.2 Solvency
- VGR has an Altman-Z score of 2.67. This is not the best score and indicates that VGR is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.67, VGR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- The Debt to FCF ratio of VGR is 6.84, which is on the high side as it means it would take VGR, 6.84 years of fcf income to pay off all of its debts.
- VGR has a Debt to FCF ratio (6.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.84 | ||
| Altman-Z | 2.67 |
ROIC/WACC4.22
WACC7.62%
2.3 Liquidity
- A Current Ratio of 2.43 indicates that VGR has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.43, VGR is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- A Quick Ratio of 2.06 indicates that VGR has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.06, VGR belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
- VGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
- The Earnings Per Share has been growing by 17.59% on average over the past years. This is quite good.
- VGR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.98%.
- VGR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.30% yearly.
EPS 1Y (TTM)15.6%
EPS 3Y11.27%
EPS 5Y17.59%
EPS Q2Q%6.25%
Revenue 1Y (TTM)-19.98%
Revenue growth 3Y-10.74%
Revenue growth 5Y-5.3%
Sales Q2Q%1.71%
3.2 Future
- Based on estimates for the next years, VGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.80% on average per year.
- Based on estimates for the next years, VGR will show a very negative growth in Revenue. The Revenue will decrease by -10.29% on average per year.
EPS Next Y5.32%
EPS Next 2Y6.98%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue Next Year-15.64%
Revenue Next 2Y-7.51%
Revenue Next 3Y-10.29%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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
- Based on the Price/Earnings ratio of 11.90, the valuation of VGR can be described as reasonable.
- Based on the Price/Earnings ratio, VGR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- VGR is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.56, the valuation of VGR can be described as reasonable.
- Based on the Price/Forward Earnings ratio, VGR is valued a bit cheaper than 77.78% of the companies in the same industry.
- VGR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VGR is valued a bit cheaper than 66.67% of the companies in the same industry.
- VGR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VGR is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of VGR may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)0.68
EPS Next 2Y6.98%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.34%, VGR is a good candidate for dividend investing.
- VGR's Dividend Yield is a higher than the industry average which is at 3.34.
- VGR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
- The dividend of VGR decreases each year by -11.81%.
- VGR has been paying a dividend for at least 10 years, so it has a reliable track record.
- VGR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.81%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- VGR pays out 64.32% of its income as dividend. This is not a sustainable payout ratio.
DP64.32%
EPS Next 2Y6.98%
EPS Next 3Y10.8%
VECTOR GROUP LTD / VGR FAQ
What is the ChartMill fundamental rating of VECTOR GROUP LTD (VGR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VGR.
Can you provide the valuation status for VECTOR GROUP LTD?
ChartMill assigns a valuation rating of 6 / 10 to VECTOR GROUP LTD (VGR). This can be considered as Fairly Valued.
How profitable is VECTOR GROUP LTD (VGR) stock?
VECTOR GROUP LTD (VGR) has a profitability rating of 6 / 10.
Can you provide the financial health for VGR stock?
The financial health rating of VECTOR GROUP LTD (VGR) is 5 / 10.
Is the dividend of VECTOR GROUP LTD sustainable?
The dividend rating of VECTOR GROUP LTD (VGR) is 5 / 10 and the dividend payout ratio is 64.32%.