VECTOR GROUP LTD (VGR) Stock Fundamental Analysis
USA - NYSE:VGR - US92240M1080 - Common Stock
14.99 USD
+0.03 (+0.2%)
14.99 USD
0 (0%)
VGR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. VGR scores excellent on profitability, but 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.
In the past year VGR had a positive cash flow from operations.
In the past 5 years VGR has always been profitable.
VGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 17.97%, VGR belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Invested Capital of VGR (32.14%) is better 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 14.43%.
| 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's Operating Margin of 25.26% is in line compared to the rest of the industry. VGR outperforms 55.56% of its industry peers.
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.
Compared to 1 year ago, VGR has more shares outstanding
Compared to 5 years ago, VGR has more shares outstanding
VGR has a better debt/assets ratio than last year.
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.
The Altman-Z score of VGR (2.67) is worse than 66.67% of its industry peers.
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's Debt to FCF ratio of 6.84 is in line compared to the rest of the industry. VGR outperforms 55.56% of 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.
VGR has a better Current ratio (2.43) than 77.78% of its industry peers.
VGR has a Quick Ratio of 2.06. This indicates that VGR is financially healthy and has no problem in meeting its short term obligations.
VGR's Quick ratio of 2.06 is amongst the best of the industry. VGR outperforms 88.89% of its industry peers.
| 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.
Measured over the past years, VGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.59% on average per year.
Looking at the last year, VGR shows a very negative growth in Revenue. The Revenue has decreased by -19.98% in the last year.
The Revenue has been decreasing by -5.30% on average over the past years.
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.
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
With a Price/Earnings ratio of 11.90, the valuation of VGR can be described as very reasonable.
VGR's Price/Earnings ratio is a bit cheaper when compared to the industry. VGR is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, VGR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.56, the valuation of VGR can be described as reasonable.
VGR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VGR is cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. VGR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
VGR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VGR is cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VGR indicates a somewhat cheap valuation: VGR is cheaper than 66.67% of the companies listed 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
VGR has a Yearly Dividend Yield of 5.34%, which is a nice return.
VGR's Dividend Yield is a higher than the industry average which is at 3.98.
VGR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
The dividend of VGR decreases each year by -11.81%.
VGR has paid a dividend for at least 10 years, which is 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
64.32% of the earnings are spent on dividend by VGR. This is not a sustainable payout ratio.
DP64.32%
EPS Next 2Y6.98%
EPS Next 3Y10.8%
14.99
+0.03 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners64.19%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner Change0%
Market Cap2.36B
Revenue(TTM)1.42B
Net Income(TTM)196.65M
Analysts83.33
Price Target16.32 (8.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
Yearly Dividend0.81
Dividend Growth(5Y)-11.81%
DP64.32%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.33%
Min EPS beat(2)-12.87%
Max EPS beat(2)12.21%
EPS beat(4)2
Avg EPS beat(4)1.14%
Min EPS beat(4)-12.87%
Max EPS beat(4)14.48%
EPS beat(8)3
Avg EPS beat(8)-2.62%
EPS beat(12)3
Avg EPS beat(12)-11.57%
EPS beat(16)7
Avg EPS beat(16)6.07%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)1.47%
Revenue beat(4)1
Avg Revenue beat(4)-10.18%
Min Revenue beat(4)-38.38%
Max Revenue beat(4)1.47%
Revenue beat(8)3
Avg Revenue beat(8)-3.06%
Revenue beat(12)6
Avg Revenue beat(12)3.33%
Revenue beat(16)9
Avg Revenue beat(16)2.99%
PT rev (1m)0%
PT rev (3m)3.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-15.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.56 | ||
| P/S | 1.66 | ||
| P/FCF | 11.74 | ||
| P/OCF | 11.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.37 |
EPS(TTM)1.26
EY8.41%
EPS(NY)1.42
Fwd EY9.47%
FCF(TTM)1.28
FCFY8.52%
OCF(TTM)1.32
OCFY8.78%
SpS9.03
BVpS-4.53
TBVpS-5.22
PEG (NY)2.24
PEG (5Y)0.68
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.97% | ||
| ROE | N/A | ||
| ROCE | 44.08% | ||
| ROIC | 32.14% | ||
| ROICexc | 92.65% | ||
| ROICexgc | 149.57% | ||
| OM | 25.26% | ||
| PM (TTM) | 13.84% | ||
| GM | 33.43% | ||
| FCFM | 14.14% |
ROA(3y)20.18%
ROA(5y)14.68%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.49%
ROIC(5y)27.54%
ROICexc(3y)63.91%
ROICexc(5y)52.39%
ROICexgc(3y)88.47%
ROICexgc(5y)77.55%
ROCE(3y)45.93%
ROCE(5y)37.78%
ROICexgc growth 3Y11.03%
ROICexgc growth 5Y-15.8%
ROICexc growth 3Y16.6%
ROICexc growth 5Y5.87%
OM growth 3Y16.89%
OM growth 5Y15.47%
PM growth 3Y40.56%
PM growth 5Y35.62%
GM growth 3Y0.56%
GM growth 5Y0.88%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.84 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 90.77% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.62% | ||
| Profit Quality | 102.18% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 2.67 |
F-Score6
WACC7.62%
ROIC/WACC4.22
Cap/Depr(3y)124.24%
Cap/Depr(5y)110.33%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.83%
Profit Quality(3y)112.11%
Profit Quality(5y)146.38%
High Growth Momentum
Growth
EPS 1Y (TTM)15.6%
EPS 3Y11.27%
EPS 5Y17.59%
EPS Q2Q%6.25%
EPS Next Y5.32%
EPS Next 2Y6.98%
EPS Next 3Y10.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.98%
Revenue growth 3Y-10.74%
Revenue growth 5Y-5.3%
Sales Q2Q%1.71%
Revenue Next Year-15.64%
Revenue Next 2Y-7.51%
Revenue Next 3Y-10.29%
Revenue Next 5YN/A
EBIT growth 1Y-13.04%
EBIT growth 3Y4.34%
EBIT growth 5Y9.35%
EBIT Next Year20.36%
EBIT Next 3Y10.31%
EBIT Next 5YN/A
FCF growth 1Y-13.3%
FCF growth 3Y-7.06%
FCF growth 5Y3.98%
OCF growth 1Y-15.52%
OCF growth 3Y-7.75%
OCF growth 5Y2.92%
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.
What is the valuation status of VECTOR GROUP LTD (VGR) stock?
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.
What are the PE and PB ratios of VECTOR GROUP LTD (VGR) stock?
The Price/Earnings (PE) ratio for VECTOR GROUP LTD (VGR) is 11.9 and the Price/Book (PB) ratio is -3.31.
How financially healthy is VECTOR GROUP LTD?
The financial health rating of VECTOR GROUP LTD (VGR) is 5 / 10.