VECTOR GROUP LTD (VGR) Fundamental Analysis & Valuation

NYSE:VGR • US92240M1080

Current stock price

14.99 USD
+0.03 (+0.2%)
At close:
14.99 USD
0 (0%)
After Hours:

This VGR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. VGR Profitability Analysis

1.1 Basic Checks

  • VGR had positive earnings in the past year.
  • In the past year VGR had a positive cash flow from operations.
  • VGR had positive earnings in each of the past 5 years.
  • VGR had a positive operating cash flow in each of the past 5 years.
VGR Yearly Net Income VS EBIT VS OCF VS FCFVGR 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 100M 200M 300M

1.2 Ratios

  • VGR has a better Return On Assets (17.97%) than 88.89% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 32.14%, VGR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • VGR had an Average Return On Invested Capital over the past 3 years of 33.49%. This is significantly above the industry average of 14.46%.
Industry RankSector 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%
VGR Yearly ROA, ROE, ROICVGR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20 30

1.3 Margins

  • VGR has a better Profit Margin (13.84%) than 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.
  • VGR's Operating Margin has improved in the last couple of years.
  • 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 RankSector 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%
VGR Yearly Profit, Operating, Gross MarginsVGR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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5

2. VGR Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VGR 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.
VGR Yearly Shares OutstandingVGR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
VGR Yearly Total Debt VS Total AssetsVGR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 2.67 indicates that VGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.67, VGR is doing worse than 66.67% of the companies in the same industry.
  • 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 comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.84
Altman-Z 2.67
ROIC/WACC4.22
WACC7.62%
VGR Yearly LT Debt VS Equity VS FCFVGR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

2.3 Liquidity

  • VGR has a Current Ratio of 2.43. This indicates that VGR is financially healthy and has no problem in meeting its short term obligations.
  • VGR has a better Current ratio (2.43) than 77.78% of its industry peers.
  • A Quick Ratio of 2.06 indicates that VGR has no problem at all paying 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 RankSector Rank
Current Ratio 2.43
Quick Ratio 2.06
VGR Yearly Current Assets VS Current LiabilitesVGR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. VGR Growth Analysis

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.
  • Looking at the last year, VGR shows a very negative growth in Revenue. The Revenue has decreased by -19.98% in the last year.
  • Measured over the past years, VGR shows a decrease in Revenue. The Revenue has been decreasing by -5.30% on average per year.
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.
  • The Revenue is expected to decrease by -10.29% on average over the next years. This is quite bad
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.
VGR Yearly Revenue VS EstimatesVGR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
VGR Yearly EPS VS EstimatesVGR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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6

4. VGR Valuation Analysis

4.1 Price/Earnings Ratio

  • VGR is valuated reasonably with a Price/Earnings ratio of 11.90.
  • Based on the Price/Earnings ratio, VGR is valued a bit cheaper than 66.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, VGR is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.56 indicates a reasonable valuation of VGR.
  • 77.78% of the companies in the same industry are more expensive than VGR, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of VGR to the average of the S&P500 Index (23.84), we can say VGR is valued rather cheaply.
Industry RankSector Rank
PE 11.9
Fwd PE 10.56
VGR Price Earnings VS Forward Price EarningsVGR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
  • 66.67% of the companies in the same industry are more expensive than VGR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.74
EV/EBITDA 8.37
VGR Per share dataVGR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VGR does not grow enough to justify the current Price/Earnings ratio.
  • VGR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)0.68
EPS Next 2Y6.98%
EPS Next 3Y10.8%

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

5

5. VGR Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.34%, VGR is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.25, VGR pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, VGR pays a better dividend.
Industry RankSector 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
VGR Yearly Dividends per shareVGR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1

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%
VGR Yearly Income VS Free CF VS DividendVGR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
VGR Dividend Payout.VGR Dividend Payout, showing the Payout Ratio.VGR Dividend Payout.PayoutRetained Earnings

More info and screens

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VGR Fundamentals: All Metrics, Ratios and Statistics

VECTOR GROUP LTD

NYSE:VGR (10/4/2024, 8:04:00 PM)

After market: 14.99 0 (0%)

14.99

+0.03 (+0.2%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)07-31
Earnings (Next)11-06
Inst Owners64.19%
Inst Owner Change-100%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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%.