VECTOR GROUP LTD (VGR) Stock Fundamental Analysis
NYSE:VGR - New York Stock Exchange, Inc. - US92240M1080 - Common Stock - Currency: USD
VGR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. VGR has only an average score on both its financial health and profitability. VGR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VGR was profitable.
In the past year VGR had a positive cash flow from operations.
In the past 5 years VGR has always been profitable.
In the past 5 years VGR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.97%, VGR belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With a decent Return On Invested Capital value of 32.14%, VGR is doing good in the industry, outperforming 77.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VGR is significantly below the industry average of 66.20%.
| 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
The Profit Margin of VGR (13.84%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of VGR has grown nicely.
With a Operating Margin value of 25.26%, VGR perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Operating Margin of VGR has grown nicely.
With a Gross Margin value of 33.43%, VGR perfoms like the industry average, 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VGR is creating value.
Compared to 1 year ago, VGR has more shares outstanding
The number of shares outstanding for VGR has been increased compared to 5 years ago.
The debt/assets ratio for VGR has been reduced compared to a year ago.
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.
With a Debt to FCF ratio value of 6.84, VGR perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.84 | ||
| Altman-Z | 2.67 |
ROIC/WACC4.22
WACC7.62%
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.
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.
VGR has a Quick ratio of 2.06. This is amongst the best in 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
The Earnings Per Share has grown by an nice 15.60% over the past year.
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.
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.
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
A Price/Earnings ratio of 11.90 indicates a reasonable valuation of VGR.
Compared to the rest of the industry, the Price/Earnings ratio of VGR indicates a somewhat cheap valuation: VGR is cheaper than 66.67% of the companies listed in the same industry.
VGR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.39.
The Price/Forward Earnings ratio is 10.56, which indicates a very decent valuation of VGR.
Based on the Price/Forward Earnings ratio, VGR is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VGR to the average of the S&P500 Index (94.38), we can say VGR is valued rather cheaply.
| 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.
Based on the Price/Free Cash Flow ratio, VGR is valued a bit 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
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 4.25.
Compared to an average S&P500 Dividend Yield of 2.30, VGR pays a better dividend.
| 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
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%
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)
Earnings (Next)
Inst Owners64.19%
Inst Owner Change-38.12%
Ins Owners0.08%
Ins Owner Change-3820.36%
Market Cap2.36B
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
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%
ROICexcg growth 3Y11.03%
ROICexcg 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%