VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
Overall VNO gets a fundamental rating of 3 out of 10. We evaluated VNO against 130 industry peers in the Diversified REITs industry. VNO has a bad profitability rating. Also its financial health evaluation is rather negative. VNO 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 VNO was profitable.
VNO had a positive operating cash flow in the past year.
In multiple years VNO reported negative net income over the last 5 years.
In the past 5 years VNO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.67%, VNO perfoms like the industry average, outperforming 51.54% of the companies in the same industry.
VNO has a Return On Equity (1.96%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 1.50%, VNO is not doing good in the industry: 77.69% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for VNO is in line with the industry average of 3.16%.
The 3 year average ROIC (1.48%) for VNO is below the current ROIC(1.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 1.96% | ||
| ROIC | 1.5% |
ROA(3y)-0.72%
ROA(5y)-0.74%
ROE(3y)-2.02%
ROE(5y)-1.95%
ROIC(3y)1.48%
ROIC(5y)1.27%
1.3 Margins
VNO has a Profit Margin of 5.75%. This is comparable to the rest of the industry: VNO outperforms 54.62% of its industry peers.
VNO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.19%, VNO is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of VNO has declined.
VNO's Gross Margin of 48.90% is on the low side compared to the rest of the industry. VNO is outperformed by 79.23% of its industry peers.
In the last couple of years the Gross Margin of VNO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 5.75% | ||
| GM | 48.9% |
OM growth 3Y-1.7%
OM growth 5Y-7.8%
PM growth 3Y-58.25%
PM growth 5Y-68.97%
GM growth 3Y-1.17%
GM growth 5Y-1.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNO is destroying value.
VNO has more shares outstanding than it did 1 year ago.
VNO has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VNO is higher compared to a year ago.
2.2 Solvency
VNO has an Altman-Z score of 0.26. This is a bad value and indicates that VNO is not financially healthy and even has some risk of bankruptcy.
VNO's Altman-Z score of 0.26 is on the low side compared to the rest of the industry. VNO is outperformed by 64.62% of its industry peers.
The Debt to FCF ratio of VNO is 57.24, which is on the high side as it means it would take VNO, 57.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VNO (57.24) is better than 63.85% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that VNO has dependencies on debt financing.
The Debt to Equity ratio of VNO (1.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 57.24 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.19
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.20 indicates that VNO should not have too much problems paying its short term obligations.
The Current ratio of VNO (1.20) is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that VNO should not have too much problems paying its short term obligations.
The Quick ratio of VNO (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
VNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 160.00%, which is quite impressive.
VNO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -57.97% yearly.
Looking at the last year, VNO shows a small growth in Revenue. The Revenue has grown by 0.63% in the last year.
Measured over the past years, VNO shows a decrease in Revenue. The Revenue has been decreasing by -1.47% on average per year.
EPS 1Y (TTM)160%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%960%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%5.78%
3.2 Future
Based on estimates for the next years, VNO will show a very strong growth in Earnings Per Share. The EPS will grow by 64.01% on average per year.
The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y878.44%
EPS Next 2Y23.09%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue Next Year3.35%
Revenue Next 2Y4.16%
Revenue Next 3Y4.33%
Revenue Next 5Y4.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
VNO is valuated quite expensively with a Price/Earnings ratio of 73.54.
The rest of the industry has a similar Price/Earnings ratio as VNO.
VNO is valuated expensively when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 631.02 indicates a quite expensive valuation of VNO.
VNO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VNO is more expensive than 60.77% of the companies in the same industry.
VNO is valuated expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.54 | ||
| Fwd PE | 631.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNO indicates a rather expensive valuation: VNO more expensive than 82.31% of the companies listed in the same industry.
61.54% of the companies in the same industry are more expensive than VNO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.92 | ||
| EV/EBITDA | 19.38 |
4.3 Compensation for Growth
VNO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VNO's earnings are expected to grow with 143.72% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y23.09%
EPS Next 3Y143.72%
5. Dividend
5.1 Amount
VNO has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.99, VNO pays less dividend than the industry average, which is at 6.64. 84.62% of the companies listed in the same industry pay a better dividend than VNO!
VNO's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of VNO decreases each year by -18.14%.
VNO has paid a dividend for at least 10 years, which is a reliable track record.
VNO has decreased its dividend recently.
Dividend Growth(5Y)-18.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VNO pays out 195.11% of its income as dividend. This is not a sustainable payout ratio.
DP195.11%
EPS Next 2Y23.09%
EPS Next 3Y143.72%
38.24
-0.05 (-0.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change-0.77%
Ins Owners6.5%
Ins Owner Change0.43%
Market Cap7.34B
Analysts51.43
Price Target40.21 (5.15%)
Short Float %4.78%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.07
Dividend Growth(5Y)-18.14%
DP195.11%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)126.02%
Min EPS beat(2)119.8%
Max EPS beat(2)132.23%
EPS beat(4)4
Avg EPS beat(4)130.69%
Min EPS beat(4)0.99%
Max EPS beat(4)269.73%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.19%
Min Revenue beat(2)1.08%
Max Revenue beat(2)1.3%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)1.49%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)7
Avg Revenue beat(12)32.49%
Revenue beat(16)9
Avg Revenue beat(16)24.85%
PT rev (1m)0.42%
PT rev (3m)-2.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)252.94%
EPS NY rev (1m)1007.14%
EPS NY rev (3m)1007.14%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.54 | ||
| Fwd PE | 631.02 | ||
| P/S | 4.05 | ||
| P/FCF | 53.92 | ||
| P/OCF | 13.15 | ||
| P/B | 1.38 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 19.38 |
EPS(TTM)0.52
EY1.36%
EPS(NY)0.06
Fwd EY0.16%
FCF(TTM)0.71
FCFY1.85%
OCF(TTM)2.91
OCFY7.61%
SpS9.44
BVpS27.68
TBVpS27.08
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 1.96% | ||
| ROCE | 1.9% | ||
| ROIC | 1.5% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 1.62% | ||
| OM | 15.19% | ||
| PM (TTM) | 5.75% | ||
| GM | 48.9% | ||
| FCFM | 7.51% |
ROA(3y)-0.72%
ROA(5y)-0.74%
ROE(3y)-2.02%
ROE(5y)-1.95%
ROIC(3y)1.48%
ROIC(5y)1.27%
ROICexc(3y)1.57%
ROICexc(5y)1.37%
ROICexgc(3y)1.63%
ROICexgc(5y)1.42%
ROCE(3y)1.87%
ROCE(5y)1.61%
ROICexcg growth 3Y2.74%
ROICexcg growth 5Y-7.36%
ROICexc growth 3Y3.14%
ROICexc growth 5Y-7.55%
OM growth 3Y-1.7%
OM growth 5Y-7.8%
PM growth 3Y-58.25%
PM growth 5Y-68.97%
GM growth 3Y-1.17%
GM growth 5Y-1.66%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 57.24 | ||
| Debt/EBITDA | 10.36 | ||
| Cap/Depr | 88.56% | ||
| Cap/Sales | 23.29% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 74.24% | ||
| Profit Quality | 130.71% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 0.26 |
F-Score6
WACC7.77%
ROIC/WACC0.19
Cap/Depr(3y)148.23%
Cap/Depr(5y)165.12%
Cap/Sales(3y)40.05%
Cap/Sales(5y)44.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)160%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%960%
EPS Next Y878.44%
EPS Next 2Y23.09%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%5.78%
Revenue Next Year3.35%
Revenue Next 2Y4.16%
Revenue Next 3Y4.33%
Revenue Next 5Y4.54%
EBIT growth 1Y-5.22%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year198.85%
EBIT Next 3Y45.51%
EBIT Next 5Y25.68%
FCF growth 1Y201.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.44%
OCF growth 3Y-10.96%
OCF growth 5Y-4.09%