VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VNO - US9290421091 - REIT
31.84 USD
-0.3 (-0.93%)
31.84 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VNO. VNO was compared to 124 industry peers in the Diversified REITs industry. VNO has an average financial health and profitability rating. VNO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year VNO was profitable.
- VNO had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: VNO reported negative net income in multiple years.
- VNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VNO has a better Return On Assets (5.36%) than 95.97% of its industry peers.
- VNO's Return On Equity of 13.90% is amongst the best of the industry. VNO outperforms 91.94% of its industry peers.
- VNO's Return On Invested Capital of 1.44% is on the low side compared to the rest of the industry. VNO is outperformed by 76.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VNO is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 13.9% | ||
| ROIC | 1.44% |
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
- The Profit Margin of VNO (46.48%) is better than 96.77% of its industry peers.
- In the last couple of years the Profit Margin of VNO has declined.
- VNO's Operating Margin of 14.75% is on the low side compared to the rest of the industry. VNO is outperformed by 65.32% of its industry peers.
- VNO's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 49.19%, VNO is doing worse than 75.81% of the companies in the same industry.
- In the last couple of years the Gross Margin of VNO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.75% | ||
| PM (TTM) | 46.48% | ||
| GM | 49.19% |
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
- VNO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- VNO has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VNO has about the same amount of shares outstanding.
- VNO has a worse debt/assets ratio than last year.
2.2 Solvency
- VNO has an Altman-Z score of 0.31. This is a bad value and indicates that VNO is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.31, VNO is doing worse than 62.10% of the companies in the same industry.
- The Debt to FCF ratio of VNO is 11.23, which is on the high side as it means it would take VNO, 11.23 years of fcf income to pay off all of its debts.
- VNO's Debt to FCF ratio of 11.23 is amongst the best of the industry. VNO outperforms 89.52% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that VNO has dependencies on debt financing.
- The Debt to Equity ratio of VNO (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.23
WACC6.17%
2.3 Liquidity
- VNO has a Current Ratio of 1.67. This is a normal value and indicates that VNO is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of VNO (1.67) is better than 79.03% of its industry peers.
- A Quick Ratio of 1.67 indicates that VNO should not have too much problems paying its short term obligations.
- VNO has a better Quick ratio (1.67) than 79.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
- VNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 5900.00%, which is quite impressive.
- Measured over the past years, VNO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -57.97% on average per year.
- VNO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.41%.
- The Revenue has been decreasing by -1.47% on average over the past years.
EPS 1Y (TTM)5900%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%160%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%2.36%
3.2 Future
- VNO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 68.63% yearly.
- Based on estimates for the next years, VNO will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y10606%
EPS Next 2Y-58.27%
EPS Next 3Y8.08%
EPS Next 5Y68.63%
Revenue Next Year-0.56%
Revenue Next 2Y0.64%
Revenue Next 3Y1.79%
Revenue Next 5Y2.98%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.58, the valuation of VNO can be described as very cheap.
- VNO's Price/Earnings ratio is rather cheap when compared to the industry. VNO is cheaper than 95.16% of the companies in the same industry.
- VNO is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- VNO is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- VNO's Enterprise Value to EBITDA ratio is in line with the industry average.
- VNO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VNO is cheaper than 91.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.56 | ||
| EV/EBITDA | 16.4 |
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.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y-58.27%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
- VNO has a Yearly Dividend Yield of 7.42%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.82, VNO pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, VNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.42% |
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.
- The dividend of VNO decreased recently.
Dividend Growth(5Y)-18.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 24.09% of the earnings are spent on dividend by VNO. This is a low number and sustainable payout ratio.
DP24.09%
EPS Next 2Y-58.27%
EPS Next 3Y8.08%
VORNADO REALTY TRUST / VNO FAQ
What is the ChartMill fundamental rating of VORNADO REALTY TRUST (VNO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VNO.
What is the valuation status for VNO stock?
ChartMill assigns a valuation rating of 5 / 10 to VORNADO REALTY TRUST (VNO). This can be considered as Fairly Valued.
Can you provide the profitability details for VORNADO REALTY TRUST?
VORNADO REALTY TRUST (VNO) has a profitability rating of 4 / 10.
What are the PE and PB ratios of VORNADO REALTY TRUST (VNO) stock?
The Price/Earnings (PE) ratio for VORNADO REALTY TRUST (VNO) is 7.58 and the Price/Book (PB) ratio is 1.01.
What is the earnings growth outlook for VORNADO REALTY TRUST?
The Earnings per Share (EPS) of VORNADO REALTY TRUST (VNO) is expected to grow by 10606% in the next year.