VORNADO REALTY TRUST (VNO)
US9290421091 - REIT
We assign a fundamental rating of 2 out of 10 to VNO. VNO was compared to 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of VNO have multiple concerns. VNO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VNO had positive earnings in the past year.
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.
Each year in the past 5 years VNO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.34%, VNO is doing worse than 66.14% of the companies in the same industry.
The Return On Equity of VNO (-1.02%) is worse than 63.78% of its industry peers.
With a Return On Invested Capital value of 1.28%, VNO is not doing good in the industry: 85.04% 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 3.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.34% | ||
| ROE | -1.02% | ||
| ROIC | 1.28% |
ROA(3y)-0.54%
ROA(5y)2.63%
ROE(3y)-1.53%
ROE(5y)7.22%
ROIC(3y)1.41%
ROIC(5y)1.38%
1.3 Margins
VNO's Profit Margin has declined in the last couple of years.
VNO has a Operating Margin of 13.65%. This is in the lower half of the industry: VNO underperforms 68.50% of its industry peers.
VNO's Operating Margin has declined in the last couple of years.
The Gross Margin of VNO (48.54%) is worse than 81.10% of its industry peers.
VNO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.65% | ||
| PM (TTM) | N/A | ||
| GM | 48.54% |
OM growth 3Y18.3%
OM growth 5Y-10.42%
PM growth 3YN/A
PM growth 5Y-33.03%
GM growth 3Y1.14%
GM growth 5Y-2.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNO is destroying value.
The number of shares outstanding for VNO has been reduced compared to 1 year ago.
VNO has less 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 0.29. 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 0.29, VNO is doing worse than 68.50% of the companies in the same industry.
VNO has a debt to FCF ratio of 1892.76. This is a negative value and a sign of low solvency as VNO would need 1892.76 years to pay back of all of its debts.
VNO's Debt to FCF ratio of 1892.76 is in line compared to the rest of the industry. VNO outperforms 41.73% of its industry peers.
A Debt/Equity ratio of 1.56 is on the high side and indicates that VNO has dependencies on debt financing.
VNO's Debt to Equity ratio of 1.56 is on the low side compared to the rest of the industry. VNO is outperformed by 64.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 1892.76 | ||
| Altman-Z | 0.29 |
ROIC/WACC0.2
WACC6.29%
2.3 Liquidity
VNO has a Current Ratio of 1.40. 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 (1.40) is comparable to the rest of the industry.
A Quick Ratio of 1.40 indicates that VNO should not have too much problems paying its short term obligations.
VNO's Quick ratio of 1.40 is fine compared to the rest of the industry. VNO outperforms 60.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
VNO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -78.13%.
Measured over the past years, VNO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.07% on average per year.
Looking at the last year, VNO shows a very negative growth in Revenue. The Revenue has decreased by -44.09% in the last year.
VNO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.49% yearly.
EPS 1Y (TTM)-78.13%
EPS 3YN/A
EPS 5Y-28.07%
EPS Q2Q%-242.86%
Revenue 1Y (TTM)-44.09%
Revenue growth 3Y5.83%
Revenue growth 5Y-3.49%
Sales Q2Q%-1.72%
3.2 Future
Based on estimates for the next years, VNO will show a decrease in Earnings Per Share. The EPS will decrease by -2.23% on average per year.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-138.85%
EPS Next 2Y-72.65%
EPS Next 3Y-33.22%
EPS Next 5Y-2.23%
Revenue Next Year-2.6%
Revenue Next 2Y0%
Revenue Next 3Y1.62%
Revenue Next 5Y2%
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 606.00.
65.35% of the companies in the same industry are cheaper than VNO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.29, VNO is valued quite expensively.
VNO is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 606 | ||
| Fwd PE | N/A |
4.2 Price Multiples
VNO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. VNO is more expensive than 85.83% of the companies in the same industry.
VNO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1856.1 | ||
| EV/EBITDA | 21.93 |
4.3 Compensation for Growth
VNO's earnings are expected to decrease with -33.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-72.65%
EPS Next 3Y-33.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, VNO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.28, VNO's dividend is way lower than its industry peers. On top of this 94.49% of the companies listed in the same industry pay a better dividend than VNO!
Compared to an average S&P500 Dividend Yield of 2.19, VNO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of VNO decreases each year by -18.64%.
VNO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-18.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VNO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
VNO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-221.04%
EPS Next 2Y-72.65%
EPS Next 3Y-33.22%
VORNADO REALTY TRUST
NYSE:VNO (11/22/2024, 8:11:57 PM)
After market: 42.42 0 (0%)42.42
+1 (+2.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 606 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.34% | ||
| ROE | -1.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.65% | ||
| PM (TTM) | N/A | ||
| GM | 48.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-78.13%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-138.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-44.09%
Revenue growth 3Y5.83%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y