VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VNO - US9290421091 - REIT
32.14 USD
-0.36 (-1.11%)
32.14 USD
0 (0%)
Overall VNO gets a fundamental rating of 5 out of 10. We evaluated VNO against 125 industry peers in the Diversified REITs industry. VNO has only an average score on both its financial health and profitability. VNO is not valued too expensively and it also shows 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.
- VNO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of VNO (5.36%) is better than 96.00% of its industry peers.
- The Return On Equity of VNO (13.90%) is better than 91.20% of its industry peers.
- With a Return On Invested Capital value of 1.44%, VNO is not doing good in the industry: 76.80% of the companies in the same industry are doing better.
- VNO had an Average Return On Invested Capital over the past 3 years of 1.48%. This is in line with the industry average of 3.07%.
| 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
- With an excellent Profit Margin value of 46.48%, VNO belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
- 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 65.60% 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 76.00% 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.
- Compared to 1 year ago, VNO has more shares outstanding
- 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
- Based on the Altman-Z score of 0.32, we must say that VNO is in the distress zone and has some risk of bankruptcy.
- VNO's Altman-Z score of 0.32 is on the low side compared to the rest of the industry. VNO is outperformed by 61.60% of its industry peers.
- VNO has a debt to FCF ratio of 11.23. This is a negative value and a sign of low solvency as VNO would need 11.23 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.23, VNO belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that VNO has dependencies on debt financing.
- VNO has a Debt to Equity ratio (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.23
WACC6.19%
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.
- VNO has a Current ratio of 1.67. This is in the better half of the industry: VNO outperforms 79.20% of its industry peers.
- VNO has a Quick 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 Quick ratio of VNO (1.67) is better than 79.20% 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.
- Looking at the last year, VNO shows a small growth in Revenue. The Revenue has grown by 2.41% in the last year.
- VNO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.47% yearly.
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
- The Earnings Per Share is expected to grow by 68.63% on average over the next years. This is a very strong growth
- VNO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y10530.25%
EPS Next 2Y-45.82%
EPS Next 3Y-8.84%
EPS Next 5Y68.63%
Revenue Next Year-0.28%
Revenue Next 2Y0.45%
Revenue Next 3Y1.7%
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
- Based on the Price/Earnings ratio of 7.65, the valuation of VNO can be described as very cheap.
- 94.40% of the companies in the same industry are more expensive than VNO, based on the Price/Earnings ratio.
- VNO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Forward Price/Earnings Ratio is negative for VNO. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- VNO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VNO is more expensive than 60.80% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VNO indicates a rather cheap valuation: VNO is cheaper than 91.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.65 | ||
| EV/EBITDA | 16.57 |
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.
- VNO's earnings are expected to decrease with -8.84% in the coming years. This may justify a cheaper valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y-45.82%
EPS Next 3Y-8.84%
5. Dividend
5.1 Amount
- VNO has a Yearly Dividend Yield of 7.42%, which is a nice return.
- VNO's Dividend Yield is a higher than the industry average which is at 6.59.
- VNO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.42% |
5.2 History
- The dividend of VNO decreases each year by -18.14%.
- VNO has been paying a dividend for at least 10 years, so it has 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-45.82%
EPS Next 3Y-8.84%
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 7.65 and the Price/Book (PB) ratio is 1.02.
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 10530.25% in the next year.