VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
USA - NYSE:VNO - US9290421091 - REIT
41.2 USD
-0.99 (-2.35%)
41.39 USD
+0.19 (+0.46%)
Overall VNO gets a fundamental rating of 5 out of 10. We evaluated VNO against 130 industry peers in the Diversified REITs industry. VNO has only an average score on both its financial health and profitability. 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.
Each year in the past 5 years VNO had a positive operating cash flow.
1.2 Ratios
VNO has a better Return On Assets (5.21%) than 96.15% of its industry peers.
The Return On Equity of VNO (13.34%) is better than 93.85% of its industry peers.
VNO has a worse Return On Invested Capital (1.45%) than 78.46% of its industry peers.
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 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 13.34% | ||
| ROIC | 1.45% |
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 (45.05%) is better than 95.38% of its industry peers.
In the last couple of years the Profit Margin of VNO has declined.
VNO has a worse Operating Margin (14.83%) than 65.38% of its industry peers.
In the last couple of years the Operating Margin of VNO has declined.
VNO has a Gross Margin of 49.21%. This is in the lower half of the industry: VNO underperforms 79.23% of its industry peers.
VNO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.83% | ||
| PM (TTM) | 45.05% | ||
| GM | 49.21% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VNO is destroying value.
The number of shares outstanding for VNO has been increased compared to 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
Based on the Altman-Z score of 0.46, we must say that VNO is in the distress zone and has some risk of bankruptcy.
VNO has a Altman-Z score of 0.46. This is comparable to the rest of the industry: VNO outperforms 49.23% of its industry peers.
The Debt to FCF ratio of VNO is 7.73, which is on the high side as it means it would take VNO, 7.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VNO (7.73) is better than 94.62% of its industry peers.
VNO has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, VNO perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.23
WACC6.42%
2.3 Liquidity
A Current Ratio of 1.88 indicates that VNO should not have too much problems paying its short term obligations.
VNO's Current ratio of 1.88 is fine compared to the rest of the industry. VNO outperforms 76.92% of its industry peers.
VNO has a Quick Ratio of 1.88. 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 Quick ratio of 1.88. This is in the better half of the industry: VNO outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
VNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1583.33%, 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 1.38% in the last year.
The Revenue has been decreasing by -1.47% on average over the past years.
EPS 1Y (TTM)1583.33%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%1955.56%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%-1.96%
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 68.63% on average per year.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y2412.38%
EPS Next 2Y-64.47%
EPS Next 3Y131.29%
EPS Next 5Y68.63%
Revenue Next Year0.73%
Revenue Next 2Y1.83%
Revenue Next 3Y3.1%
Revenue Next 5Y4.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 10.20 indicates a reasonable valuation of VNO.
VNO's Price/Earnings ratio is rather cheap when compared to the industry. VNO is cheaper than 96.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of VNO to the average of the S&P500 Index (27.20), we can say VNO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8158.42, the valuation of VNO can be described as expensive.
Based on the Price/Forward Earnings ratio, VNO is valued a bit 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 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 8158.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNO is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
93.85% 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 | 8.62 | ||
| EV/EBITDA | 18.69 |
4.3 Compensation for Growth
The 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 131.29% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y-64.47%
EPS Next 3Y131.29%
5. Dividend
5.1 Amount
VNO has a Yearly Dividend Yield of 6.90%, which is a nice return.
VNO's Dividend Yield is a higher than the industry average which is at 6.66.
VNO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
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.
VNO has decreased its dividend recently.
Dividend Growth(5Y)-18.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
25.00% of the earnings are spent on dividend by VNO. This is a low number and sustainable payout ratio.
DP25%
EPS Next 2Y-64.47%
EPS Next 3Y131.29%
41.2
-0.99 (-2.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.64%
Inst Owner Change3.04%
Ins Owners6.5%
Ins Owner Change0%
Market Cap7.91B
Analysts51.43
Price Target39.87 (-3.23%)
Short Float %4.86%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
Yearly Dividend1.07
Dividend Growth(5Y)-18.14%
DP25%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2129.51%
Min EPS beat(2)132.23%
Max EPS beat(2)4126.8%
EPS beat(4)4
Avg EPS beat(4)1094.95%
Min EPS beat(4)0.99%
Max EPS beat(4)4126.8%
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)1
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)1.08%
Revenue beat(4)2
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)1.3%
Revenue beat(8)3
Avg Revenue beat(8)-1.46%
Revenue beat(12)6
Avg Revenue beat(12)23.6%
Revenue beat(16)9
Avg Revenue beat(16)24.62%
PT rev (1m)-0.42%
PT rev (3m)-0.64%
EPS NQ rev (1m)-136.36%
EPS NQ rev (3m)-136.36%
EPS NY rev (1m)156.77%
EPS NY rev (3m)2742.86%
Revenue NQ rev (1m)-5.17%
Revenue NQ rev (3m)-6.24%
Revenue NY rev (1m)-2.59%
Revenue NY rev (3m)-2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 8158.42 | ||
| P/S | 4.39 | ||
| P/FCF | 8.62 | ||
| P/OCF | 5.69 | ||
| P/B | 1.3 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 18.69 |
EPS(TTM)4.04
EY9.81%
EPS(NY)0.01
Fwd EY0.01%
FCF(TTM)4.78
FCFY11.61%
OCF(TTM)7.24
OCFY17.57%
SpS9.39
BVpS31.72
TBVpS31.13
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 13.34% | ||
| ROCE | 1.84% | ||
| ROIC | 1.45% | ||
| ROICexc | 1.58% | ||
| ROICexgc | 1.63% | ||
| OM | 14.83% | ||
| PM (TTM) | 45.05% | ||
| GM | 49.21% | ||
| FCFM | 50.9% |
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-Score8
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 7.73 | ||
| Debt/EBITDA | 9.48 | ||
| Cap/Depr | 98.16% | ||
| Cap/Sales | 26.18% | ||
| Interest Coverage | 0.79 | ||
| Cash Conversion | 185.73% | ||
| Profit Quality | 112.98% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 0.46 |
F-Score8
WACC6.42%
ROIC/WACC0.23
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)1583.33%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%1955.56%
EPS Next Y2412.38%
EPS Next 2Y-64.47%
EPS Next 3Y131.29%
EPS Next 5Y68.63%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%-1.96%
Revenue Next Year0.73%
Revenue Next 2Y1.83%
Revenue Next 3Y3.1%
Revenue Next 5Y4.66%
EBIT growth 1Y2.55%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year206.97%
EBIT Next 3Y46.28%
EBIT Next 5Y26.08%
FCF growth 1Y1108.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.13%
OCF growth 3Y-10.96%
OCF growth 5Y-4.09%