VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
VNO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. VNO has a bad profitability rating. Also its financial health evaluation is rather negative. VNO is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years VNO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VNO (0.05%) is comparable to the rest of the industry.
VNO has a Return On Equity (0.16%) which is in line with its industry peers.
VNO has a Return On Invested Capital of 1.33%. This is amonst the worse of the industry: VNO underperforms 82.95% 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 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.16% | ||
| ROIC | 1.33% |
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 0.46%. This is comparable to the rest of the industry: VNO outperforms 41.09% of its industry peers.
VNO's Profit Margin has declined in the last couple of years.
The Operating Margin of VNO (14.05%) is worse than 66.67% of its industry peers.
In the last couple of years the Operating Margin of VNO has declined.
VNO has a Gross Margin of 48.10%. This is in the lower half of the industry: VNO underperforms 79.07% of its industry peers.
In the last couple of years the Gross Margin of VNO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.05% | ||
| PM (TTM) | 0.46% | ||
| GM | 48.1% |
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.
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.
VNO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that VNO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VNO (0.25) is worse than 66.67% of its industry peers.
VNO has a debt to FCF ratio of 114.31. This is a negative value and a sign of low solvency as VNO would need 114.31 years to pay back of all of its debts.
The Debt to FCF ratio of VNO (114.31) is comparable to the rest of the industry.
VNO has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
VNO has a worse Debt to Equity ratio (1.60) than 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 114.31 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.21
WACC6.4%
2.3 Liquidity
A Current Ratio of 1.33 indicates that VNO should not have too much problems paying its short term obligations.
The Current ratio of VNO (1.33) is better than 60.47% of its industry peers.
VNO has a Quick Ratio of 1.33. 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 better Quick ratio (1.33) than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for VNO have decreased strongly by -84.62% in the last year.
The earnings per share for VNO have been decreasing by -57.97% on average. This is quite bad
Looking at the last year, VNO shows a decrease in Revenue. The Revenue has decreased by -1.30% in the last year.
The Revenue has been decreasing by -1.47% on average over the past years.
EPS 1Y (TTM)-84.62%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%-75%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%3.6%
3.2 Future
The Earnings Per Share is expected to grow by 59.59% 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 3.86% yearly.
EPS Next Y51.5%
EPS Next 2Y62.83%
EPS Next 3Y100.66%
EPS Next 5Y59.59%
Revenue Next Year4.08%
Revenue Next 2Y4.85%
Revenue Next 3Y4.83%
Revenue Next 5Y3.86%
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.
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
Based on the Price/Earnings ratio of 1007.50, the valuation of VNO can be described as expensive.
70.54% of the companies in the same industry are cheaper than VNO, based on the Price/Earnings ratio.
VNO is valuated expensively when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 665.02 indicates a quite expensive valuation of VNO.
VNO's Price/Forward Earnings ratio is in line with the industry average.
VNO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1007.5 | ||
| Fwd PE | 665.02 |
4.2 Price Multiples
84.50% of the companies in the same industry are cheaper than VNO, based on the Enterprise Value to EBITDA ratio.
VNO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 106.47 | ||
| EV/EBITDA | 21.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VNO's earnings are expected to grow with 100.66% in the coming years.
PEG (NY)19.56
PEG (5Y)N/A
EPS Next 2Y62.83%
EPS Next 3Y100.66%
5. Dividend
5.1 Amount
VNO has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.80, VNO pays less dividend than the industry average, which is at 19.25. 85.27% of the companies listed in the same industry pay a better dividend than VNO!
VNO's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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.
Dividend Growth(5Y)-18.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
2455.77% of the earnings are spent on dividend by VNO. This is not a sustainable payout ratio.
DP2455.77%
EPS Next 2Y62.83%
EPS Next 3Y100.66%
40.3
+0.98 (+2.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.85%
Inst Owner Change-1.27%
Ins Owners6.31%
Ins Owner Change0%
Market Cap7.68B
Analysts51.43
Price Target40.29 (-0.02%)
Short Float %6.55%
Short Ratio8.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend1.07
Dividend Growth(5Y)-18.14%
DP2455.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.4%
Min EPS beat(2)0.99%
Max EPS beat(2)119.8%
EPS beat(4)4
Avg EPS beat(4)108.07%
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)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)1.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)7
Avg Revenue beat(12)32.6%
Revenue beat(16)8
Avg Revenue beat(16)24.61%
PT rev (1m)0.64%
PT rev (3m)9.03%
EPS NQ rev (1m)788.89%
EPS NQ rev (3m)788.89%
EPS NY rev (1m)139.13%
EPS NY rev (3m)144.44%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1007.5 | ||
| Fwd PE | 665.02 | ||
| P/S | 4.29 | ||
| P/FCF | 106.47 | ||
| P/OCF | 14.28 | ||
| P/B | 1.49 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 21.07 |
EPS(TTM)0.04
EY0.1%
EPS(NY)0.06
Fwd EY0.15%
FCF(TTM)0.38
FCFY0.94%
OCF(TTM)2.82
OCFY7%
SpS9.38
BVpS27.08
TBVpS26.46
PEG (NY)19.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.16% | ||
| ROCE | 1.69% | ||
| ROIC | 1.33% | ||
| ROICexc | 1.4% | ||
| ROICexgc | 1.45% | ||
| OM | 14.05% | ||
| PM (TTM) | 0.46% | ||
| GM | 48.1% | ||
| FCFM | 4.03% |
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-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 114.31 | ||
| Debt/EBITDA | 11.44 | ||
| Cap/Depr | 99.19% | ||
| Cap/Sales | 26.05% | ||
| Interest Coverage | 0.78 | ||
| Cash Conversion | 74.62% | ||
| Profit Quality | 871.42% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 0.25 |
F-Score3
WACC6.4%
ROIC/WACC0.21
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)-84.62%
EPS 3Y-58.75%
EPS 5Y-57.97%
EPS Q2Q%-75%
EPS Next Y51.5%
EPS Next 2Y62.83%
EPS Next 3Y100.66%
EPS Next 5Y59.59%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%3.6%
Revenue Next Year4.08%
Revenue Next 2Y4.85%
Revenue Next 3Y4.83%
Revenue Next 5Y3.86%
EBIT growth 1Y-15.32%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year178.95%
EBIT Next 3Y43.21%
EBIT Next 5Y25.31%
FCF growth 1Y148.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.04%
OCF growth 3Y-10.96%
OCF growth 5Y-4.09%