VORNADO REALTY TRUST (VNO) Stock Fundamental Analysis
NYSE:VNO - New York Stock Exchange, Inc. - US9290421091 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to VNO. VNO was compared to 130 industry peers in the Diversified REITs industry. VNO may be in some trouble as it scores bad on both profitability and health. VNO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VNO was profitable.
In the past year VNO had a positive cash flow from operations.
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
VNO has a Return On Assets of 0.05%. This is comparable to the rest of the industry: VNO outperforms 40.77% of its industry peers.
VNO's Return On Equity of 0.16% is in line compared to the rest of the industry. VNO outperforms 42.31% of its industry peers.
The Return On Invested Capital of VNO (1.33%) is worse than 80.00% 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 3.19%.
| 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
Looking at the Profit Margin, with a value of 0.46%, VNO is in line with its industry, outperforming 40.77% of the companies in the same industry.
VNO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 14.05%, VNO is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
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 78.46% of its industry peers.
VNO's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VNO 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 0.20. 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 0.20, VNO is doing worse than 65.38% of the companies in the same industry.
The Debt to FCF ratio of VNO is 114.31, which is on the high side as it means it would take VNO, 114.31 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VNO (114.31) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that VNO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.60, VNO is doing worse than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 114.31 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.21
WACC6.47%
2.3 Liquidity
A Current Ratio of 1.33 indicates that VNO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, VNO is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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 63.08% 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.
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 decrease in Revenue. The Revenue has decreased by -1.30% 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)-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
Based on estimates for the next years, VNO will show a very strong growth in Earnings Per Share. The EPS will grow by 64.01% on average per year.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y-11.62%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue Next Year3.57%
Revenue Next 2Y4.26%
Revenue Next 3Y4.71%
Revenue Next 5Y4.02%
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
A Price/Earnings ratio of 827.00 indicates a quite expensive valuation of VNO.
66.92% of the companies in the same industry are cheaper than VNO, based on the Price/Earnings ratio.
VNO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.63.
Based on the Price/Forward Earnings ratio of 935.79, the valuation of VNO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.85. VNO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 827 | ||
| Fwd PE | 935.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNO is valued more expensive than 82.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VNO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.06 | ||
| EV/EBITDA | 19.61 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VNO's earnings are expected to grow with 143.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.49%
EPS Next 3Y143.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, VNO has a reasonable but not impressive dividend return.
In the last 3 months the price of VNO has falen by -21.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 2.14, VNO pays less dividend than the industry average, which is at 16.87. 86.92% of the companies listed in the same industry pay a better dividend than VNO!
VNO's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 2Y20.49%
EPS Next 3Y143.72%
33.08
-1.43 (-4.14%)
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 Change0.07%
Ins Owners6.31%
Ins Owner Change0%
Market Cap6.35B
Analysts51.43
Price Target41.23 (24.64%)
Short Float %6.33%
Short Ratio8.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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)1.68%
PT rev (3m)5.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)507.4%
EPS NY rev (1m)-41.67%
EPS NY rev (3m)122.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 827 | ||
| Fwd PE | 935.79 | ||
| P/S | 3.55 | ||
| P/FCF | 88.06 | ||
| P/OCF | 11.81 | ||
| P/B | 1.23 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 19.61 |
EPS(TTM)0.04
EY0.12%
EPS(NY)0.04
Fwd EY0.11%
FCF(TTM)0.38
FCFY1.14%
OCF(TTM)2.8
OCFY8.47%
SpS9.31
BVpS26.87
TBVpS26.26
PEG (NY)N/A
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 | 0.2 |
F-Score3
WACC6.47%
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 Y-11.62%
EPS Next 2Y20.49%
EPS Next 3Y143.72%
EPS Next 5Y64.01%
Revenue 1Y (TTM)-1.3%
Revenue growth 3Y4%
Revenue growth 5Y-1.47%
Sales Q2Q%3.6%
Revenue Next Year3.57%
Revenue Next 2Y4.26%
Revenue Next 3Y4.71%
Revenue Next 5Y4.02%
EBIT growth 1Y-15.32%
EBIT growth 3Y2.23%
EBIT growth 5Y-9.15%
EBIT Next Year190.01%
EBIT Next 3Y45.51%
EBIT Next 5Y25.68%
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%