Taking everything into account, VNO scores 5 out of 10 in our fundamental rating. VNO was compared to 124 industry peers in the Diversified REITs industry. VNO has only an average score on both its financial health and profitability. VNO has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

VNO had positive earnings in the past year.
In the past year VNO had a positive cash flow from operations.
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's Return On Assets of 5.36% is amongst the best of the industry. VNO outperforms 95.97% of its industry peers.
The Return On Equity of VNO (13.90%) is better than 91.94% of its industry peers.
The Return On Invested Capital of VNO (1.44%) is worse than 76.61% 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 3.05%.

		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

VNO has a better Profit Margin (46.48%) than 96.77% of its industry peers.
VNO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 14.75%, VNO is not doing good in the industry: 65.32% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of VNO has declined.
Looking at the Gross Margin, with a value of 49.19%, VNO is doing worse than 75.81% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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

VNO has an Altman-Z score of 0.32. This is a bad value and indicates that VNO is not financially healthy and even has some risk of bankruptcy.
VNO has a worse Altman-Z score (0.32) than 62.10% of its industry peers.
The Debt to FCF ratio of VNO is 11.23, which is on the high side as it means it would take VNO, 11.23 years of fcf income to pay off all of its debts.
VNO's Debt to FCF ratio of 11.23 is amongst the best of the industry. VNO outperforms 89.52% of its industry peers.
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

WACC6.16%

2.3 Liquidity

A Current Ratio of 1.67 indicates that VNO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.67, VNO is doing good in the industry, outperforming 79.03% of the companies in the same industry.
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.
VNO has a better Quick ratio (1.67) than 79.03% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.67
Quick Ratio	1.67

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

VNO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 68.63% yearly.
The Revenue is expected to grow by 2.98% on average over the next years.

EPS Next Y10606%

EPS Next 2Y-58.27%

EPS Next 3Y8.08%

EPS Next 5Y68.63%

Revenue Next Year-0.56%

Revenue Next 2Y0.64%

Revenue Next 3Y1.79%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.64, the valuation of VNO can be described as very cheap.
Based on the Price/Earnings ratio, VNO is valued cheaper than 95.16% of the companies in the same industry.
VNO is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for VNO. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	7.64
Fwd PE	N/A

4.2 Price Multiples

VNO's Enterprise Value to EBITDA is on the same level as the industry average.
91.13% 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	9.63
EV/EBITDA	16.47

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.

PEG (NY)0

PEG (5Y)N/A

EPS Next 2Y-58.27%

EPS Next 3Y8.08%

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5. Dividend

5.1 Amount

VNO has a Yearly Dividend Yield of 7.42%, which is a nice return.
Compared to an average industry Dividend Yield of 6.82, VNO pays a bit more dividend than its industry peers.
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 paid a dividend for at least 10 years, which is 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

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-58.27%

EPS Next 3Y8.08%

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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 7.64 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 10606% in the next year.