VERIS RESIDENTIAL INC (VRE)
US5544891048 - REIT
VRE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. Both the profitability and financial health of VRE have multiple concerns. VRE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VRE has reported negative net income.
VRE had a positive operating cash flow in the past year.
VRE had negative earnings in 4 of the past 5 years.
In the past 5 years VRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VRE (-0.52%) is worse than 65.00% of its industry peers.
VRE's Return On Equity of -1.41% is on the low side compared to the rest of the industry. VRE is outperformed by 65.00% of its industry peers.
VRE has a Return On Invested Capital of 0.97%. This is amonst the worse of the industry: VRE underperforms 85.00% of its industry peers.
VRE had an Average Return On Invested Capital over the past 3 years of 0.40%. This is below the industry average of 2.61%.
The 3 year average ROIC (0.40%) for VRE is below the current ROIC(0.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -1.41% | ||
| ROIC | 0.97% |
ROA(3y)-2.57%
ROA(5y)-1.46%
ROE(3y)-8.11%
ROE(5y)-4.62%
ROIC(3y)0.4%
ROIC(5y)N/A
1.3 Margins
VRE has a worse Operating Margin (13.06%) than 70.00% of its industry peers.
VRE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 57.87%, VRE is in line with its industry, outperforming 45.00% of the companies in the same industry.
VRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | N/A | ||
| GM | 57.87% |
OM growth 3YN/A
OM growth 5Y-11.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRE is destroying value.
The number of shares outstanding for VRE has been increased compared to 1 year ago.
The number of shares outstanding for VRE has been increased compared to 5 years ago.
VRE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.02, we must say that VRE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VRE (-0.02) is worse than 95.00% of its industry peers.
VRE has a debt to FCF ratio of 51.08. This is a negative value and a sign of low solvency as VRE would need 51.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 51.08, VRE is in line with its industry, outperforming 45.00% of the companies in the same industry.
A Debt/Equity ratio of 1.51 is on the high side and indicates that VRE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.51, VRE is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 51.08 | ||
| Altman-Z | -0.02 |
ROIC/WACC0.16
WACC5.97%
2.3 Liquidity
A Current Ratio of 0.76 indicates that VRE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, VRE is in line with its industry, outperforming 50.00% of the companies in the same industry.
VRE has a Quick Ratio of 0.76. This is a bad value and indicates that VRE is not financially healthy enough and could expect problems in meeting its short term obligations.
VRE's Quick ratio of 0.76 is in line compared to the rest of the industry. VRE outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
VRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.27%, which is quite impressive.
VRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.37%.
VRE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.52% yearly.
EPS 1Y (TTM)79.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%83.33%
Revenue 1Y (TTM)-23.37%
Revenue growth 3Y-3.09%
Revenue growth 5Y-5.52%
Sales Q2Q%-4.63%
3.2 Future
VRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.08% yearly.
Based on estimates for the next years, VRE will show a small growth in Revenue. The Revenue will grow by 4.11% on average per year.
EPS Next Y82.76%
EPS Next 2Y32.89%
EPS Next 3Y22.08%
EPS Next 5YN/A
Revenue Next Year-4.53%
Revenue Next 2Y-0.12%
Revenue Next 3Y1.28%
Revenue Next 5Y4.11%
3.3 Evolution
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
VRE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VRE. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
85.00% of the companies in the same industry are cheaper than VRE, based on the Enterprise Value to EBITDA ratio.
65.00% of the companies in the same industry are more expensive than VRE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.97 | ||
| EV/EBITDA | 27.51 |
4.3 Compensation for Growth
VRE's earnings are expected to grow with 22.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.89%
EPS Next 3Y22.08%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.76, VRE pays less dividend than the industry average, which is at 3.82. 90.00% of the companies listed in the same industry pay a better dividend than VRE!
Compared to an average S&P500 Dividend Yield of 2.16, VRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of VRE decreases each year by -44.31%.
VRE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VRE decreased recently.
Dividend Growth(5Y)-44.31%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of VRE are negative and hence is the payout ratio. VRE will probably not be able to sustain this dividend level.
DP-139.73%
EPS Next 2Y32.89%
EPS Next 3Y22.08%
VERIS RESIDENTIAL INC
NYSE:VRE (12/4/2024, 8:04:00 PM)
After market: 17.67 0 (0%)17.67
-0.13 (-0.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -1.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.06% | ||
| PM (TTM) | N/A | ||
| GM | 57.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)79.27%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y82.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-23.37%
Revenue growth 3Y-3.09%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y