VERIS RESIDENTIAL INC (VRE) Stock Fundamental Analysis
NYSE:VRE - New York Stock Exchange, Inc. - US5544891048 - REIT - Currency: USD
Taking everything into account, VRE scores 2 out of 10 in our fundamental rating. VRE was compared to 20 industry peers in the Residential REITs industry. VRE has a bad profitability rating. Also its financial health evaluation is rather negative. VRE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year VRE has reported negative net income.
In the past year VRE had a positive cash flow from operations.
VRE had negative earnings in each of the past 5 years.
In the past 5 years VRE always reported a positive cash flow from operatings.
1.2 Ratios
VRE's Return On Assets of -0.78% is on the low side compared to the rest of the industry. VRE is outperformed by 80.00% of its industry peers.
The Return On Equity of VRE (-2.10%) is worse than 75.00% of its industry peers.
VRE has a Return On Invested Capital of 1.03%. 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 0.71%. This is below the industry average of 2.75%.
The last Return On Invested Capital (1.03%) for VRE is above the 3 year average (0.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.78% | ||
| ROE | -2.1% | ||
| ROIC | 1.03% |
ROA(3y)-1.9%
ROA(5y)-1.94%
ROE(3y)-5.53%
ROE(5y)-6.19%
ROIC(3y)0.71%
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 14.08%, VRE is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of VRE has grown nicely.
VRE has a Gross Margin (59.03%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VRE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.08% | ||
| PM (TTM) | N/A | ||
| GM | 59.03% |
OM growth 3Y64.68%
OM growth 5Y27.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.48%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRE is destroying value.
VRE has more shares outstanding than it did 1 year ago.
VRE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.09, we must say that VRE is in the distress zone and has some risk of bankruptcy.
VRE's Altman-Z score of -0.09 is on the low side compared to the rest of the industry. VRE is outperformed by 95.00% of its industry peers.
The Debt to FCF ratio of VRE is 60.12, which is on the high side as it means it would take VRE, 60.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 60.12, VRE perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 1.52 is on the high side and indicates that VRE has dependencies on debt financing.
VRE's Debt to Equity ratio of 1.52 is on the low side compared to the rest of the industry. VRE is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 60.12 | ||
| Altman-Z | -0.09 |
ROIC/WACC0.16
WACC6.65%
2.3 Liquidity
VRE has a Current Ratio of 0.68. This is a bad value and indicates that VRE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.68, VRE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that VRE may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.68, VRE is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 96.00% over the past year.
Looking at the last year, VRE shows a small growth in Revenue. The Revenue has grown by 4.14% in the last year.
The Revenue has been decreasing by -5.37% on average over the past years.
EPS 1Y (TTM)96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%0.62%
3.2 Future
VRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.45% yearly.
VRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y-15.73%
EPS Next 2Y11.47%
EPS Next 3Y16.45%
EPS Next 5YN/A
Revenue Next Year3.8%
Revenue Next 2Y2.63%
Revenue Next 3Y2.2%
Revenue Next 5Y5.65%
3.3 Evolution
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
The Price/Earnings Ratio is negative for VRE. In the last year negative earnings were reported.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRE indicates a rather expensive valuation: VRE more expensive than 90.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.8 | ||
| EV/EBITDA | 26.13 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRE's earnings are expected to grow with 16.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.47%
EPS Next 3Y16.45%
5. Dividend
5.1 Amount
VRE has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.99, VRE pays less dividend than the industry average, which is at 4.58. 95.00% of the companies listed in the same industry pay a better dividend than VRE!
Compared to the average S&P500 Dividend Yield of 2.51, VRE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of VRE decreases each year by -25.53%.
VRE has paid a dividend for at least 10 years, which is a reliable track record.
VRE has decreased its dividend recently.
Dividend Growth(5Y)-25.53%
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-104.03%
EPS Next 2Y11.47%
EPS Next 3Y16.45%
15.8
-0.28 (-1.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.41%
Inst Owner ChangeN/A
Ins Owners3.97%
Ins Owner Change21.56%
Market Cap1.47B
Analysts78
Price Target20.19 (27.78%)
Short Float %2.98%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.26
Dividend Growth(5Y)-25.53%
DP-104.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.36%
Min EPS beat(2)-28.71%
Max EPS beat(2)-10.01%
EPS beat(4)2
Avg EPS beat(4)38.54%
Min EPS beat(4)-28.71%
Max EPS beat(4)145.7%
EPS beat(8)3
Avg EPS beat(8)-44.34%
EPS beat(12)5
Avg EPS beat(12)-13.56%
EPS beat(16)7
Avg EPS beat(16)-10.65%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.14%
Max Revenue beat(2)2.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-6.66%
Max Revenue beat(4)2.01%
Revenue beat(8)5
Avg Revenue beat(8)-3.33%
Revenue beat(12)8
Avg Revenue beat(12)-0.58%
Revenue beat(16)11
Avg Revenue beat(16)-0.52%
PT rev (1m)0.85%
PT rev (3m)0%
EPS NQ rev (1m)-5.56%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.79%
EPS NY rev (3m)3.51%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 5.42 | ||
| P/FCF | 52.8 | ||
| P/OCF | 28.07 | ||
| P/B | 1.34 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 26.13 |
EPS(TTM)-0.04
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)0.3
FCFY1.89%
OCF(TTM)0.56
OCFY3.56%
SpS2.92
BVpS11.83
TBVpS11.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.78% | ||
| ROE | -2.1% | ||
| ROCE | 1.3% | ||
| ROIC | 1.03% | ||
| ROICexc | 1.03% | ||
| ROICexgc | 1.04% | ||
| OM | 14.08% | ||
| PM (TTM) | N/A | ||
| GM | 59.03% | ||
| FCFM | 10.26% |
ROA(3y)-1.9%
ROA(5y)-1.94%
ROE(3y)-5.53%
ROE(5y)-6.19%
ROIC(3y)0.71%
ROIC(5y)N/A
ROICexc(3y)0.71%
ROICexc(5y)N/A
ROICexgc(3y)0.71%
ROICexgc(5y)N/A
ROCE(3y)0.89%
ROCE(5y)N/A
ROICexcg growth 3Y77.03%
ROICexcg growth 5Y34.35%
ROICexc growth 3Y77.41%
ROICexc growth 5Y34.74%
OM growth 3Y64.68%
OM growth 5Y27.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.48%
GM growth 5Y0.25%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 60.12 | ||
| Debt/EBITDA | 13.83 | ||
| Cap/Depr | 29.62% | ||
| Cap/Sales | 9.04% | ||
| Interest Coverage | 0.49 | ||
| Cash Conversion | 43.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | -0.09 |
F-Score5
WACC6.65%
ROIC/WACC0.16
Cap/Depr(3y)93.67%
Cap/Depr(5y)183.38%
Cap/Sales(3y)29.65%
Cap/Sales(5y)64.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y-15.73%
EPS Next 2Y11.47%
EPS Next 3Y16.45%
EPS Next 5YN/A
Revenue 1Y (TTM)4.14%
Revenue growth 3Y-5.71%
Revenue growth 5Y-5.37%
Sales Q2Q%0.62%
Revenue Next Year3.8%
Revenue Next 2Y2.63%
Revenue Next 3Y2.2%
Revenue Next 5Y5.65%
EBIT growth 1Y59.27%
EBIT growth 3Y55.27%
EBIT growth 5Y20.87%
EBIT Next Year242.12%
EBIT Next 3Y51.3%
EBIT Next 5YN/A
FCF growth 1Y12.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.91%
OCF growth 3Y-2.29%
OCF growth 5Y-16.87%