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. VRE may be in some trouble as it scores bad on both profitability and health. VRE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VRE had negative earnings in the past year.
VRE had a positive operating cash flow in the past year.
VRE had negative earnings in 4 of the past 5 years.
VRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.52%, VRE is doing worse than 70.00% of the companies in the same industry.
The Return On Equity of VRE (-1.41%) is worse than 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.97%, VRE is doing worse than 85.00% of the companies in the same industry.
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
The Operating Margin of VRE (13.06%) is worse than 65.00% of its industry peers.
VRE's Operating Margin has declined in the last couple of years.
VRE has a Gross Margin of 57.87%. This is comparable to the rest of the industry: VRE outperforms 45.00% of its industry peers.
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 | 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
VRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VRE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRE has more shares outstanding
The debt/assets ratio for VRE is higher 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 has a Altman-Z score of -0.09. This is amonst the worse of the industry: VRE underperforms 95.00% of its industry peers.
The Debt to FCF ratio of VRE is 51.08, which is on the high side as it means it would take VRE, 51.08 years of fcf income to pay off all of its debts.
VRE has a Debt to FCF ratio (51.08) which is comparable to the rest of the industry.
VRE has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
VRE's Debt to Equity ratio of 1.51 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 | 1.51 | ||
| Debt/FCF | 51.08 | ||
| Altman-Z | -0.09 |
ROIC/WACC0.16
WACC6%
2.3 Liquidity
VRE has a Current 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.
The Current ratio of VRE (0.76) is comparable to the rest of the 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 has a Quick ratio (0.76) which is comparable to the rest of the industry.
| 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.
Looking at the last year, VRE shows a very negative growth in Revenue. The Revenue has decreased by -23.37% in the last year.
Measured over the past years, VRE shows a decrease in Revenue. The Revenue has been decreasing by -5.52% on average per year.
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
The Earnings Per Share is expected to grow by 22.08% on average over the next years. This is a very strong growth
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
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.
Also next year VRE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRE is valued more expensive than 85.00% of the companies in the same industry.
VRE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRE is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.71 | ||
| EV/EBITDA | 25.86 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRE's earnings are expected to grow with 22.08% in the coming years.
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 1.95%.
Compared to an average industry Dividend Yield of 4.18, VRE's dividend is way lower than its industry peers. On top of this 90.00% of the companies listed in the same industry pay a better dividend than VRE!
VRE's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of VRE decreases each year by -44.31%.
VRE has been paying a dividend for at least 10 years, so it has a reliable track record.
VRE has decreased its dividend 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 (1/10/2025, 9:56:04 AM)
15.455
-0.21 (-1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner ChangeN/A
Ins Owners3.97%
Ins Owner Change0%
Market Cap1.44B
Analysts78
Price Target20.19 (30.64%)
Short Float %3.13%
Short Ratio5.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Dividend Growth(5Y)-44.31%
DP-139.73%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)67.84%
Min EPS beat(2)-10.01%
Max EPS beat(2)145.7%
EPS beat(4)3
Avg EPS beat(4)57.81%
Min EPS beat(4)-10.01%
Max EPS beat(4)145.7%
EPS beat(8)4
Avg EPS beat(8)-5.45%
EPS beat(12)5
Avg EPS beat(12)-19.33%
EPS beat(16)8
Avg EPS beat(16)37.18%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)2.01%
Revenue beat(4)2
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-6.66%
Max Revenue beat(4)2.01%
Revenue beat(8)4
Avg Revenue beat(8)-3.64%
Revenue beat(12)8
Avg Revenue beat(12)-0.12%
Revenue beat(16)10
Avg Revenue beat(16)-1.19%
PT rev (1m)0.47%
PT rev (3m)13.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10%
EPS NY rev (1m)0%
EPS NY rev (3m)-5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 5.2 | ||
| P/FCF | 43.71 | ||
| P/OCF | 27.23 | ||
| P/B | 1.29 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 25.86 |
EPS(TTM)-0.17
EYN/A
EPS(NY)-0.29
Fwd EYN/A
FCF(TTM)0.35
FCFY2.29%
OCF(TTM)0.57
OCFY3.67%
SpS2.97
BVpS11.99
TBVpS11.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -1.41% | ||
| ROCE | 1.22% | ||
| ROIC | 0.97% | ||
| ROICexc | 0.97% | ||
| ROICexgc | 0.97% | ||
| OM | 13.06% | ||
| PM (TTM) | N/A | ||
| GM | 57.87% | ||
| FCFM | 11.91% |
ROA(3y)-2.57%
ROA(5y)-1.46%
ROE(3y)-8.11%
ROE(5y)-4.62%
ROIC(3y)0.4%
ROIC(5y)N/A
ROICexc(3y)0.4%
ROICexc(5y)N/A
ROICexgc(3y)0.4%
ROICexgc(5y)N/A
ROCE(3y)0.5%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-9.19%
ROICexc growth 3YN/A
ROICexc growth 5Y-8.86%
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%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 51.08 | ||
| Debt/EBITDA | 13.91 | ||
| Cap/Depr | 23.5% | ||
| Cap/Sales | 7.21% | ||
| Interest Coverage | 0.46 | ||
| Cash Conversion | 43.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | -0.09 |
F-Score5
WACC6%
ROIC/WACC0.16
Cap/Depr(3y)168.57%
Cap/Depr(5y)368.85%
Cap/Sales(3y)54.97%
Cap/Sales(5y)130.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)79.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%83.33%
EPS Next Y82.76%
EPS Next 2Y32.89%
EPS Next 3Y22.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-23.37%
Revenue growth 3Y-3.09%
Revenue growth 5Y-5.52%
Sales Q2Q%-4.63%
Revenue Next Year-4.53%
Revenue Next 2Y-0.12%
Revenue Next 3Y1.28%
Revenue Next 5Y4.11%
EBIT growth 1Y94.08%
EBIT growth 3YN/A
EBIT growth 5Y-16.36%
EBIT Next Year549.86%
EBIT Next 3Y90.78%
EBIT Next 5YN/A
FCF growth 1Y115.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.31%
OCF growth 3Y-18.91%
OCF growth 5Y-22.89%