REALTY INCOME CORP (O) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:O • US7561091049

63.36 USD
+0.9 (+1.44%)
At close: Feb 5, 2026
63.16 USD
-0.2 (-0.32%)
Pre-Market: 2/6/2026, 6:40:06 AM
Fundamental Rating

4

Taking everything into account, O scores 4 out of 10 in our fundamental rating. O was compared to 124 industry peers in the Diversified REITs industry. While O is still in line with the averages on profitability rating, there are concerns on its financial health. O is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • O had positive earnings in the past year.
  • O had a positive operating cash flow in the past year.
  • Each year in the past 5 years O has been profitable.
  • O had a positive operating cash flow in each of the past 5 years.
O Yearly Net Income VS EBIT VS OCF VS FCFO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B -6B

1.2 Ratios

  • O has a Return On Assets (1.35%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 2.46%, O is in line with its industry, outperforming 53.23% of the companies in the same industry.
  • O has a Return On Invested Capital (2.83%) which is comparable to the rest of the industry.
  • O had an Average Return On Invested Capital over the past 3 years of 2.51%. This is in line with the industry average of 3.05%.
  • The 3 year average ROIC (2.51%) for O is below the current ROIC(2.83%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.35%
ROE 2.46%
ROIC 2.83%
ROA(3y)1.5%
ROA(5y)1.45%
ROE(3y)2.62%
ROE(5y)2.58%
ROIC(3y)2.51%
ROIC(5y)2.49%
O Yearly ROA, ROE, ROICO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4

1.3 Margins

  • O has a Profit Margin of 17.18%. This is in the better half of the industry: O outperforms 65.32% of its industry peers.
  • O's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 44.42%, O belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
  • O's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 92.56%, O belongs to the best of the industry, outperforming 94.35% of the companies in the same industry.
  • In the last couple of years the Gross Margin of O has remained more or less at the same level.
Industry RankSector Rank
OM 44.42%
PM (TTM) 17.18%
GM 92.56%
OM growth 3Y-1.7%
OM growth 5Y-2.42%
PM growth 3Y-2.35%
PM growth 5Y-11.32%
GM growth 3Y-0.27%
GM growth 5Y-0.26%
O Yearly Profit, Operating, Gross MarginsO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), O is destroying value.
  • The number of shares outstanding for O has been increased compared to 1 year ago.
  • O has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, O has a worse debt to assets ratio.
O Yearly Shares OutstandingO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
O Yearly Total Debt VS Total AssetsO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

  • Based on the Altman-Z score of 1.08, we must say that O is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.08, O is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
  • A Debt/Equity ratio of 0.73 indicates that O is somewhat dependend on debt financing.
  • The Debt to Equity ratio of O (0.73) is better than 79.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Altman-Z 1.08
ROIC/WACC0.39
WACC7.26%
O Yearly LT Debt VS Equity VS FCFO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 0.81 indicates that O may have some problems paying its short term obligations.
  • The Current ratio of O (0.81) is comparable to the rest of the industry.
  • O has a Quick Ratio of 0.81. This is a bad value and indicates that O is not financially healthy enough and could expect problems in meeting its short term obligations.
  • O has a Quick ratio of 0.81. This is comparable to the rest of the industry: O outperforms 45.16% of its industry peers.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.81
O Yearly Current Assets VS Current LiabilitesO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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5

3. Growth

3.1 Past

  • O shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.86%.
  • O shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.62% yearly.
  • O shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.88%.
  • The Revenue has been growing by 28.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.86%
EPS 3Y1.4%
EPS 5Y-6.62%
EPS Q2Q%16.67%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%

3.2 Future

  • O is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.63% yearly.
  • O is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.67% yearly.
EPS Next Y32.96%
EPS Next 2Y28.87%
EPS Next 3Y20.41%
EPS Next 5Y13.63%
Revenue Next Year9.6%
Revenue Next 2Y7.72%
Revenue Next 3Y7.03%
Revenue Next 5Y6.67%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
O Yearly Revenue VS EstimatesO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
O Yearly EPS VS EstimatesO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0.5 1 1.5 2

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2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 58.67, the valuation of O can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as O.
  • O's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.67.
  • Based on the Price/Forward Earnings ratio of 38.93, the valuation of O can be described as expensive.
  • Based on the Price/Forward Earnings ratio, O is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of O to the average of the S&P500 Index (27.20), we can say O is valued slightly more expensively.
Industry RankSector Rank
PE 58.67
Fwd PE 38.93
O Price Earnings VS Forward Price EarningsO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, O is valued a bit more expensive than the industry average as 66.13% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.32
O Per share dataO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • O has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as O's earnings are expected to grow with 20.41% in the coming years.
PEG (NY)1.78
PEG (5Y)N/A
EPS Next 2Y28.87%
EPS Next 3Y20.41%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • O has a Yearly Dividend Yield of 5.33%, which is a nice return.
  • Compared to an average industry Dividend Yield of 6.98, O has a dividend in line with its industry peers.
  • O's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 5.33%

5.2 History

  • The dividend of O has a limited annual growth rate of 4.20%.
  • O has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.2%
Div Incr Years0
Div Non Decr Years0
O Yearly Dividends per shareO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 298.20% of the earnings are spent on dividend by O. This is not a sustainable payout ratio.
  • O's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP298.2%
EPS Next 2Y28.87%
EPS Next 3Y20.41%
O Yearly Income VS Free CF VS DividendO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B -6B
O Dividend Payout.O Dividend Payout, showing the Payout Ratio.O Dividend Payout.PayoutRetained Earnings

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REALTY INCOME CORP

NYSE:O (2/5/2026, 8:04:00 PM)

Premarket: 63.16 -0.2 (-0.32%)

63.36

+0.9 (+1.44%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-03
Earnings (Next)02-24
Inst Owners81.1%
Inst Owner Change-1.82%
Ins Owners0.1%
Ins Owner Change-4.76%
Market Cap58.29B
Revenue(TTM)5.60B
Net Income(TTM)962.12M
Analysts68.67
Price Target64.06 (1.1%)
Short Float %3.49%
Short Ratio5.02
Dividend
Industry RankSector Rank
Dividend Yield 5.33%
Yearly Dividend3.28
Dividend Growth(5Y)4.2%
DP298.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-30
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.28%
Min EPS beat(2)-38.76%
Max EPS beat(2)-3.79%
EPS beat(4)0
Avg EPS beat(4)-26.76%
Min EPS beat(4)-41.01%
Max EPS beat(4)-3.79%
EPS beat(8)0
Avg EPS beat(8)-27.11%
EPS beat(12)2
Avg EPS beat(12)-18.28%
EPS beat(16)3
Avg EPS beat(16)-20.83%
Revenue beat(2)2
Avg Revenue beat(2)3.81%
Min Revenue beat(2)2.87%
Max Revenue beat(2)4.74%
Revenue beat(4)4
Avg Revenue beat(4)3.1%
Min Revenue beat(4)1.46%
Max Revenue beat(4)4.74%
Revenue beat(8)8
Avg Revenue beat(8)3.16%
Revenue beat(12)12
Avg Revenue beat(12)3.11%
Revenue beat(16)14
Avg Revenue beat(16)2.83%
PT rev (1m)0.3%
PT rev (3m)1.09%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)-11.37%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)1.71%
Valuation
Industry RankSector Rank
PE 58.67
Fwd PE 38.93
P/S 10.4
P/FCF N/A
P/OCF 15.49
P/B 1.49
P/tB 2.06
EV/EBITDA 17.32
EPS(TTM)1.08
EY1.7%
EPS(NY)1.63
Fwd EY2.57%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY6.46%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)1.78
PEG (5Y)N/A
Graham Number32.12
Profitability
Industry RankSector Rank
ROA 1.35%
ROE 2.46%
ROCE 3.58%
ROIC 2.83%
ROICexc 2.85%
ROICexgc 3.39%
OM 44.42%
PM (TTM) 17.18%
GM 92.56%
FCFM N/A
ROA(3y)1.5%
ROA(5y)1.45%
ROE(3y)2.62%
ROE(5y)2.58%
ROIC(3y)2.51%
ROIC(5y)2.49%
ROICexc(3y)2.52%
ROICexc(5y)2.53%
ROICexgc(3y)3.04%
ROICexgc(5y)3.01%
ROCE(3y)3.17%
ROCE(5y)3.15%
ROICexgc growth 3Y12.51%
ROICexgc growth 5Y-1.36%
ROICexc growth 3Y14.65%
ROICexc growth 5Y-3.26%
OM growth 3Y-1.7%
OM growth 5Y-2.42%
PM growth 3Y-2.35%
PM growth 5Y-11.32%
GM growth 3Y-0.27%
GM growth 5Y-0.26%
F-Score6
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF N/A
Debt/EBITDA 5.71
Cap/Depr 194.59%
Cap/Sales 86.68%
Interest Coverage 2.37
Cash Conversion 75.51%
Profit Quality N/A
Current Ratio 0.81
Quick Ratio 0.81
Altman-Z 1.08
F-Score6
WACC7.26%
ROIC/WACC0.39
Cap/Depr(3y)369.18%
Cap/Depr(5y)430.26%
Cap/Sales(3y)177.32%
Cap/Sales(5y)195.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.86%
EPS 3Y1.4%
EPS 5Y-6.62%
EPS Q2Q%16.67%
EPS Next Y32.96%
EPS Next 2Y28.87%
EPS Next 3Y20.41%
EPS Next 5Y13.63%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%
Revenue Next Year9.6%
Revenue Next 2Y7.72%
Revenue Next 3Y7.03%
Revenue Next 5Y6.67%
EBIT growth 1Y11.31%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year116.05%
EBIT Next 3Y35.61%
EBIT Next 5Y21.07%
FCF growth 1Y86.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.04%
OCF growth 3Y39.29%
OCF growth 5Y27.3%

REALTY INCOME CORP / O FAQ

Can you provide the ChartMill fundamental rating for REALTY INCOME CORP?

ChartMill assigns a fundamental rating of 4 / 10 to O.


Can you provide the valuation status for REALTY INCOME CORP?

ChartMill assigns a valuation rating of 2 / 10 to REALTY INCOME CORP (O). This can be considered as Overvalued.


What is the profitability of O stock?

REALTY INCOME CORP (O) has a profitability rating of 6 / 10.


What is the financial health of REALTY INCOME CORP (O) stock?

The financial health rating of REALTY INCOME CORP (O) is 2 / 10.


Can you provide the expected EPS growth for O stock?

The Earnings per Share (EPS) of REALTY INCOME CORP (O) is expected to grow by 32.96% in the next year.