REALTY INCOME CORP (O)
US7561091049 - REIT
Overall O gets a fundamental rating of 4 out of 10. We evaluated O against 126 industry peers in the Diversified REITs industry. There are concerns on the financial health of O while its profitability can be described as average. While showing a medium growth rate, O is valued expensive at the moment. O also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year O was profitable.
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.
1.2 Ratios
O has a Return On Assets of 1.51%. This is in the better half of the industry: O outperforms 61.79% of its industry peers.
O has a Return On Equity (2.65%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.56%, O is in line with its industry, outperforming 47.97% of the companies in the same industry.
O had an Average Return On Invested Capital over the past 3 years of 2.21%. This is in line with the industry average of 2.95%.
The 3 year average ROIC (2.21%) for O is below the current ROIC(2.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 2.65% | ||
| ROIC | 2.56% |
ROA(3y)1.36%
ROA(5y)1.67%
ROE(3y)2.37%
ROE(5y)3.04%
ROIC(3y)2.21%
ROIC(5y)2.61%
1.3 Margins
With a decent Profit Margin value of 21.39%, O is doing good in the industry, outperforming 74.80% of the companies in the same industry.
O's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 44.02%, O belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
In the last couple of years the Operating Margin of O has declined.
O has a better Gross Margin (92.23%) than 95.12% of its industry peers.
In the last couple of years the Gross Margin of O has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.02% | ||
| PM (TTM) | 21.39% | ||
| GM | 92.23% |
OM growth 3Y-3.27%
OM growth 5Y-1.81%
PM growth 3Y-3.7%
PM growth 5Y-4.82%
GM growth 3Y-0.51%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so O is destroying value.
O has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, O has more shares outstanding
O has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that O is in the distress zone and has some risk of bankruptcy.
O has a better Altman-Z score (1.10) than 76.42% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that O is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.65, O is doing good in the industry, outperforming 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.35
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.42 indicates that O may have some problems paying its short term obligations.
O's Current ratio of 0.42 is on the low side compared to the rest of the industry. O is outperformed by 88.62% of its industry peers.
O has a Quick Ratio of 0.42. 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 worse Quick ratio (0.42) than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for O have decreased strongly by -11.89% in the last year.
The Revenue has grown by 21.99% in the past year. This is a very strong growth!
Measured over the past years, O shows a very strong growth in Revenue. The Revenue has been growing by 25.17% on average per year.
EPS 1Y (TTM)-11.89%
EPS 3Y2.5%
EPS 5Y0%
EPS growth Q2Q-16.67%
Revenue 1Y (TTM)21.99%
Revenue growth 3Y35.17%
Revenue growth 5Y25.17%
Revenue growth Q2Q21.11%
3.2 Future
The Earnings Per Share is expected to grow by 8.30% on average over the next years. This is quite good.
O is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.27% yearly.
EPS Next Y23.74%
EPS Next 2Y15.81%
EPS Next 3Y11.88%
EPS Next 5Y8.3%
Revenue Next Year25.87%
Revenue Next 2Y16.53%
Revenue Next 3Y13.27%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.49, O can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as O.
Compared to an average S&P500 Price/Earnings ratio of 24.67, O is valued quite expensively.
A Price/Forward Earnings ratio of 34.34 indicates a quite expensive valuation of O.
O's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. O is cheaper than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, O is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.49 | ||
| Fwd PE | 34.34 |
4.2 Price Multiples
O's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. O is more expensive than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.27 |
4.3 Compensation for Growth
O's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of O may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y15.81%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
O has a Yearly Dividend Yield of 5.73%, which is a nice return.
Compared to an average industry Dividend Yield of 6.03, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
The dividend of O has a limited annual growth rate of 2.91%.
O has paid a dividend for at least 10 years, which is a reliable track record.
O has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.91%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
O pays out 242.09% of its income as dividend. This is not a sustainable payout ratio.
The dividend of O is growing, but earnings are growing more, so the dividend growth is sustainable.
DP242.09%
EPS Next 2Y15.81%
EPS Next 3Y11.88%
REALTY INCOME CORP
NYSE:O (4/30/2024, 7:15:38 PM)
Premarket: 53.49 -0.05 (-0.09%)53.54
-0.77 (-1.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
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 | 42.49 | ||
| Fwd PE | 34.34 | ||
| 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)1.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 2.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 44.02% | ||
| PM (TTM) | 21.39% | ||
| GM | 92.23% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| 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)
Growth
EPS 1Y (TTM)-11.89%
EPS 3Y2.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.99%
Revenue growth 3Y35.17%
Revenue growth 5Y
Revenue growth 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