REALTY INCOME CORP (O) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:O - US7561091049 - REIT
57.88 USD
+0.38 (+0.66%)
O gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 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. While showing a medium growth rate, O is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year O was profitable.
O had a positive operating cash flow in the past year.
In the past 5 years O has always been profitable.
In the past 5 years O always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.35%, O is in line with its industry, outperforming 57.03% of the companies in the same industry.
O has a Return On Equity (2.46%) which is in line with its industry peers.
O has a Return On Invested Capital of 2.83%. This is comparable to the rest of the industry: O outperforms 52.34% of its industry peers.
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 3.06%.
The last Return On Invested Capital (2.83%) for O is above the 3 year average (2.51%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
O has a better Profit Margin (17.18%) than 68.75% of its industry peers.
In the last couple of years the Profit Margin of O has declined.
The Operating Margin of O (44.42%) is better than 89.06% of its industry peers.
In the last couple of years the Operating Margin of O has declined.
O has a Gross Margin of 92.56%. This is amongst the best in the industry. O outperforms 94.53% of its industry peers.
O's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for O has been increased compared to 5 years ago.
Compared to 1 year ago, O has a worse debt to assets ratio.
2.2 Solvency
O has an Altman-Z score of 0.97. This is a bad value and indicates that O is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of O (0.97) is better than 75.00% of its industry peers.
O has a Debt/Equity ratio of 0.73. This is a neutral value indicating O is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.73, O is doing good in the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.4
WACC7.01%
2.3 Liquidity
O has a Current 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.
Looking at the Current ratio, with a value of 0.81, O is doing worse than 60.16% of the companies in the same 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.
Looking at the Quick ratio, with a value of 0.81, O is doing worse than 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
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%.
Measured over the past years, O shows a very strong growth in Revenue. The Revenue has been growing by 28.78% on average per year.
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
Based on estimates for the next years, O will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.63% on average per year.
Based on estimates for the next years, O will show a small growth in Revenue. The Revenue will grow by 6.67% on average per year.
EPS Next Y34.84%
EPS Next 2Y24.7%
EPS Next 3Y18.84%
EPS Next 5Y13.63%
Revenue Next Year7.91%
Revenue Next 2Y6.35%
Revenue Next 3Y5.77%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 53.59, which means the current valuation is very expensive for O.
O's Price/Earnings is on the same level as the industry average.
O's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 37.98, which means the current valuation is very expensive for O.
Compared to the rest of the industry, the Price/Forward Earnings ratio of O indicates a somewhat cheap valuation: O is cheaper than 65.63% of the companies listed in the same industry.
O's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.59 | ||
| Fwd PE | 37.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as O.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.24 |
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.
A more expensive valuation may be justified as O's earnings are expected to grow with 18.84% in the coming years.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y24.7%
EPS Next 3Y18.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.66%, O is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
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
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 2Y24.7%
EPS Next 3Y18.84%
NYSE:O (12/3/2025, 2:42:09 PM)
57.88
+0.38 (+0.66%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner Change0.54%
Ins Owners0.1%
Ins Owner Change-0.51%
Market Cap53.24B
Revenue(TTM)5.60B
Net Income(TTM)962.12M
Analysts69.33
Price Target64.02 (10.61%)
Short Float %4.41%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
Yearly Dividend3.28
Dividend Growth(5Y)4.2%
DP298.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.27%
Min EPS beat(2)-38.76%
Max EPS beat(2)-19.77%
EPS beat(4)0
Avg EPS beat(4)-30.76%
Min EPS beat(4)-41.01%
Max EPS beat(4)-19.77%
EPS beat(8)0
Avg EPS beat(8)-29.1%
EPS beat(12)2
Avg EPS beat(12)-19.61%
EPS beat(16)3
Avg EPS beat(16)-21.83%
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)1.03%
PT rev (3m)2.11%
EPS NQ rev (1m)1.85%
EPS NQ rev (3m)18.53%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-5.13%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.59 | ||
| Fwd PE | 37.98 | ||
| P/S | 9.5 | ||
| P/FCF | N/A | ||
| P/OCF | 14.15 | ||
| P/B | 1.36 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)1.08
EY1.87%
EPS(NY)1.52
Fwd EY2.63%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY7.07%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)1.54
PEG (5Y)N/A
Graham Number32.12
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.97 |
F-Score6
WACC7.01%
ROIC/WACC0.4
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 Y34.84%
EPS Next 2Y24.7%
EPS Next 3Y18.84%
EPS Next 5Y13.63%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%
Revenue Next Year7.91%
Revenue Next 2Y6.35%
Revenue Next 3Y5.77%
Revenue Next 5Y6.67%
EBIT growth 1Y11.31%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year114.2%
EBIT Next 3Y34.44%
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.
What is the valuation status for O stock?
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 earnings growth outlook for REALTY INCOME CORP?
The Earnings per Share (EPS) of REALTY INCOME CORP (O) is expected to grow by 34.84% in the next year.
Is the dividend of REALTY INCOME CORP sustainable?
The dividend rating of REALTY INCOME CORP (O) is 5 / 10 and the dividend payout ratio is 298.2%.