REALTY INCOME CORP (O) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:O - US7561091049 - REIT
56.035 USD
-0.64 (-1.12%)
Overall O gets a fundamental rating of 4 out of 10. We evaluated O 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. O is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year O was profitable.
In the past year O had a positive cash flow from operations.
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
O has a Return On Assets of 1.35%. This is comparable to the rest of the industry: O outperforms 53.91% of its industry peers.
O has a Return On Equity of 2.46%. This is comparable to the rest of the industry: O outperforms 52.34% of its industry peers.
With a Return On Invested Capital value of 2.83%, O perfoms like the industry average, outperforming 52.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for O is in line with the industry average of 3.05%.
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
With a decent Profit Margin value of 17.18%, O is doing good in the industry, outperforming 64.84% of the companies in the same industry.
In the last couple of years the Profit Margin of O has declined.
O's Operating Margin of 44.42% is amongst the best of the industry. O outperforms 89.06% of its industry peers.
O's Operating Margin has declined in the last couple of years.
The Gross Margin of O (92.56%) is better than 94.53% 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 | 44.42% | ||
| 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.
Compared to 1 year ago, O has more shares outstanding
O has more shares outstanding than it did 5 years ago.
The debt/assets ratio for O is higher compared to a year ago.
2.2 Solvency
O has an Altman-Z score of 0.96. 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 (0.96) is better than 74.22% 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.
O has a Debt to Equity ratio of 0.73. This is in the better half of the industry: O outperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.4
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.81 indicates that O may have some problems paying its short term obligations.
O's Current ratio of 0.81 is in line compared to the rest of the industry. O outperforms 42.97% of its industry peers.
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 (0.81) which is comparable to the rest of the 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%.
The Earnings Per Share has been decreasing by -6.62% on average over the past years.
The Revenue has grown by 11.88% in the past year. This is quite good.
O shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.78% yearly.
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.
The Revenue is expected to grow by 6.67% on average over the next years.
EPS Next Y33.33%
EPS Next 2Y27.13%
EPS Next 3Y20.05%
EPS Next 5Y13.63%
Revenue Next Year8.54%
Revenue Next 2Y7.11%
Revenue Next 3Y6.84%
Revenue Next 5Y6.67%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.88, the valuation of O can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as O.
Compared to an average S&P500 Price/Earnings ratio of 26.61, O is valued quite expensively.
Based on the Price/Forward Earnings ratio of 35.38, the valuation of O can be described as expensive.
Based on the Price/Forward Earnings ratio, O is valued a bit cheaper than 69.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of O to the average of the S&P500 Index (24.01), we can say O is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.88 | ||
| Fwd PE | 35.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of O is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.09 |
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.
O's earnings are expected to grow with 20.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y27.13%
EPS Next 3Y20.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.71%, O is a good candidate for dividend investing.
O's Dividend Yield is comparable with the industry average which is at 6.33.
Compared to an average S&P500 Dividend Yield of 1.87, O pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
5.2 History
The dividend of O has a limited annual growth rate of 4.20%.
O has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
O pays out 298.20% of its income as dividend. 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 2Y27.13%
EPS Next 3Y20.05%
NYSE:O (12/23/2025, 3:21:09 PM)
56.035
-0.64 (-1.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change0.56%
Ins Owners0.1%
Ins Owner Change-0.51%
Market Cap51.55B
Revenue(TTM)5.60B
Net Income(TTM)962.12M
Analysts69.33
Price Target63.86 (13.96%)
Short Float %5.14%
Short Ratio8.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
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)-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)-0.03%
PT rev (3m)0.89%
EPS NQ rev (1m)-15.23%
EPS NQ rev (3m)-15.23%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-5.5%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.88 | ||
| Fwd PE | 35.38 | ||
| P/S | 9.2 | ||
| P/FCF | N/A | ||
| P/OCF | 13.7 | ||
| P/B | 1.32 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 16.09 |
EPS(TTM)1.08
EY1.93%
EPS(NY)1.58
Fwd EY2.83%
FCF(TTM)-1.19
FCFYN/A
OCF(TTM)4.09
OCFY7.3%
SpS6.09
BVpS42.45
TBVpS30.72
PEG (NY)1.56
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 | 0.96 |
F-Score6
WACC7.04%
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 Y33.33%
EPS Next 2Y27.13%
EPS Next 3Y20.05%
EPS Next 5Y13.63%
Revenue 1Y (TTM)11.88%
Revenue growth 3Y36.33%
Revenue growth 5Y28.78%
Sales Q2Q%10.49%
Revenue Next Year8.54%
Revenue Next 2Y7.11%
Revenue Next 3Y6.84%
Revenue Next 5Y6.67%
EBIT growth 1Y11.31%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year114.98%
EBIT Next 3Y34.88%
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 33.33% 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%.