REALTY INCOME CORP (O) Stock Fundamental Analysis
USA - NYSE:O - US7561091049 - REIT
56.87 USD
+0.54 (+0.96%)
56.9298 USD
+0.06 (+0.11%)
O gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. O has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, O is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
O had positive earnings in the past year.
In the past year O had a positive cash flow from operations.
Each year in the past 5 years O has been profitable.
In the past 5 years O always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of O (1.27%) is comparable to the rest of the industry.
With a Return On Equity value of 2.32%, O perfoms like the industry average, outperforming 52.76% of the companies in the same industry.
O has a Return On Invested Capital of 2.73%. This is comparable to the rest of the industry: O outperforms 50.39% 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 3.09%.
The 3 year average ROIC (2.51%) for O is below the current ROIC(2.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 2.32% | ||
| ROIC | 2.73% |
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
Looking at the Profit Margin, with a value of 16.63%, O is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
O's Profit Margin has declined in the last couple of years.
O's Operating Margin of 44.06% is amongst the best of the industry. O outperforms 88.98% of its industry peers.
In the last couple of years the Operating Margin of O has declined.
Looking at the Gross Margin, with a value of 92.63%, O belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
O's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.06% | ||
| PM (TTM) | 16.63% | ||
| GM | 92.63% |
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
O has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, O has more shares outstanding
O has more shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 0.97, O is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
O has a Debt/Equity ratio of 0.73. This is a neutral value indicating O is somewhat dependend on debt financing.
The Debt to Equity ratio of O (0.73) is better than 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.39
WACC7%
2.3 Liquidity
O has a Current Ratio of 1.00. This is a normal value and indicates that O is financially healthy and should not expect problems in meeting its short term obligations.
O has a Current ratio (1.00) which is comparable to the rest of the industry.
O has a Quick Ratio of 1.00. This is a normal value and indicates that O is financially healthy and should not expect problems in meeting its short term obligations.
O's Quick ratio of 1.00 is in line compared to the rest of the industry. O outperforms 55.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
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 29.23% 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 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)29.23%
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.
O is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.48% yearly.
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 5Y6.48%
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 52.66, which means the current valuation is very expensive for O.
O's Price/Earnings ratio is in line with the industry average.
O is valuated expensively when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.32 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 67.72% of the companies in the same industry.
O is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.66 | ||
| Fwd PE | 37.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of O indicates a slightly more expensive valuation: O is more expensive than 62.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.34 |
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 18.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)N/A
EPS Next 2Y24.7%
EPS Next 3Y18.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.74%, O is a good candidate for dividend investing.
O's Dividend Yield is comparable with the industry average which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.37, O pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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 310.62% 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.
DP310.62%
EPS Next 2Y24.7%
EPS Next 3Y18.84%
56.87
+0.54 (+0.96%)
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 Change-0.26%
Ins Owners0.1%
Ins Owner Change0.56%
Market Cap52.00B
Revenue(TTM)5.27B
Net Income(TTM)908.13M
Analysts69.33
Price Target63.88 (12.33%)
Short Float %4.24%
Short Ratio7.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
Yearly Dividend3.28
Dividend Growth(5Y)4.2%
DP310.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.12%
Min EPS beat(2)-38.76%
Max EPS beat(2)-23.48%
EPS beat(4)0
Avg EPS beat(4)-30.57%
Min EPS beat(4)-41.01%
Max EPS beat(4)-19.05%
EPS beat(8)1
Avg EPS beat(8)-26.29%
EPS beat(12)3
Avg EPS beat(12)-17.27%
EPS beat(16)3
Avg EPS beat(16)-21.62%
Revenue beat(2)2
Avg Revenue beat(2)3.1%
Min Revenue beat(2)2.87%
Max Revenue beat(2)3.33%
Revenue beat(4)4
Avg Revenue beat(4)2.35%
Min Revenue beat(4)1.46%
Max Revenue beat(4)3.33%
Revenue beat(8)8
Avg Revenue beat(8)2.83%
Revenue beat(12)11
Avg Revenue beat(12)2.71%
Revenue beat(16)14
Avg Revenue beat(16)2.67%
PT rev (1m)0.82%
PT rev (3m)2.62%
EPS NQ rev (1m)-2.06%
EPS NQ rev (3m)19.91%
EPS NY rev (1m)-4.43%
EPS NY rev (3m)-7.33%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.66 | ||
| Fwd PE | 37.32 | ||
| P/S | 9.52 | ||
| P/FCF | N/A | ||
| P/OCF | 14.2 | ||
| P/B | 1.33 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 16.34 |
EPS(TTM)1.08
EY1.9%
EPS(NY)1.52
Fwd EY2.68%
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)4
OCFY7.04%
SpS5.97
BVpS42.82
TBVpS30.83
PEG (NY)1.51
PEG (5Y)N/A
Graham Number32.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 2.32% | ||
| ROCE | 3.46% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.76% | ||
| ROICexgc | 3.3% | ||
| OM | 44.06% | ||
| PM (TTM) | 16.63% | ||
| GM | 92.63% | ||
| 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 | 5.83 | ||
| Cap/Depr | 190.73% | ||
| Cap/Sales | 86.1% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 75.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 0.97 |
F-Score6
WACC7%
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 Y34.84%
EPS Next 2Y24.7%
EPS Next 3Y18.84%
EPS Next 5Y13.63%
Revenue 1Y (TTM)29.23%
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 5Y6.48%
EBIT growth 1Y14.81%
EBIT growth 3Y34%
EBIT growth 5Y25.67%
EBIT Next Year114.2%
EBIT Next 3Y34.44%
EBIT Next 5Y21.07%
FCF growth 1Y86.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.03%
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 5 / 10 to O.
What is the valuation status for O stock?
ChartMill assigns a valuation rating of 3 / 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 310.62%.