ONE LIBERTY PROPERTIES INC (OLP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OLP - US6824061039 - REIT
21.036 USD
+0.07 (+0.31%)
Overall OLP gets a fundamental rating of 4 out of 10. We evaluated OLP against 124 industry peers in the Diversified REITs industry. While OLP has a great profitability rating, there are quite some concerns on its financial health. OLP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- OLP had positive earnings in the past year.
- In the past year OLP had a positive cash flow from operations.
- OLP had positive earnings in each of the past 5 years.
- Each year in the past 5 years OLP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of OLP (4.02%) is better than 83.87% of its industry peers.
- Looking at the Return On Equity, with a value of 10.55%, OLP belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
- OLP has a better Return On Invested Capital (3.49%) than 65.32% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for OLP is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 10.55% | ||
| ROIC | 3.49% |
ROA(3y)4.24%
ROA(5y)4.21%
ROE(3y)10.53%
ROE(5y)10.58%
ROIC(3y)3.67%
ROIC(5y)3.55%
1.3 Margins
- The Profit Margin of OLP (33.47%) is better than 88.71% of its industry peers.
- In the last couple of years the Profit Margin of OLP has grown nicely.
- OLP has a better Operating Margin (35.56%) than 73.39% of its industry peers.
- In the last couple of years the Operating Margin of OLP has declined.
- The Gross Margin of OLP (79.96%) is better than 79.84% of its industry peers.
- In the last couple of years the Gross Margin of OLP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.56% | ||
| PM (TTM) | 33.47% | ||
| GM | 79.96% |
OM growth 3Y-1.48%
OM growth 5Y-2.95%
PM growth 3Y-10.85%
PM growth 5Y10.17%
GM growth 3Y-1.18%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OLP is destroying value.
- OLP has more shares outstanding than it did 1 year ago.
- OLP has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, OLP has about the same debt to assets ratio.
2.2 Solvency
- OLP has an Altman-Z score of 0.73. This is a bad value and indicates that OLP is not financially healthy and even has some risk of bankruptcy.
- OLP has a better Altman-Z score (0.73) than 64.52% of its industry peers.
- A Debt/Equity ratio of 1.50 is on the high side and indicates that OLP has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.50, OLP is in line with its industry, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.53
WACC6.6%
2.3 Liquidity
- A Current Ratio of 1.37 indicates that OLP should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.37, OLP is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
- A Quick Ratio of 1.37 indicates that OLP should not have too much problems paying its short term obligations.
- The Quick ratio of OLP (1.37) is better than 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
- The earnings per share for OLP have decreased by -3.09% in the last year.
- OLP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.80% yearly.
- Looking at the last year, OLP shows a small growth in Revenue. The Revenue has grown by 7.71% in the last year.
- Measured over the past years, OLP shows a small growth in Revenue. The Revenue has been growing by 1.34% on average per year.
EPS 1Y (TTM)-3.09%
EPS 3Y-8.8%
EPS 5Y9.8%
EPS Q2Q%121.74%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y3.06%
Revenue growth 5Y1.34%
Sales Q2Q%7.02%
3.2 Future
- The Earnings Per Share is expected to decrease by -6.70% on average over the next years.
- OLP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.16% yearly.
EPS Next Y-23.53%
EPS Next 2Y-38.75%
EPS Next 3Y-24.99%
EPS Next 5Y-6.7%
Revenue Next Year8.12%
Revenue Next 2Y7.08%
Revenue Next 3Y6.21%
Revenue Next 5Y4.16%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.40, OLP is valued correctly.
- Based on the Price/Earnings ratio, OLP is valued cheaply inside the industry as 89.52% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, OLP is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 40.05, the valuation of OLP can be described as expensive.
- 65.32% of the companies in the same industry are more expensive than OLP, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. OLP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 40.05 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as OLP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
- The decent profitability rating of OLP may justify a higher PE ratio.
- A cheap valuation may be justified as OLP's earnings are expected to decrease with -24.99% in the coming years.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-38.75%
EPS Next 3Y-24.99%
5. Dividend
5.1 Amount
- OLP has a Yearly Dividend Yield of 8.51%, which is a nice return.
- OLP's Dividend Yield is rather good when compared to the industry average which is at 6.82. OLP pays more dividend than 84.68% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, OLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
5.2 History
- The dividend of OLP has a limited annual growth rate of 0.12%.
- OLP has been paying a dividend for at least 10 years, so it has a reliable track record.
- As OLP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- 120.61% of the earnings are spent on dividend by OLP. This is not a sustainable payout ratio.
- The Dividend Rate of OLP has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP120.61%
EPS Next 2Y-38.75%
EPS Next 3Y-24.99%
ONE LIBERTY PROPERTIES INC / OLP FAQ
What is the ChartMill fundamental rating of ONE LIBERTY PROPERTIES INC (OLP) stock?
ChartMill assigns a fundamental rating of 4 / 10 to OLP.
Can you provide the valuation status for ONE LIBERTY PROPERTIES INC?
ChartMill assigns a valuation rating of 3 / 10 to ONE LIBERTY PROPERTIES INC (OLP). This can be considered as Overvalued.
Can you provide the profitability details for ONE LIBERTY PROPERTIES INC?
ONE LIBERTY PROPERTIES INC (OLP) has a profitability rating of 7 / 10.
What is the valuation of ONE LIBERTY PROPERTIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ONE LIBERTY PROPERTIES INC (OLP) is 13.4 and the Price/Book (PB) ratio is 1.49.
Can you provide the expected EPS growth for OLP stock?
The Earnings per Share (EPS) of ONE LIBERTY PROPERTIES INC (OLP) is expected to decline by -23.53% in the next year.