ONE LIBERTY PROPERTIES INC (OLP) Stock Fundamental Analysis
NYSE:OLP - New York Stock Exchange, Inc. - US6824061039 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to OLP. OLP was compared to 129 industry peers in the Diversified REITs industry. OLP scores excellent on profitability, but there are 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.
OLP had a positive operating cash flow in the past year.
In the past 5 years OLP has always been profitable.
Each year in the past 5 years OLP had a positive operating cash flow.
1.2 Ratios
OLP's Return On Assets of 3.46% is amongst the best of the industry. OLP outperforms 83.72% of its industry peers.
The Return On Equity of OLP (9.27%) is better than 85.27% of its industry peers.
OLP's Return On Invested Capital of 3.34% is fine compared to the rest of the industry. OLP outperforms 65.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OLP is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 9.27% | ||
| ROIC | 3.34% |
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 (30.53%) is better than 86.82% of its industry peers.
OLP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 36.15%, OLP belongs to the best of the industry, outperforming 80.62% of the companies in the same industry.
In the last couple of years the Operating Margin of OLP has declined.
OLP has a Gross Margin of 80.63%. This is amongst the best in the industry. OLP outperforms 80.62% of its industry peers.
OLP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.15% | ||
| PM (TTM) | 30.53% | ||
| GM | 80.63% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OLP is destroying value.
OLP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OLP has been increased compared to 5 years ago.
Compared to 1 year ago, OLP has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that OLP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OLP (0.78) is better than 65.12% of its industry peers.
A Debt/Equity ratio of 1.55 is on the high side and indicates that OLP has dependencies on debt financing.
OLP's Debt to Equity ratio of 1.55 is on the low side compared to the rest of the industry. OLP is outperformed by 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.49
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.07 indicates that OLP should not have too much problems paying its short term obligations.
OLP has a Current ratio (1.07) which is in line with its industry peers.
OLP has a Quick Ratio of 1.07. This is a normal value and indicates that OLP is financially healthy and should not expect problems in meeting its short term obligations.
OLP has a Quick ratio (1.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
OLP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.31%.
The Earnings Per Share has been growing by 9.80% on average over the past years. This is quite good.
Looking at the last year, OLP shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
The Revenue has been growing slightly by 1.34% on average over the past years.
EPS 1Y (TTM)-1.31%
EPS 3Y-8.8%
EPS 5Y9.8%
EPS Q2Q%-21.74%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y3.06%
Revenue growth 5Y1.34%
Sales Q2Q%6.49%
3.2 Future
OLP is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -38.16% yearly.
OLP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.
EPS Next Y-55.99%
EPS Next 2Y-38.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.04%
Revenue Next 2Y8.32%
Revenue Next 3Y3.24%
Revenue Next 5Y2.74%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
OLP is valuated rather expensively with a Price/Earnings ratio of 18.13.
Compared to the rest of the industry, the Price/Earnings ratio of OLP indicates a rather cheap valuation: OLP is cheaper than 85.27% of the companies listed in the same industry.
OLP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
OLP is valuated quite expensively with a Price/Forward Earnings ratio of 45.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OLP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, OLP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 45.73 |
4.2 Price Multiples
OLP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. OLP is more expensive than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
OLP has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as OLP's earnings are expected to decrease with -38.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y-38.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OLP has a Yearly Dividend Yield of 7.35%, which is a nice return.
Compared to an average industry Dividend Yield of 6.78, OLP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, OLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
5.2 History
The dividend of OLP has a limited annual growth rate of 0.12%.
OLP has paid a dividend for at least 10 years, which is 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
137.49% of the earnings are spent on dividend by OLP. This is not a sustainable payout ratio.
OLP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP137.49%
EPS Next 2Y-38.16%
EPS Next 3YN/A
24.48
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners47.73%
Inst Owner Change-2.08%
Ins Owners13.55%
Ins Owner Change2.4%
Market Cap528.52M
Analysts76.67
Price Target30.09 (22.92%)
Short Float %0.47%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
Yearly Dividend1.88
Dividend Growth(5Y)0.12%
DP137.49%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)120.17%
Min EPS beat(2)-6.2%
Max EPS beat(2)246.54%
EPS beat(4)3
Avg EPS beat(4)143.57%
Min EPS beat(4)-6.2%
Max EPS beat(4)271.29%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.28%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)3.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-4%
Max Revenue beat(4)3.24%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)10.15%
Revenue beat(16)9
Avg Revenue beat(16)14.02%
PT rev (1m)0%
PT rev (3m)3.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)12.96%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)7.94%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 45.73 | ||
| P/S | 5.74 | ||
| P/FCF | N/A | ||
| P/OCF | 12.84 | ||
| P/B | 1.74 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)1.35
EY5.51%
EPS(NY)0.54
Fwd EY2.19%
FCF(TTM)-4.49
FCFYN/A
OCF(TTM)1.91
OCFY7.79%
SpS4.26
BVpS14.04
TBVpS13.11
PEG (NY)N/A
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 9.27% | ||
| ROCE | 4.22% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 3.46% | ||
| OM | 36.15% | ||
| PM (TTM) | 30.53% | ||
| GM | 80.63% | ||
| FCFM | N/A |
ROA(3y)4.24%
ROA(5y)4.21%
ROE(3y)10.53%
ROE(5y)10.58%
ROIC(3y)3.67%
ROIC(5y)3.55%
ROICexc(3y)3.8%
ROICexc(5y)3.66%
ROICexgc(3y)3.88%
ROICexgc(5y)3.75%
ROCE(3y)4.64%
ROCE(5y)4.5%
ROICexcg growth 3Y1.67%
ROICexcg growth 5Y-0.78%
ROICexc growth 3Y2.01%
ROICexc growth 5Y-0.46%
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%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.11 | ||
| Cap/Depr | 556.74% | ||
| Cap/Sales | 150.11% | ||
| Interest Coverage | 1.68 | ||
| Cash Conversion | 70.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 0.78 |
F-Score3
WACC6.86%
ROIC/WACC0.49
Cap/Depr(3y)163.84%
Cap/Depr(5y)149.12%
Cap/Sales(3y)43.24%
Cap/Sales(5y)40.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.31%
EPS 3Y-8.8%
EPS 5Y9.8%
EPS Q2Q%-21.74%
EPS Next Y-55.99%
EPS Next 2Y-38.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.82%
Revenue growth 3Y3.06%
Revenue growth 5Y1.34%
Sales Q2Q%6.49%
Revenue Next Year12.04%
Revenue Next 2Y8.32%
Revenue Next 3Y3.24%
Revenue Next 5Y2.74%
EBIT growth 1Y0.97%
EBIT growth 3Y1.54%
EBIT growth 5Y-1.65%
EBIT Next Year90.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2866.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.83%
OCF growth 3Y-7%
OCF growth 5Y1.52%