ONE LIBERTY PROPERTIES INC (OLP) Stock Fundamental Analysis
NYSE:OLP - New York Stock Exchange, Inc. - US6824061039 - REIT - Currency: USD
Overall OLP gets a fundamental rating of 4 out of 10. We evaluated OLP against 128 industry peers in the Diversified REITs industry. While OLP has a great profitability rating, there are quite some concerns on its financial health. OLP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year OLP was profitable.
In the past year OLP had a positive cash flow from operations.
OLP had positive earnings in each of the past 5 years.
OLP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.46%, OLP belongs to the top of the industry, outperforming 83.59% of the companies in the same industry.
OLP's Return On Equity of 9.27% is amongst the best of the industry. OLP outperforms 85.16% of its industry peers.
OLP's Return On Invested Capital of 3.34% is fine compared to the rest of the industry. OLP outperforms 65.63% of its industry peers.
OLP had an Average Return On Invested Capital over the past 3 years of 3.67%. This is in line with the industry average of 3.14%.
| 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
Looking at the Profit Margin, with a value of 30.53%, OLP belongs to the top of the industry, outperforming 86.72% of the companies in the same industry.
OLP's Profit Margin has improved in the last couple of years.
OLP has a Operating Margin of 36.15%. This is amongst the best in the industry. OLP outperforms 80.47% of its industry peers.
In the last couple of years the Operating Margin of OLP has declined.
The Gross Margin of OLP (80.63%) is better than 80.47% 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
OLP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OLP has been increased compared to 1 year ago.
Compared to 5 years ago, OLP has more shares outstanding
The debt/assets ratio for OLP has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that OLP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.76, OLP is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
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 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.41
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.07 indicates that OLP should not have too much problems paying its short term obligations.
The Current ratio of OLP (1.07) is comparable to the rest of the industry.
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.
The Revenue has been growing slightly by 1.82% in the past year.
OLP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.34% yearly.
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.
The Revenue is expected to grow by 2.74% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.61, OLP is valued on the expensive side.
OLP's Price/Earnings ratio is rather cheap when compared to the industry. OLP is cheaper than 86.72% of the companies in the same industry.
OLP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 44.42 indicates a quite expensive valuation of OLP.
60.16% of the companies in the same industry are more expensive than OLP, based on the Price/Forward Earnings ratio.
OLP is valuated expensively when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 44.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLP is valued a bit more expensive than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.81 |
4.3 Compensation for Growth
The excellent 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 -38.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y-38.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OLP has a Yearly Dividend Yield of 7.47%, which is a nice return.
OLP's Dividend Yield is a higher than the industry average which is at 6.79.
Compared to an average S&P500 Dividend Yield of 2.43, OLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.47% |
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
OLP pays out 137.49% of its income as dividend. 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.
DP137.49%
EPS Next 2Y-38.16%
EPS Next 3YN/A
23.78
-0.33 (-1.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners46.93%
Inst Owner Change-2.08%
Ins Owners12.81%
Ins Owner Change2.08%
Market Cap513.41M
Analysts76.67
Price Target29.58 (24.39%)
Short Float %0.57%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.47% |
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)-1.69%
PT rev (3m)-1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 44.42 | ||
| P/S | 5.58 | ||
| P/FCF | N/A | ||
| P/OCF | 12.48 | ||
| P/B | 1.69 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 16.81 |
EPS(TTM)1.35
EY5.68%
EPS(NY)0.54
Fwd EY2.25%
FCF(TTM)-4.49
FCFYN/A
OCF(TTM)1.91
OCFY8.01%
SpS4.26
BVpS14.04
TBVpS13.11
PEG (NY)N/A
PEG (5Y)1.8
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 | 0.76 |
F-Score3
WACC8.19%
ROIC/WACC0.41
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%