VECTOR GROUP LTD (VGR)

US92240M1080 - Common Stock

10.865  -0.06 (-0.59%)

Fundamental Rating

6

Overall VGR gets a fundamental rating of 6 out of 10. We evaluated VGR against 10 industry peers in the Tobacco industry. VGR has an excellent profitability rating, but there are some minor concerns on its financial health. VGR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make VGR suitable for value investing!



8

1. Profitability

1.1 Basic Checks

VGR had positive earnings in the past year.
VGR had a positive operating cash flow in the past year.
In the past 5 years VGR has always been profitable.
VGR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of VGR (20.88%) is better than 90.00% of its industry peers.
VGR has a Return On Invested Capital of 39.38%. This is amongst the best in the industry. VGR outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VGR is significantly above the industry average of 21.37%.
The 3 year average ROIC (33.49%) for VGR is below the current ROIC(39.38%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 20.88%
ROE N/A
ROIC 39.38%
ROA(3y)20.18%
ROA(5y)14.68%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.49%
ROIC(5y)27.54%

1.3 Margins

VGR's Profit Margin of 12.15% is fine compared to the rest of the industry. VGR outperforms 70.00% of its industry peers.
VGR's Profit Margin has improved in the last couple of years.
VGR's Operating Margin of 24.34% is fine compared to the rest of the industry. VGR outperforms 70.00% of its industry peers.
VGR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.39%, VGR is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of VGR has remained more or less at the same level.
Industry RankSector Rank
OM 24.34%
PM (TTM) 12.15%
GM 32.39%
OM growth 3Y16.89%
OM growth 5Y15.47%
PM growth 3Y40.56%
PM growth 5Y35.62%
GM growth 3Y0.56%
GM growth 5Y0.88%

6

2. Health

2.1 Basic Checks

VGR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VGR has more shares outstanding
Compared to 5 years ago, VGR has more shares outstanding
Compared to 1 year ago, VGR has an improved debt to assets ratio.

2.2 Solvency

VGR has an Altman-Z score of 3.10. This indicates that VGR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.10, VGR is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of VGR is 7.10, which is on the high side as it means it would take VGR, 7.10 years of fcf income to pay off all of its debts.
VGR has a Debt to FCF ratio (7.10) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.1
Altman-Z 3.1
ROIC/WACC5.15
WACC7.64%

2.3 Liquidity

VGR has a Current Ratio of 2.65. This indicates that VGR is financially healthy and has no problem in meeting its short term obligations.
VGR has a better Current ratio (2.65) than 80.00% of its industry peers.
VGR has a Quick Ratio of 2.18. This indicates that VGR is financially healthy and has no problem in meeting its short term obligations.
VGR's Quick ratio of 2.18 is amongst the best of the industry. VGR outperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.18

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.57% over the past year.
The Earnings Per Share has been growing by 17.59% on average over the past years. This is quite good.
The Revenue has grown by 19.53% in the past year. This is quite good.
The Revenue has been decreasing by -5.30% on average over the past years.
EPS 1Y (TTM)21.57%
EPS 3Y11.27%
EPS 5Y17.59%
EPS Q2Q%0%
Revenue 1Y (TTM)19.53%
Revenue growth 3Y-10.74%
Revenue growth 5Y-5.3%
Sales Q2Q%-2.87%

3.2 Future

Based on estimates for the next years, VGR will show a small growth in Earnings Per Share. The EPS will grow by 1.31% on average per year.
Based on estimates for the next years, VGR will show a small growth in Revenue. The Revenue will grow by 1.89% on average per year.
EPS Next Y4.38%
EPS Next 2Y1.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y1.89%
Revenue Next 3YN/A
Revenue Next 5YN/A

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.76, which indicates a very decent valuation of VGR.
Based on the Price/Earnings ratio, VGR is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.82. VGR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.54, the valuation of VGR can be described as very reasonable.
VGR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VGR is cheaper than 80.00% of the companies in the same industry.
VGR is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.80, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.76
Fwd PE 8.54

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VGR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VGR indicates a somewhat cheap valuation: VGR is cheaper than 70.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.84
EV/EBITDA 5.79

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of VGR may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)0.5
EPS Next 2Y1.31%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

VGR has a Yearly Dividend Yield of 7.41%, which is a nice return.
Compared to an average industry Dividend Yield of 5.61, VGR pays a bit more dividend than its industry peers.
VGR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 7.41%

5.2 History

The dividend of VGR decreases each year by -11.81%.
VGR has paid a dividend for at least 10 years, which is a reliable track record.
VGR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.81%
Div Incr Years0
Div Non Decr Years3

5.3 Sustainability

59.53% of the earnings are spent on dividend by VGR. This is a bit on the high side, but may be sustainable.
DP59.53%
EPS Next 2Y1.31%
EPS Next 3YN/A

VECTOR GROUP LTD

NYSE:VGR (5/30/2024, 11:07:44 AM)

10.865

-0.06 (-0.59%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.71B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 7.41%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.76
Fwd PE 8.54
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2
PEG (5Y)0.5
Profitability
Industry RankSector Rank
ROA 20.88%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 24.34%
PM (TTM) 12.15%
GM 32.39%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.72
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.65
Quick Ratio 2.18
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.57%
EPS 3Y11.27%
EPS 5Y
EPS Q2Q%
EPS Next Y4.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.53%
Revenue growth 3Y-10.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y