VECTOR GROUP LTD (VGR)
US92240M1080 - Common Stock
Taking everything into account, VGR scores 6 out of 10 in our fundamental rating. VGR was compared to 10 industry peers in the Tobacco industry. VGR scores excellent on profitability, but there are some minor concerns on its financial health. VGR may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make VGR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year VGR was profitable.
VGR had a positive operating cash flow in the past year.
VGR had positive earnings in each of the past 5 years.
Each year in the past 5 years VGR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.88%, VGR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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.
VGR had an Average Return On Invested Capital over the past 3 years of 33.49%. This is significantly above the industry average of 21.47%.
The last Return On Invested Capital (39.38%) for VGR is above the 3 year average (33.49%), which is a sign of increasing profitability.
| Industry Rank | Sector 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 has a better Profit Margin (12.15%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of VGR has grown nicely.
The Operating Margin of VGR (24.34%) is better than 70.00% of its industry peers.
VGR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.39%, VGR perfoms like the industry average, 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VGR is creating value.
VGR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VGR has been increased compared to 5 years ago.
VGR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.18 indicates that VGR is not in any danger for bankruptcy at the moment.
VGR's Altman-Z score of 3.18 is in line compared to the rest of the industry. VGR outperforms 60.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.10, VGR is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 3.18 |
ROIC/WACC5.18
WACC7.6%
2.3 Liquidity
A Current Ratio of 2.65 indicates that VGR has no problem at all paying its short term obligations.
VGR's Current ratio of 2.65 is fine compared to the rest of the industry. VGR outperforms 80.00% of its industry peers.
A Quick Ratio of 2.18 indicates that VGR has no problem at all paying its short term obligations.
VGR has a Quick ratio of 2.18. This is amongst the best in the industry. VGR outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
VGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.57%, which is quite impressive.
The Earnings Per Share has been growing by 17.59% on average over the past years. This is quite good.
Looking at the last year, VGR shows a quite strong growth in Revenue. The Revenue has grown by 19.53% in the last year.
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.
The Revenue is expected to grow by 1.89% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.10 indicates a reasonable valuation of VGR.
Compared to the rest of the industry, the Price/Earnings ratio of VGR indicates a rather cheap valuation: VGR is cheaper than 90.00% of the companies listed in the same industry.
VGR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
The Price/Forward Earnings ratio is 9.84, which indicates a very decent valuation of VGR.
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 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.84 |
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.
70.00% of the companies in the same industry are more expensive than VGR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VGR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)0.57
EPS Next 2Y1.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VGR has a Yearly Dividend Yield of 6.76%, which is a nice return.
VGR's Dividend Yield is a higher than the industry average which is at 5.18.
VGR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
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 (7/25/2024, 7:18:45 PM)
After market: 12.79 +0.27 (+2.16%)12.52
+0.39 (+3.22%)
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 Cap1.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.84 | ||
| 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)2.31
PEG (5Y)0.57
Profitability
| Industry Rank | Sector 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 Rank | Sector 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