VGR Fundamental Analysis - VECTOR GROUP LTD

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to VGR. VGR was compared to 8 industry peers in the Tobacco industry. VGR has an excellent profitability rating, but there are some minor concerns on its financial health. VGR has a valuation in line with the averages, but it does not seem to be growing.

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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.

VGR had positive earnings in each of the past 5 years.

In the past 5 years VGR always reported a positive cash flow from operatings.

1.2 Ratios

VGR has a better Return On Assets (17.97%) than 88.89% of its industry peers.

With a decent Return On Invested Capital value of 32.14%, VGR is doing good in the industry, outperforming 77.78% of the companies in the same industry.

Measured over the past 3 years, the Average Return On Invested Capital for VGR is significantly above the industry average of 14.45%.

		Industry Rank	Sector Rank
ROA	17.97%
ROE	N/A
ROIC	32.14%

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

With a decent Profit Margin value of 13.84%, VGR is doing good in the industry, outperforming 66.67% of the companies in the same industry.

VGR's Profit Margin has improved in the last couple of years.

VGR's Operating Margin of 25.26% is in line compared to the rest of the industry. VGR outperforms 55.56% of its industry peers.

In the last couple of years the Operating Margin of VGR has grown nicely.

VGR's Gross Margin of 33.43% is in line compared to the rest of the industry. VGR outperforms 55.56% of its industry peers.

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	25.26%
PM (TTM)	13.84%
GM	33.43%

OM growth 3Y16.89%

OM growth 5Y15.47%

PM growth 3Y40.56%

PM growth 5Y35.62%

GM growth 3Y0.56%

GM growth 5Y0.88%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VGR is creating value.

The number of shares outstanding for VGR has been increased compared to 1 year ago.

Compared to 5 years ago, VGR has more shares outstanding

VGR has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.67 indicates that VGR is not a great score, but indicates only limited risk for bankruptcy at the moment.

VGR has a Altman-Z score of 2.67. This is in the lower half of the industry: VGR underperforms 66.67% of its industry peers.

VGR has a debt to FCF ratio of 6.84. This is a slightly negative value and a sign of low solvency as VGR would need 6.84 years to pay back of all of its debts.

The Debt to FCF ratio of VGR (6.84) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	6.84
Altman-Z	2.67

ROIC/WACC4.22

WACC7.62%

2.3 Liquidity

VGR has a Current Ratio of 2.43. This indicates that VGR is financially healthy and has no problem in meeting its short term obligations.

With a decent Current ratio value of 2.43, VGR is doing good in the industry, outperforming 77.78% of the companies in the same industry.

A Quick Ratio of 2.06 indicates that VGR has no problem at all paying its short term obligations.

With an excellent Quick ratio value of 2.06, VGR belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.43
Quick Ratio	2.06

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.60% over the past year.

VGR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.59% yearly.

Looking at the last year, VGR shows a very negative growth in Revenue. The Revenue has decreased by -19.98% in the last year.

VGR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.30% yearly.

EPS 1Y (TTM)15.6%

EPS 3Y11.27%

EPS 5Y17.59%

EPS Q2Q%6.25%

Revenue 1Y (TTM)-19.98%

Revenue growth 3Y-10.74%

Revenue growth 5Y-5.3%

Sales Q2Q%1.71%

3.2 Future

The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.

VGR is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.29% yearly.

EPS Next Y5.32%

EPS Next 2Y6.98%

EPS Next 3Y10.8%

EPS Next 5YN/A

Revenue Next Year-15.64%

Revenue Next 2Y-7.51%

Revenue Next 3Y-10.29%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.90, the valuation of VGR can be described as very reasonable.

Based on the Price/Earnings ratio, VGR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.

VGR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.

A Price/Forward Earnings ratio of 10.56 indicates a reasonable valuation of VGR.

Based on the Price/Forward Earnings ratio, VGR is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.

The average S&P500 Price/Forward Earnings ratio is at 22.86. VGR is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	11.9
Fwd PE	10.56

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VGR is valued a bit cheaper than 66.67% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, VGR is valued a bit cheaper than 66.67% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	11.74
EV/EBITDA	8.37

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 a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)2.24

PEG (5Y)0.68

EPS Next 2Y6.98%

EPS Next 3Y10.8%

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5. Dividend

5.1 Amount

VGR has a Yearly Dividend Yield of 5.34%, which is a nice return.

VGR's Dividend Yield is a higher than the industry average which is at 3.73.

VGR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.

		Industry Rank	Sector Rank
Dividend Yield	5.34%

5.2 History

The dividend of VGR decreases each year by -11.81%.

VGR has been paying a dividend for at least 10 years, so it has 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

64.32% of the earnings are spent on dividend by VGR. This is not a sustainable payout ratio.

DP64.32%

EPS Next 2Y6.98%

EPS Next 3Y10.8%

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VECTOR GROUP LTD

NYSE:VGR (10/4/2024, 8:04:00 PM)

After market: 14.99 0 (0%)

14.99

+0.03 (+0.2%)

Chartmill FA Rating

GICS SectorConsumer Staples

GICS IndustryGroupFood, Beverage & Tobacco

GICS IndustryTobacco

Earnings (Last)07-31 2024-07-31/amc

Earnings (Next)11-06 2024-11-06/bmo

Inst Owners64.19%

Inst Owner Change0%

Ins Owners0.08%

Ins Owner Change0%

Market Cap2.36B

Analysts83.33

Price Target16.32 (8.87%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	5.34%

Yearly Dividend0.81

Dividend Growth(5Y)-11.81%

DP64.32%

Div Incr Years0

Div Non Decr Years3

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)-0.33%

Min EPS beat(2)-12.87%

Max EPS beat(2)12.21%

EPS beat(4)2

Avg EPS beat(4)1.14%

Min EPS beat(4)-12.87%

Max EPS beat(4)14.48%

EPS beat(8)3

Avg EPS beat(8)-2.62%

EPS beat(12)3

Avg EPS beat(12)-11.57%

EPS beat(16)7

Avg EPS beat(16)6.07%

Revenue beat(2)1

Avg Revenue beat(2)-1.06%

Min Revenue beat(2)-3.58%

Max Revenue beat(2)1.47%

Revenue beat(4)1

Avg Revenue beat(4)-10.18%

Min Revenue beat(4)-38.38%

Max Revenue beat(4)1.47%

Revenue beat(8)3

Avg Revenue beat(8)-3.06%

Revenue beat(12)6

Avg Revenue beat(12)3.33%

Revenue beat(16)9

Avg Revenue beat(16)2.99%

PT rev (1m)0%

PT rev (3m)3.23%

EPS NQ rev (1m)0%

EPS NQ rev (3m)18.06%

EPS NY rev (1m)0%

EPS NY rev (3m)0.9%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.74%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-15.69%

Valuation

		Industry Rank	Sector Rank
PE	11.9
Fwd PE	10.56
P/S	1.66
P/FCF	11.74
P/OCF	11.39
P/B	N/A
P/tB	N/A
EV/EBITDA	8.37

EPS(TTM)1.26

EY8.41%

EPS(NY)1.42

Fwd EY9.47%

FCF(TTM)1.28

FCFY8.52%

OCF(TTM)1.32

OCFY8.78%

SpS9.03

BVpS-4.53

TBVpS-5.22

PEG (NY)2.24

PEG (5Y)0.68

Profitability

		Industry Rank	Sector Rank
ROA	17.97%
ROE	N/A
ROCE	44.08%
ROIC	32.14%
ROICexc	92.65%
ROICexgc	149.57%
OM	25.26%
PM (TTM)	13.84%
GM	33.43%
FCFM	14.14%

ROA(3y)20.18%

ROA(5y)14.68%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)33.49%

ROIC(5y)27.54%

ROICexc(3y)63.91%

ROICexc(5y)52.39%

ROICexgc(3y)88.47%

ROICexgc(5y)77.55%

ROCE(3y)45.93%

ROCE(5y)37.78%

ROICexcg growth 3Y11.03%

ROICexcg growth 5Y-15.8%

ROICexc growth 3Y16.6%

ROICexc growth 5Y5.87%

OM growth 3Y16.89%

OM growth 5Y15.47%

PM growth 3Y40.56%

PM growth 5Y35.62%

GM growth 3Y0.56%

GM growth 5Y0.88%

F-Score6

Asset Turnover1.3

Health

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	6.84
Debt/EBITDA	3.76
Cap/Depr	90.77%
Cap/Sales	0.43%
Interest Coverage	250
Cash Conversion	56.62%
Profit Quality	102.18%
Current Ratio	2.43
Quick Ratio	2.06
Altman-Z	2.67

F-Score6

WACC7.62%

ROIC/WACC4.22

Cap/Depr(3y)124.24%

Cap/Depr(5y)110.33%

Cap/Sales(3y)0.85%

Cap/Sales(5y)0.83%

Profit Quality(3y)112.11%

Profit Quality(5y)146.38%

High Growth Momentum

Growth

EPS 1Y (TTM)15.6%

EPS 3Y11.27%

EPS 5Y17.59%

EPS Q2Q%6.25%

EPS Next Y5.32%

EPS Next 2Y6.98%

EPS Next 3Y10.8%

EPS Next 5YN/A

Revenue 1Y (TTM)-19.98%

Revenue growth 3Y-10.74%

Revenue growth 5Y-5.3%

Sales Q2Q%1.71%

Revenue Next Year-15.64%

Revenue Next 2Y-7.51%

Revenue Next 3Y-10.29%

Revenue Next 5YN/A

EBIT growth 1Y-13.04%

EBIT growth 3Y4.34%

EBIT growth 5Y9.35%

EBIT Next Year20.36%

EBIT Next 3Y10.31%

EBIT Next 5YN/A

FCF growth 1Y-13.3%

FCF growth 3Y-7.06%

FCF growth 5Y3.98%

OCF growth 1Y-15.52%

OCF growth 3Y-7.75%

OCF growth 5Y2.92%

VECTOR GROUP LTD (VGR) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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