VECTOR GROUP LTD (VGR)
US92240M1080 - Common Stock
We assign a fundamental rating of 7 out of 10 to VGR. VGR was compared to 10 industry peers in the Tobacco industry. VGR has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VGR. With these ratings, VGR could be worth investigating further for value investing!.
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.
Each year in the past 5 years VGR has been profitable.
VGR 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 22.73%, VGR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
VGR's Return On Invested Capital of 39.03% is amongst the best of 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 21.15%.
The last Return On Invested Capital (39.03%) for VGR is above the 3 year average (33.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.73% | ||
| ROE | N/A | ||
| ROIC | 39.03% |
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 (12.08%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of VGR has grown nicely.
VGR has a better Operating Margin (24.02%) than 70.00% of its industry peers.
In the last couple of years the Operating Margin of VGR has grown nicely.
VGR's Gross Margin of 31.95% is in line compared to the rest of the industry. VGR outperforms 60.00% 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 | 24.02% | ||
| PM (TTM) | 12.08% | ||
| GM | 31.95% |
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.
VGR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VGR has been reduced compared to a year ago.
2.2 Solvency
VGR has an Altman-Z score of 3.28. This indicates that VGR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.28, VGR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of VGR is 6.88, which is on the high side as it means it would take VGR, 6.88 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.88, VGR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.88 | ||
| Altman-Z | 3.28 |
ROIC/WACC5.14
WACC7.59%
2.3 Liquidity
A Current Ratio of 3.52 indicates that VGR has no problem at all paying its short term obligations.
VGR has a better Current ratio (3.52) than 90.00% of its industry peers.
A Quick Ratio of 2.88 indicates that VGR has no problem at all paying its short term obligations.
The Quick ratio of VGR (2.88) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.84% over the past year.
The Earnings Per Share has been growing by 17.59% on average over the past years. This is quite good.
VGR shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.03%.
The Revenue has been decreasing by -5.30% on average over the past years.
EPS 1Y (TTM)27.84%
EPS 3Y11.27%
EPS 5Y17.59%
EPS growth Q2Q19.35%
Revenue 1Y (TTM)22.03%
Revenue growth 3Y-10.74%
Revenue growth 5Y-5.3%
Revenue growth Q2Q-0.94%
3.2 Future
VGR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.08% yearly.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y4.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.49%
Revenue Next 2Y5.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 8.25, the valuation of VGR can be described as reasonable.
90.00% of the companies in the same industry are more expensive than VGR, based on the Price/Earnings ratio.
VGR is valuated cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of VGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VGR indicates a rather cheap valuation: VGR is cheaper than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, VGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VGR indicates a rather cheap valuation: VGR is cheaper than 90.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VGR is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of VGR may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)0.47
EPS Next 2Y4.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.06%, VGR is a good candidate for dividend investing.
VGR's Dividend Yield is a higher than the industry average which is at 5.93.
Compared to an average S&P500 Dividend Yield of 2.40, VGR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.06% |
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
VGR pays out 59.45% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP59.45%
EPS Next 2Y4.08%
EPS Next 3YN/A
VECTOR GROUP LTD
NYSE:VGR (4/19/2024, 2:08:47 PM)
10.235
+0.2 (+1.94%)
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 Cap1.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.06% |
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)
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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 | 8.25 | ||
| Fwd PE | 7.67 | ||
| 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)1.08
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.73% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.02% | ||
| PM (TTM) | 12.08% | ||
| GM | 31.95% | ||
| 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 Turnover1.88
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 | 3.52 | ||
| Quick Ratio | 2.88 | ||
| 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)
Growth
EPS 1Y (TTM)27.84%
EPS 3Y11.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.03%
Revenue growth 3Y-10.74%
Revenue growth 5Y
Revenue growth 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