VECTOR GROUP LTD (VGR) Stock Fundamental Analysis
USA - NYSE:VGR - US92240M1080 - Common Stock
14.99 USD
+0.03 (+0.2%)
14.99 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VGR. VGR was compared to 8 industry peers in the Tobacco industry. While VGR has a great profitability rating, there are some minor concerns on its financial health. VGR is valued correctly, but it does not seem to be growing.
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.
In the past 5 years VGR always reported a positive cash flow from operatings.
1.2 Ratios
VGR has a Return On Assets of 17.97%. This is amongst the best in the industry. VGR outperforms 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.
VGR had an Average Return On Invested Capital over the past 3 years of 33.49%. This is significantly above the industry average of 14.21%.
| 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
VGR has a better Profit Margin (13.84%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of VGR has grown nicely.
VGR has a Operating Margin (25.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VGR has grown nicely.
Looking at the Gross Margin, with a value of 33.43%, VGR is in line with its industry, outperforming 55.56% of the companies in the same industry.
VGR's Gross Margin has been stable in the last couple of years.
| 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%
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.
VGR has more shares outstanding than it did 1 year ago.
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
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.
The Debt to FCF ratio of VGR is 6.84, which is on the high side as it means it would take VGR, 6.84 years of fcf income to pay off all of its debts.
VGR has a Debt to FCF ratio (6.84) which is in line with its industry peers.
| 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.
The Current ratio of VGR (2.43) is better than 77.78% of its industry peers.
VGR has a Quick Ratio of 2.06. This indicates that VGR is financially healthy and has no problem in meeting its short term obligations.
VGR's Quick ratio of 2.06 is amongst the best of the industry. VGR outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
VGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
Measured over the past years, VGR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.59% on average per year.
VGR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.98%.
The Revenue has been decreasing by -5.30% on average over the past years.
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
VGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.80% yearly.
The Revenue is expected to decrease by -10.29% on average over the next years. This is quite bad
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
VGR's Price/Earnings ratio is a bit cheaper when compared to the industry. VGR is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of VGR to the average of the S&P500 Index (25.67), we can say VGR is valued rather cheaply.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, VGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than VGR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VGR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| 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.
The decent profitability rating of VGR may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)0.68
EPS Next 2Y6.98%
EPS Next 3Y10.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, VGR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.18, 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 2.40.
| 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%
14.99
+0.03 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners64.19%
Inst Owner Change-45.34%
Ins Owners0.08%
Ins Owner Change0%
Market Cap2.36B
Revenue(TTM)1.42B
Net Income(TTM)196.65M
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
Graham NumberN/A
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%
ROICexgc growth 3Y11.03%
ROICexgc 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 FAQ
What is the ChartMill fundamental rating of VECTOR GROUP LTD (VGR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VGR.
What is the valuation status of VECTOR GROUP LTD (VGR) stock?
ChartMill assigns a valuation rating of 6 / 10 to VECTOR GROUP LTD (VGR). This can be considered as Fairly Valued.
How profitable is VECTOR GROUP LTD (VGR) stock?
VECTOR GROUP LTD (VGR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of VECTOR GROUP LTD (VGR) stock?
The Price/Earnings (PE) ratio for VECTOR GROUP LTD (VGR) is 11.9 and the Price/Book (PB) ratio is -3.31.
How financially healthy is VECTOR GROUP LTD?
The financial health rating of VECTOR GROUP LTD (VGR) is 5 / 10.