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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VGR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VGR was profitable.
In the past year VGR had a positive cash flow from operations.
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
The Return On Assets of VGR (17.97%) is better than 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 32.14%, VGR is in the better half of 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
VGR's Profit Margin of 13.84% is fine compared to the rest of the industry. VGR outperforms 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 in line with its industry peers.
VGR's Operating Margin has improved in the last couple of years.
VGR has a Gross Margin (33.43%) which is comparable to the rest of the 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VGR is creating value.
Compared to 1 year ago, VGR has more shares outstanding
Compared to 5 years ago, VGR has more shares outstanding
The debt/assets ratio for VGR has been reduced compared to a year ago.
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.
The Altman-Z score of VGR (2.67) is worse than 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.
With a Debt to FCF ratio value of 6.84, VGR perfoms like the industry average, outperforming 55.56% of the companies in the same 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
A Current Ratio of 2.43 indicates that VGR has no problem at all paying 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.
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.
The Quick ratio of VGR (2.06) is better than 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.
The Revenue for VGR has decreased by -19.98% in the past year. This is quite bad
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
Based on estimates for the next years, VGR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.80% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
VGR is valuated reasonably with a Price/Earnings ratio of 11.90.
66.67% 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 27.38, which is the current average of the S&P500 Index.
VGR is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
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.
VGR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| 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 the industry average as 66.67% of the companies are valued more expensively.
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 VGR does not grow enough to justify the current Price/Earnings ratio.
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%
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 3.67.
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 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
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 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%